Sept. 9, 2022, 8:06 a.m. EDT

T-Mobile announces $14 billion share-buyback program

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By Emily Bary

T-Mobile US Inc. announced that its board of directors has authorized up to $14 billion in stock buybacks, in a move that shows how the telecommunications industry has evolved in recent years.

The company said Thursday that the buyback authorization runs through Sept. 30, 2023, with repurchases expected to be financed with cash on hand and proceeds from debt issuances or other borrowings.

Though the authorization gives the company the ability to repurchase up to $14 billion in shares, T-Mobile /zigman2/quotes/204659678/composite TMUS -0.76% is not obligated to do so.

Analysts expected the company to launch a buyback program soon, with Morgan Stanley’s Simon Flannery recently noting that T-Mobile paused a three-year buyback program, which had been launched in 2018, as it pursued its acquisition of Sprint Corp. That deal closed in 2020.

Flannery recently commented that T-Mobile’s management team had hinted at a 2021 analyst day of up to $60 billion in shareholder-return initiatives from 2023 to 2025, though the company had also signaled that these efforts could start earlier.

T-Mobile has come a long way since it announced its merger with Sprint. At the time, analysts were worried about the state of Sprint’s subscriber base and the impact of the deal on T-Mobile’s financial position .

But T-Mobile has curried favor on Wall Street more recently, with many analysts saying that the company has a lead over rivals Verizon Communications Inc. /zigman2/quotes/204980236/composite VZ -1.99% and AT&T Inc. /zigman2/quotes/203165245/composite T -1.54% when it comes to network quality , thanks in part to spectrum acquired through the Sprint deal.

Back in the day, T-Mobile’s network was seen as lagging Verizon’s and AT&T’s.

T-Mobile has been by far the best performer of the big U.S. wireless stocks this year. Its shares are up 25% over the course of 2022, while Verizon’s have lost 20% and AT&T’s have dropped 10%.

US : U.S.: Nasdaq
$ 149.90
-1.15 -0.76%
Volume: 10.15M
Nov. 28, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$187.93 billion
Rev. per Employee
$ 38.25
-0.78 -1.99%
Volume: 18.46M
Nov. 28, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$163.88 billion
Rev. per Employee
$ 18.83
-0.30 -1.54%
Volume: 26.28M
Nov. 28, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$136.27 billion
Rev. per Employee

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