T-Mobile announces $14b share buyback

Wireless carrier T-Mobile US Inc on Thursday announced a $14 billion share buyback program that will run till September next year, as it seeks to reward shareholders after faring better than rivals.

Its shares advanced 2.8 per cent to $149.47 in aftermarket trading. The stock has jumped 25.3 per cent for the year so far, compared with a 9.7 per cent drop in rival AT&T and Verizon’s 20.5 per cent slump.

T-Mobile’s free cash flow is poised for growth in the coming years, analysts have said, as costs related to the buyout of rival Sprint Corp wind down and more customers sign up for the telecom firm’s 5G networks at competitive prices.

The buyback announcement comes a day after T-Mobile announced the sale of its wireline business to Cogent Communications Holdings Inc in a bid to focus more on 5G.

The repurchases are expected to be made from available cash on hand and proceeds of one or more debt issuances or other borrowings, the company said.