Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the 5% service revenue growth guidance and the factors contributing to it? A: Peter Osvaldik, CFO, explained that the growth is driven by both customer growth and ARPA (Average Revenue Per Account) growth. The wholesale revenue decline is slowing, and they expect continued deepening of customer relationships to drive ARPA growth. The company delivered over 3% ARPA growth in 2024 and expects similar growth in 2025.
Q: How is T-Mobile addressing the potential slowdown in subscriber growth, and what gives you confidence in your guidance? A: CEO Mike Sievert highlighted that T-Mobile is gaining share across various markets, including top 100 markets, smaller markets, and rural areas. The company is also experiencing strong growth in T-Mobile for Business. The combination of best network, best value, and best experiences is driving this growth, leading to an increased guidance for subscriber additions.
Q: What is the strategy behind the Vistar acquisition, and how does it fit into T-Mobile's advertising ambitions? A: Mike Katz, President of Marketing, Innovation, and Experience, explained that Vistar's technology platform combined with T-Mobile's customer intelligence can transform the out-of-home advertising industry by bringing measurability and impact. This aligns with T-Mobile's ambition to become a leading advertising support service.
Q: How is T-Mobile planning to leverage its fiber and high-speed wireless products in the broadband market? A: CEO Mike Sievert stated that the focus is on taking market share rather than just market growth. T-Mobile has adjusted its pricing to compete for price-sensitive customers while also achieving broadband ARPA growth. The company sees opportunities to deepen ARPU with associated services over time.
Q: What is T-Mobile's approach to wholesale opportunities and managing fixed wireless demand in high-utilization areas? A: Mike Sievert explained that T-Mobile looks for wholesale partners who can target audiences better than T-Mobile's existing brands. The company aims for attractive returns on network capacity. For fixed wireless, T-Mobile uses an algorithm to ensure sectors have excess capacity before approving broadband applicants, avoiding congestion issues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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