U.S. Cellular
🇺🇸 NYSE:USM
•
Dec 31, 2024
U.S. Cellular Q4 2024 Earnings Report
U.S. Cellular reported a decline in revenue and net income for Q4 2024.
Key Takeaways
U.S. Cellular reported a 3% decline in total operating revenue for Q4 2024, reaching $970 million. Net income dropped significantly to $5 million, and GAAP EPS fell to $0.05. The company highlighted improvements in postpaid and prepaid customer retention, but challenges in revenue growth remain.
Total operating revenue declined 3% year-over-year to $970 million.
Net income decreased to $5 million from $14 million in Q4 2023.
GAAP EPS fell to $0.05 from $0.16 in the prior year.
Company did not provide financial guidance for 2025 due to the pending T-Mobile transaction.
U.S. Cellular Revenue
U.S. Cellular EPS
U.S. Cellular Revenue by Segment
Forward Guidance
U.S. Cellular did not provide financial guidance for 2025 due to the pending T-Mobile transaction.
Positive Outlook
- Improved postpaid and prepaid customer retention rates.
- Fixed wireless customers grew by 27%.
- Company announced multiple spectrum transactions to enhance shareholder value.
- Continued deployment of 5G mid-band network for enhanced capacity and speed.
- Strong free cash flow generation in 2024.
Challenges Ahead
- Decline in total operating revenue for Q4 2024.
- Significant drop in net income and GAAP EPS.
- Continued net losses in postpaid customer base.
- Uncertainty around future financial performance due to pending T-Mobile transaction.
- High churn rate in prepaid segment remains a challenge.