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Jun 30, 2024

TDS Q2 2024 Earnings Report

TDS reported mixed results for Q2 2024. UScellular announced the sale of its wireless operations, while TDS Telecom showed growth in revenue and profitability due to broadband investments.

Key Takeaways

TDS reported total operating revenues of $1,238 million for the second quarter of 2024, a decrease compared to $1,267 million for the same period one year ago. Net loss attributable to TDS common shareholders was $(14) million, with a diluted loss per share of $(0.13). TDS Telecom reported revenue growth and profitability improvements driven by broadband investments, while UScellular focused on balancing subscriber growth with financial discipline.

UScellular announced the sale of its wireless operations and is now reporting Wireless and Towers segments.

TDS Telecom is making progress on its goal to deliver 125,000 fiber service addresses in 2024, delivering 27,000 in Q2.

UScellular saw sequential improvement in postpaid gross additions and postpaid net losses, with a 2% growth in postpaid ARPU.

TDS Telecom reported a 4% increase in operating revenues and a 7% growth in residential revenue.

Total Revenue
$1.24B
Previous year: $1.27B
-2.3%
EPS
-$0.13
Previous year: -$0.17
-23.5%
Wireline Broadband Connections
550K
Previous year: 523.6K
+5.0%
Wireline Residential Revenue
$186M
Wireline Commercial Revenue
$37M
Gross Profit
$482M
Previous year: $1.27B
-62.0%
Cash and Equivalents
$346M
Previous year: $251M
+37.8%
Free Cash Flow
$186M
Previous year: $170M
+9.4%
Total Assets
$13.9B
Previous year: $14.4B
-3.7%

TDS

TDS

TDS Revenue by Segment

Forward Guidance

TDS provided estimates for full-year 2024 results for UScellular and TDS Telecom.

Positive Outlook

  • UScellular service revenues are expected to be $2,950-$3,050 million.
  • UScellular adjusted OIBDA is expected to be $750-$850 million.
  • UScellular adjusted EBITDA is expected to be $920-$1,020 million.
  • TDS Telecom adjusted OIBDA is expected to be $330-$360 million.
  • TDS Telecom adjusted EBITDA is expected to be $330-$360 million.

Challenges Ahead

  • TDS Telecom total operating revenues are expected to be $1,050-$1,080 million, revised down from $1,070-$1,100 million.
  • UScellular capital expenditures are expected to be $550-$650 million.
  • TDS Telecom capital expenditures are expected to be $310-$340 million.
  • The estimates do not reflect any anticipated costs, expenses, or results of the strategic alternatives review.
  • Final results may differ materially from estimated results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income