T-Mobile sees $350M in non-cash costs in Q3 related to digital transformation

T-Mobile (TMUS) also continues to invest in the business to drive further differentiation. This includes decisions to enable the company’s ongoing digital transformation efforts and ongoing investments by the Lumos and Metronet joint ventures as they continue to ramp on fiber deployment. In Q3, to further enable the ongoing rapid success of its digital transformation strategy, T-Mobile is accelerating its move to a more streamlined and dynamic billing technology stack. As a result of the acceleration, the company expects to recognize approximately $350M in predominantly non-cash costs associated with its digital technology transformation, including non-cash impairment expense and accelerated depreciation related to the retirement of software as part of its shift to a more streamlined and dynamic billing technology stack enabling the company’s rapid digital transformation, and personnel costs primarily associated with technology modernization. Also in Q3, the company expects its recent acquisitions outside of UScellular, alongside ongoing network investments, to generate an additional $120M in depreciation, amortization, integration and other expenses. These costs will be excluded from core adjusted EBITDA.