uploads///Telecom T Mobile Q EBITDA

How Much Could T-Mobile’s EBITDA Grow This Year?

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Mar. 11 2019, Published 7:33 p.m. ET

T-Mobile’s adjusted EBITDA

This year, T-Mobile expects its adjusted EBITDA to grow YoY (year-over-year) to $12.7 billion–$13.2 billion from $12.4 billion. The company’s adjusted EBITDA grew ~9.6% YoY to $3.0 billion in the fourth quarter, led by top-line growth, an $83 million boost by its new revenue recognition accounting standards, and a smaller impact by hurricane-related expenses. T-Mobile’s adjusted EBITDA grew in the fourth quarter despite its operating expenses rising ~6.9% YoY to $10.3 billion. Its adjusted EBITDA margin increased YoY to 36% from 35%.

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Peer comparison

In the fourth quarter, Verizon’s (VZ) consolidated adjusted EBITDA margin was 33.8%, while AT&T’s (T) combined domestic wireless operations EBITDA margin was 40.1%. Sprint’s (S) consolidated adjusted EBITDA margin was 54.4% in the third quarter of fiscal 2018 (ended December 31).

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