Sep 30, 2024

U.S. Cellular Q3 2024 Earnings Report

Reported a decrease in revenue and a net loss due to a license impairment.

Key Takeaways

U.S. Cellular reported a decrease in total operating revenues to $922 million, compared to $963 million in the same period last year. The company experienced a net loss attributable to UScellular shareholders of $(79) million, or $(0.92) per share, compared to a net income of $23 million, or $0.26 per share, in the same period last year. Excluding a license impairment, net income was $23 million, or $0.26 per share.

Announced the sale of select spectrum assets for $1 billion to Verizon in October 2024, and the sale of additional spectrum to two other mobile operators.

Improved wireless operating results with postpaid handset net losses improving.

Postpaid ARPU grew 2%, while service revenues decreased 2%.

Fixed wireless customers grew 32% to 140,000.

Total Revenue
$922M
Previous year: $963M
-4.3%
EPS
$0.26
Previous year: $0.26
+0.0%
Postpaid Connections
4M
Previous year: 4.16M
-3.8%
Postpaid ARPU
$52
Previous year: $51.1
+1.8%
Postpaid Churn Rate
1.25%
Previous year: 1.3%
-3.8%
Gross Profit
$539M
Previous year: $550M
-2.0%
Cash and Equivalents
$272M
Previous year: $153M
+77.8%
Free Cash Flow
$105M
Previous year: $217M
-51.6%
Total Assets
$10.5B
Previous year: $10.7B
-2.2%

U.S. Cellular

U.S. Cellular

Forward Guidance

UScellular's current estimates of full-year 2024 results are shown below. Such estimates represent management’s view as of November 1, 2024.

Positive Outlook

  • Service revenues $2,950-$3,000 million
  • Adjusted OIBDA (Non-GAAP) $800-$875 million
  • Adjusted EBITDA (Non-GAAP) $970-$1,045 million
  • Capital expenditures $550-$600 million