Shares of T-Mobile (NASDAQ:TMUS) rose by 5.4% on Friday, following the wireless network operator's solid third-quarter results.
T-Mobile's blockbuster merger with Sprint led to a 74% jump in revenue, to $19.3 billion. Cost cuts helped the combined company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surge an even more impressive 110%, to $7.1 billion.
T-Mobile's customer growth continues to pace the U.S. telecom industry. It gained a record 2 million net subscribers in the third quarter, which boosted its total customer count above 100 million for the first time.
T-Mobile is realizing cost efficiencies faster than it anticipated following its combination with Sprint. It now expects to achieve over $1.2 billion in savings this year. In turn, management raised its 2020 full-year adjusted EBITDA forecast to roughly $13.65 billion, up from a previous estimate of $12.4 billion to $12.7 billion.
These cost reductions are coming at a good time. T-Mobile is investing heavily in its new 5G network, to the tune of $3.2 billion in capital expenditures in the third quarter alone. The fifth-generation wireless technology is an important part of T-Mobile's growth strategy -- and establishing a leadership position in the 5G rollout race will be vital for its continued success.