United States

Customer development

Customers

At December 31, 2024, the United States operating segment (T‑Mobile US) had 129.5 million customers, compared to 119.7 million customers at December 31, 2023. Net customer additions were 6.3 million in 2024, compared to 5.9 million in 2023 due to the factors described below.

Postpaid net customer additions were 6.1 million in 2024, compared to 5.7 million in 2023. Postpaid net customer additions increased primarily from higher postpaid other net customer additions, primarily due to higher net additions from mobile internet devices and higher net additions from other connected devices. The increase in net additions from mobile internet devices was primarily due to higher prior year deactivations of lower Average Revenue Per User (ARPU) mobile internet devices in the educational sector that were activated during the coronavirus pandemic and no longer needed. The increase in postpaid other net customer additions was partially offset by lower net additions from wearables and lower net additions from High Speed Internet, primarily driven by increased deactivations from a growing customer base, partially offset by a lower churn rate. High Speed Internet net customer additions included in postpaid other net customer additions were 1.5 million and 1.9 million in 2024 and 2023, respectively.

Prepaid net customer additions were 258 thousand in 2024, compared to 282 thousand in 2023. The decrease was primarily driven by continued moderation of prepaid industry growth and lower net additions from High Speed Internet, partially offset by higher net additions following the Ka’ena Acquisition. High Speed Internet net customer additions included in prepaid net customer additions were 200 thousand and 252 thousand in 2024 and 2023, respectively.

Development of operations

Revenue, service revenue

Total revenue for the United States operating segment of EUR 75.0 billion in 2024 increased by 3.6 %, compared to EUR 72.4 billion in 2023. In U.S. dollars, T‑Mobile US’ total revenue also increased by 3.6 % during the same period. Total revenue increased primarily due to higher service revenues, partially offset by lower other revenues. The components of these changes are described below.

Service revenues increased in 2024 by 4.5 % to EUR 61.1 billion. In U.S. dollars, T‑Mobile US’ service revenues also increased by 4.5 % during the same period. This increase resulted from higher postpaid revenues, primarily due to higher average postpaid accounts and higher postpaid Average Revenue per Account (ARPA). In addition, service revenues increased from higher prepaid revenues, primarily due to higher average prepaid customers, primarily from the prepaid customers acquired through the Ka’ena Acquisition, partially offset by lower prepaid ARPU. This increase was partially offset by lower wholesale and other service revenues, primarily from lower MVNO revenues, lower Affordable Connectivity Program and Lifeline revenues, and lower Wireline revenues due to the sale of the Wireline Business on May 1, 2023. The decrease in MVNO revenues includes the impact from the Ka’ena Acquisition, and lower DISH and TracFone MVNO revenue.

Equipment revenues increased slightly in 2024 primarily from an increase in liquidation revenue, primarily due to a higher number of liquidated devices, including the impact from the transition of certain device recovery programs from external sources to in-house processing. This increase was mostly offset by a net decrease in the total number of devices sold, driven by lower government assistance program and prepaid devices, partially offset by higher postpaid devices. This decrease was partially offset by higher average revenue per device sold, net of promotions, primarily driven by an increase in the high-end phone mix. In addition, the increase in equipment revenues was offset by a decrease in lease revenues, primarily due to a lower number of customer devices under lease as a result of the continued strategic shift in device financing from leasing to equipment installment plans (EIP).

Other revenues decreased in 2024 primarily from the transition of certain device recovery programs from external sources to in-house processing, resulting in a change in presentation to equipment revenues.

Adjusted EBITDA AL, EBITDA AL

In euros, adjusted EBITDA AL increased by 8.1 % to EUR 28.5 billion in 2024, compared to EUR 26.4 billion in 2023. The adjusted EBITDA AL margin increased to 38.0 % in 2024, compared to 36.5 % in 2023. In U.S. dollars, adjusted EBITDA AL also increased 8.1 % during the same period. Adjusted EBITDA AL increased primarily due to higher service revenues and slightly higher equipment revenues, as discussed above, lower costs due to the sale of the Wireline Business on May 1, 2023, higher Sprint Merger-related synergies, and lower equipment costs as a result of a net decrease in the total number of devices sold. The net decrease in the total number of devices sold was driven by lower government assistance program and prepaid devices, partially offset by higher postpaid devices. The increase in adjusted EBITDA AL was partially offset by higher site costs related to the continued build-out of the T‑Mobile US nationwide 5G network, higher advertising expenses, an increase in liquidation costs, primarily due to a higher number of liquidated devices, and higher average cost per device sold, primarily driven by an increase in the high-end phone mix. The increase in liquidation costs includes the impact from the transition of certain device recovery programs from external sources to in-house processing. In U.S. dollars, lease revenues decreased as a result of the continued strategic shift in device financing from leasing to EIP by 69.1 % in 2024.

In euros, adjusted core EBITDA AL increased by 8.9 % to EUR 28.5 billion in 2024, compared to EUR 26.1 billion in 2023. In U.S. dollars, adjusted core EBITDA AL increased by 9.0 % during the same period. The increase was primarily due to the fluctuation in adjusted EBITDA AL as discussed above, excluding the change in lease revenues.

EBITDA AL in 2024 included special factors of EUR 2.3 billion compared to EUR‑1.6 billion in 2023. The change in special factors was primarily due to the spectrum impairment reversal, lower Sprint Merger-related costs and severance and related costs associated with the August 2023 workforce reduction recognized in the prior year. The change in special factors was also impacted by other special items including certain severance, restructuring, and other expenses, gains and losses, not directly attributable to the Sprint Merger which are not reflective of T‑Mobile US’ core business activities recognized in 2023. Overall, EBITDA AL increased by 24.4 % to EUR 30.9 billion in 2024, compared to EUR 24.8 billion in 2023, primarily due to the factors described above, including special factors.

Profit/loss from operations (EBIT)

EBIT increased by 40.3 % to EUR 20.3 billion in 2024, compared to EUR 14.5 billion in 2023. In U.S. dollars, EBIT increased by 39.8 % during the same period primarily due to higher EBITDA AL. In U.S. dollars, depreciation, amortization and impairment losses remained flat.

Cash capex (before spectrum investment), cash capex

Cash capex (before spectrum investment) decreased by 9.0 % to EUR 8.2 billion in 2024, compared to EUR 9.1 billion in 2023. In U.S. dollars, cash capex (before spectrum investment) also decreased by 9.0 % during the same period due to a decrease in purchases of property and equipment, primarily due to increased capital efficiencies from accelerated investments in the T‑Mobile US nationwide 5G network in previous years.

Cash capex increased by 13.5 % to EUR 11.4 billion in 2024, compared to EUR 10.1 billion in 2023. In U.S. dollars, cash capex increased by 13.9 % during the same period primarily due to an increase in purchases of spectrum licenses, primarily for the first tranche and certain licenses of the second tranche of 600 MHz licenses purchased from Channel 51. The increase was partially offset by lower purchases of property and equipment as discussed above.