Mobile announces $14 billion share buyback
Wireless carrier T-Mobile US Inc on Thursday announced a $14 billion share buyback program that will run till September next year, as it seeks to reward shareholders after faring better than rivals.
Its shares advanced 2.8% to $149.47 in aftermarket trading. The stock has jumped 25.3% for the year so far, compared with a 9.7% drop in rival AT&T and Verizon’s 20.5% slump.
T-Mobile’s free cash flow is poised for growth in the coming years, analysts have said, as costs related to the buyout of rival Sprint Corp wind down and more customers sign up for the telecom firm’s 5G networks at competitive prices.
The buyback announcement comes a day after T-Mobile announced the sale of its wireline business to Cogent Communications Holdings Inc in a bid to focus more on 5G.
The repurchases are expected to be made from available cash on hand and proceeds of one or more debt issuances or other borrowings, the company said.
In its investor day last year, T-Mobile executives had said the company expects free cash flow growth to support $60 billion in stock buybacks from 2023 to 2025.
(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)