T-Cellular authorizes $1.5B inventory repurchase, COO says ‘method is de facto working’ as wi-fi big eyes new acquisitions

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T-Cellular CEO John Legere speaks at CES in January. (GeekWire Photograph / Todd Bishop)

A month after T-Cellular and Dash referred to as off merger talks, Bellevue-based T-Cellular introduced that its board has licensed a plan to repurchase as much as $1.5 billion of the corporate’s widespread inventory. As well as, Deutsche Telekom AG, which is almost all stockholder of T-Cellular, plans its personal purchases of T-Cellular widespread inventory.

The inventory repurchases — set to happen via the tip of subsequent 12 months — sign the corporate’s bullish outlook on its future. Many expertise pundits have questioned what the long run holds for the nation’s third largest wi-fi provider, behind Verizon and AT&T.

Excessive-energy T-Cellular CEO John Legere — who final month stated they might not discover an association with Dash “that meets our excessive bar” — is optimistic concerning the alternatives forward.

“Since launching Un-carrier, T-Cellular has delivered unmatched development and continues to take share in a quickly altering and aggressive wi-fi trade,” Legere stated in a press launch at this time. “This repurchase program underscores our Board of Administrators’ and administration group’s confidence in our enterprise and our dedication to creating worth for shareholders.”

Citing a robust stability sheet and money circulation, Legere stated that “2018 goes to be one other thrilling 12 months in wi-fi and we will’t wait to get began.”

J. Braxton Carter, Government Vice President and Chief Monetary Officer, and Mike Sievert, Chief Working Officer, are talking proper now concerning the repurchase program and different efforts on the 45th Annual UBS World Media and Communications Convention in New York. A stay webcast of the occasion is on the market right here.

T-Cellular COO Mike Sievert (GeekWire Photograph/Kevin Lisota)

Within the remarks, Carter stated that T-Cellular will possible “blow via” the repurchase program and will think about “tuck in” acquisitions within the coming 12 months. These offers might embody the acquisition of smaller regional carriers, although Carter admitted that few gamers exist in that realm now that they’re “previous the Dash deal.”

Past that, the corporate stated that they see growth alternatives in three areas round convergence, leveraging the T-Cellular client model and in enterprise options.

In the meantime, Sievert stated that T-Cellular is “having a unbelievable quarter” and “the method is de facto working”because the model resonates with a passionate group of wi-fi prospects. Going ahead, Sievert stated that T-Cellular is within the enviable place the place it may be each “development pushed” and a “money generator.”

T-Cellular plans to broaden into as many as 500 smaller U.S. cities, a part of a rural growth that may permit the corporate to bolster its presence in markets the place it has not had a presence traditionally.

Within the small enterprise realm, Sievert stated that “we’re actually kicking everybody’s ass right here” as small enterprise prospects more and more select T-Cellular over AT&T and Verizon.

Citing the agricultural and small enterprise growth plans and the corporate’s sturdy natural money circulation, Carter concluded his remarks by noting that T-Cellular is “extremely undervalued” — one of many the explanation why they’re confidently pushing ahead with the inventory buyback.

He stated that T-Cellular has “a tremendous money technology story,” which “offers us unbelievable latitude to create worth and do issues that we haven’t been in a position to do previously.

“I believe extraordinarily thrilling instances,” stated Carter, including that there are “good issues to come back.”

T-Cellular’s inventory closed Tuesday at $60.96, and the shares are up practically 12 % this 12 months.

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