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BELLEVUE - T-Mobile (NASDAQ:TMUS), a $288 billion market cap wireless carrier with strong financial health according to InvestingPro analysis, has increased its expected cost synergies from the recently closed UScellular acquisition to approximately $1.2 billion in annual run rate, up 20% from its original $1.0 billion target, according to a company update released Thursday.
The wireless carrier now plans to complete the integration in approximately two years, faster than the initially projected three-to-four-year timeline. The revised synergy target includes about $950 million in operational expenses and $250 million in capital expenditure savings.
T-Mobile closed the UScellular transaction on August 1 and expects it to contribute approximately $400 million in service revenues and $125 million in Core Adjusted EBITDA during the third quarter of 2025. The company, which currently generates $84.05 billion in annual revenue with a healthy 6.27% growth rate, will also incur approximately $100 million in integration costs and $175 million in depreciation and amortization expenses related to the acquisition this quarter.
The acquisition will impact T-Mobile’s consolidated Postpaid Average Revenue Per Account (ARPA) by approximately $1.50 in Q3 due to the addition of lower-ARPA customers from both UScellular and the Metronet joint venture. However, T-Mobile’s underlying business continues to show strong ARPA growth, with expectations for full-year 2025 growth of at least 3.5% compared to 2024, excluding these acquisitions.
As part of its ongoing digital transformation efforts, T-Mobile also announced it expects to recognize approximately $350 million in predominantly non-cash costs in Q3 related to streamlining its billing technology stack. Additionally, the company anticipates $120 million in depreciation, amortization, integration and other expenses from recent acquisitions outside of UScellular and ongoing network investments.
T-Mobile maintained its full-year guidance for postpaid and postpaid phone customer additions, noting that stronger performance in its core business is expected to offset the initially higher-churning UScellular customer base.
The information is based on a press release statement from T-Mobile. According to InvestingPro, the company trades at a P/E ratio of 23.7 and appears slightly overvalued based on its Fair Value model. Discover 7 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, T-Mobile US Inc. reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company’s earnings per share were $2.84, exceeding the analyst forecast of $2.68, while revenue reached $21.13 billion, slightly above the expected $21.04 billion. Goldman Sachs has initiated coverage on T-Mobile with a Buy rating and a price target of $286, highlighting the company’s growth potential as the second-largest mobile network operator in the US. Additionally, T-Mobile and Starlink have shown interest in acquiring spectrum from EchoStar, following AT&T’s agreement to purchase certain licenses for approximately $23 billion. T-Mobile also announced leadership changes, appointing André Almeida as President of Growth and Emerging Businesses, effective September 1, 2025. These developments reflect T-Mobile’s ongoing strategic initiatives and market activities.
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