T-Mobile Us Inc (NASDAQ:TMUS) stock rose 6.37% (As on October 28, 11:35:31 AM UTC-4, Source: Google Finance) though the company posted lower than expected results for the third quarter of FY 22. Total service revenues increased 4% year-over-year to $15.4 billion, which included Postpaid service revenue growth of 7% year-over-year driven by continued customer growth. Net income of $508 million decreased year-over-year primarily due to the impacts in the current quarter, net of tax, associated with merger-related costs of $972 million and loss related to the anticipated sale of the wireline business of $803 million. Core Adjusted EBITDA increased 11% year-over-year to $6.7 billion primarily due to Service revenue growth and increased synergy realization. Net cash provided by operating activities increased 26% year-over-year to $4.4 billion, which included cash payments for merger-related costs of $942 million. Free Cash Flow increased 32% year-over-year to $2.1 billion, which included cash payments for merger-related costs of $942 million.

TMUS in the third quarter of FY 22 has reported the adjusted earnings per share of 40 cents, missing the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported 0.7 percent fall in the adjusted revenue growth to $19.48 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue by 2.99%.

Meanwhile, by the end of Q3, the company had successfully decommissioned substantially all targeted Sprint macro sites, more than a year earlier than the original merger plan. And the Ultra Capacity 5G now reaches 250 million Americans. In Q3, the company had posted a record 394,000 postpaid account net adds, the highest in company history and the highest reported in the industry again. TMUS has also closed the first asset-backed securities issuance related to the equipment receivables, which provides yet another established and attractive capital source as the company continues to be opportunistic in optimizing both the capital structure and cost. The company has commenced the significant share repurchase program in September, and it repurchased 4.9 million shares for a total purchase price of $669 million in Q3.

T-Mobile is raising its merger synergies guidance range to $5.7 to $5.8 billion in 2022, up from the previous range of $5.4 to $5.6 billion. Postpaid net customer additions are expected to be between 6.2 million and 6.4 million, an increase from prior guidance of 6.0 million to 6.3 million. Core Adjusted EBITDA is expected to be between $26.2 billion and $26.4 billion, an increase from prior guidance of $26.0 billion to $26.3 billion.