Telephone and Data Systems, Inc. Reports Fourth Quarter and Full Year 2024 Results

Telephone and Data Systems, Inc. (TDS) has released its financial results for the fourth quarter and full year of 2024. The company, which provides wireless, broadband, video, and voice services through its subsidiaries UScellular and TDS Telecom, reported a decrease in total operating revenues and net income compared to the previous year.

Financial Highlights

For the fourth quarter of 2024, TDS reported total operating revenues of $1,240 million, a 6% decrease from $1,313 million in the same period of 2023. The net loss attributable to TDS common shareholders was $(11) million, or $(0.10) per diluted share, compared to a net loss of $(523) million, or $(4.64) per diluted share, in the fourth quarter of 2023. For the full year 2024, total operating revenues were $4,964 million, down 4% from $5,160 million in 2023. The net loss attributable to TDS common shareholders for the year was $(97) million, or $(0.85) per diluted share, compared to $(569) million, or $(5.06) per diluted share, in 2023.

Business and Operational Highlights

UScellular, a subsidiary of TDS, announced multiple transactions related to its strategic alternatives review, including a significant transaction with T-Mobile and four spectrum transactions with various mobile network operators. The company also reported improvements in wireless operating results, with postpaid and prepaid net losses and churn rates showing positive trends. Fixed wireless customers grew by 27%, and cash flows from operating activities and free cash flow increased year over year. UScellular continued its 5G mid-band network deployment, enhancing capacity and speed for customers.

TDS Telecom exceeded its full-year 2024 fiber address goal by delivering 129,000 marketable fiber service addresses. The company expanded its footprint by 6%, increasing total service addresses to 1.8 million. Residential broadband connections grew by 2%, and residential revenue per connection increased by 5%. Total wireline expansion residential revenues grew to $114 million, up from $75 million in 2023.

Strategic Initiatives and Corporate Developments

In 2024, TDS and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile, with the transaction expected to close in mid-2025. Additionally, UScellular entered into agreements with Verizon Communications, Inc., Nsight Spectrum, LLC, Nex-Tech Wireless, LLC, and New Cingular Wireless PCS, LLC (AT&T) for the sale of various spectrum licenses. Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.

Management's Perspective

Walter C. D. Carlson, TDS President and CEO, commented on the company's progress in 2024, highlighting the strategic review of alternatives at UScellular and investments in high-quality networks. Carlson emphasized the ongoing fiber expansion at TDS Telecom and the focus on operational priorities and growing the tower business at UScellular.

Future Outlook

TDS Telecom provided guidance for 2025, estimating total operating revenues between $1,030 million and $1,070 million, adjusted OIBDA between $310 million and $350 million, and adjusted EBITDA between $320 million and $360 million. Capital expenditures are expected to range from $375 million to $425 million. The company plans to continue its fiber expansion and participate in the FCC’s Enhanced Alternative Connect America Cost Model program, aiming to bring a fiber-rich network to over 150,000 new marketable service addresses throughout the country.

SEC Filing: TELEPHONE & DATA SYSTEMS INC /DE/ [ TDS ] - 8-K - Feb. 21, 2025