Its shares rose 2.8% to $149.47 in the secondary market. The stock has jumped 25.3% for the year so far, compared with a 9.7% decline for rival AT&T and a 20.5% drop for Verizon.
T-Mobile’s free cash flow is poised to grow in coming years, analysts say, as costs related to the takeover of rival Sprint Corp decline and more customers sign up for the company’s 5G networks. telecommunications at competitive prices.
The takeover announcement comes a day after T-Mobile announced the sale of its Cogent Communications Holdings Inc wireline business in a bid to focus more on 5G.
Redemptions are expected to be made from available cash and the proceeds of one or more issues of debt securities or other borrowings, the company said.
At its Investor Day last year, T-Mobile executives said the company expects growth in free cash flow to support $60 billion in share buybacks from 2023 to 2025. .