T-Mobile CEO says mobile 'more competitive,' discloses buyback, dividend plans
Justin Sullivan
T-Mobile (NASDAQ:TMUS) shares reversed course and traded lower on Wednesday after CEO Mike Sievert disclosed the company's plans to return cash to shareholders but also noted that the mobile wireless environment is more "competitive."
Speaking at the Goldman Sachs Communacopia + Technology Conference, Sievert said the environment where it operates alongside AT&T (T) and Verizon (VZ) has gotten more competitive.
Earlier on Wednesday, AT&T (T) CEO John Stankey said he saw the potential for higher prices in mobile, adding that the giveways that cable companies are doing with their respective mobile plans are not sustainable.
In addition, Sievert also said that T-Mobile (TMUS) would authorize an additional $19B in share buybacks, adding to the existing $14B program it has currently. The 51-year-old Sievert added that higher cash flows have allowed the Bellevue, Washington-based company to add additional money to its share buyback program, which will run through the end of next year.
Sievert also said that T-Mobile's (TMUS) parent company, Deutsche Telekom, will not be selling any shares.
In addition, Sievert said that T-Mobile (TMUS) has a plan to pay its first dividend, with the total amounting to roughly $750M in the fourth quarter. The company is expected to pay about $3B in total dividends in 2024, with the payment expected to grow about 10% annually.
T-Mobile (TMUS) shares fell about 2% in late trading on Wednesday.

More on T-Mobile

Seeking Alphaâs Quant Rating on T-Mobile US
T-Mobile US: Clean Capital Return Policy That Is Very Attractive
T-Mobile: Better Customer Acquisition Than AT&T And Verizon
Navigating The Telecom Turbulence: How T-Mobile Is Weathering The Storm
T-Mobile US, Inc. Q2 2023 Earnings Call Transcript
T-Mobile cutting its workforce by nearly 7%
Stan Druckenmiller's Duquesne adds GE, Builders FirstSource, exits AMD
T-Mobile dips after revenue miss, but a beat-and-raise on customer growth