Dec 31, 2023

U.S. Cellular Q4 2023 Earnings Report

UScellular's financial performance in Q4 2023 resulted in a net income of $14 million and total operating revenues of $1,000 million.

Key Takeaways

UScellular reported Q4 2023 total operating revenues of $1,000 million, compared to $1,048 million for the same period one year ago. Net income attributable to UScellular shareholders was $14 million, or $0.16 per share, compared to a loss of $(28) million, or $(0.33) per share, in the same period one year ago.

Postpaid ARPU grew 2% year over year.

Fixed wireless customers increased 46% year over year, reaching 114,000.

Tower rental revenues grew 8% year over year, reaching $100 million.

The company began launching its 5G mid-band network.

Total Revenue
$1B
Previous year: $1.05B
-4.6%
EPS
$0.16
Previous year: -$0.33
-148.5%
Postpaid Connections
4.11M
Previous year: 4.25M
-3.3%
Postpaid ARPU
$51.6
Previous year: $50.6
+2.0%
Postpaid Churn Rate
1.44%
Previous year: 1.35%
+6.7%
Gross Profit
$537M
Previous year: $537M
+0.0%
Cash and Equivalents
$179M
Previous year: $273M
-34.4%
Free Cash Flow
-$7M
Previous year: -$13M
-46.2%
Total Assets
$11.3B
Previous year: $11.1B
+1.4%

U.S. Cellular

U.S. Cellular

U.S. Cellular Revenue by Segment

Forward Guidance

UScellular provided estimates for full-year 2024 results, including service revenues between $2,950 million and $3,050 million, Adjusted OIBDA between $750 million and $850 million, Adjusted EBITDA between $920 million and $1,020 million, and capital expenditures between $550 million and $650 million.

Positive Outlook

  • Focus on improving subscriber results.
  • Drive growth in fixed wireless.
  • Drive growth in towers.
  • Maintain financial discipline.
  • Advance the network through mid-band deployment.

Challenges Ahead

  • Intense competition.
  • Smaller scale relative to larger competitors.
  • Uncertainties in future cash flows and liquidity.
  • Deterioration of U.S. or global economic conditions.
  • Impact, duration and severity of public health emergencies.