T-Mobile Reports Second-Quarter Profit of $3.2 Billion

T-Mobile US reported second-quarter earnings of $3.2 billion, resulting in $2.99 per share and beating the consensus analyst expectation of $2.59 per share. The company credited its growth to strategic network investments and a shift toward attracting higher-quality accounts through its Experience plans, which offer premium unlimited data and streaming perks.

Jon Freier, the company's chief operating officer, noted that 60 percent of new customers chose these premium plans. This trend drove a 2 percent year-over-year increase in postpaid average revenue per account to $152.91.

Following the finalization of its merger with UScellular, T-Mobile is moving past temporary merger-related costs. Chief Financial Officer Peter Osvaldik discussed the company's performance and capital-allocation framework, leading the company to slightly increase its full-year adjusted free cash flow guidance to a range between $18.4 billion and $18.8 billion. During the second quarter, T-Mobile repurchased $2.2 billion in stock and paid $1.1 billion in dividends.