T-Mobile CEO says authorizing added $19B in buybacks, dividends

While speaking at the Goldman Sachs Communacopia conference, T-Mobile CEO Mike Sievert said, according to a transcript of the event, that what is next for the company after integration is “taking advantages of the strengths we’ve built in network and the ability to deliver a superior value to continue to profitably outpace this market on growth and translate that into superior cash flow returns for our shareholders… We’re in the middle of a multiyear strategy for this company post merger that is working and the business is performing very, very well. That stability in fact, is it okay if I break some news… So that stability and quarter-after-quarter performance and demonstration of our ability to translate this strategy into cash flows has caused us as a Board to go ahead and authorize the next tranche of shareholder remuneration. And so we are going to be authorizing a $19 billion program over the next 5 quarters through the end of 2024. And in addition to the $14 billion that we expect to complete this quarter. And it’s really an exciting moment for us. And by the way, part of that this is also news for the first time in our history, we will authorize a $3 billion annual dividend as part of that $19 billion. So across the 5 quarters, that’s $3.75 billion in quarterly dividend payments. And we expect the dividends to grow after this year at about 10% per year. And so we’re starting down that path now in a business that is expected to deliver $16 billion to $18 billion in cash flows according to our Analyst Day guidance for next year. That’s a modest start, but I think it’s really important to begin to move down that path without constraining us in any way in terms of our ability to allocate capital to business objectives.”