10-Q - TELEPHONE & DATA SYSTEMS INC /DE/ (0001051512) (Filer)

Fri, May 2, 12:07 PM (20 days ago)

**Telephone and Data Systems, Inc. (TDS) - Q1 2025 Financial Summary** **Company Overview:** TDS (Ticker: TDS) is a diversified telecommunications company providing services to approximately 5.5 million connections nationwide. It operates through UScellular (83% owned) and TDS Telecom (wholly owned). **Q1 2025 Financial Performance:** **Revenue:** - **Total Operating Revenues:** $1,154 million, down 9% YoY. - **UScellular:** $891 million, down 6% YoY. - **TDS Telecom:** $257 million, down 3% YoY. - **All Other:** $5 million, down 87% YoY. **Profit Margins:** - **Operating Income:** $35 million, down 49% YoY. - **UScellular:** $41 million, down 19% YoY. - **TDS Telecom:** $0, down from $27 million YoY. - **All Other:** $1 million, up from -$6 million YoY. - **Net Income:** $12 million, down 69% YoY. - **Net Income Attributable to TDS Shareholders:** $7 million, down 74% YoY. - **Net Income (Loss) Attributable to TDS Common Shareholders:** -$10 million, down from $12 million YoY. **Cash Flow:** - **Free Cash Flow:** $47 million, up from -$20 million YoY. - **Capital Expenditures:** $112 million, down 49% YoY. - **UScellular:** $53 million, down 60% YoY. - **TDS Telecom:** $59 million, down 32% YoY. **Earnings Changes:** - **Adjusted OIBDA:** $287 million, down 10% YoY. - **Adjusted EBITDA:** $333 million, down 9% YoY. **Segment Performance:** **UScellular:** - **Retail Connections:** 4.38 million, down from 4.49 million YoY. - **Churn Rate:** 1.21%, down from 1.22% YoY. - **Postpaid ARPU:** $52.06, up from $51.96 YoY. - **Postpaid ARPA:** $132.25, up from $132.00 YoY. **TDS Telecom:** - **Total Connections:** 1.12 million, down from 1.16 million YoY. - **Residential Broadband Churn:** 1.3%, down from 1.4% YoY. - **Residential Revenue per Connection:** Up 2% YoY. **Future Operations Impact:** - **Strategic Transactions:** UScellular is selling wireless operations and spectrum assets to T-Mobile for $4,400 million, with additional spectrum sales to Verizon and AT&T. - **Uncertainties:** Potential tariff increases, regulatory approvals, and market competition pose risks to future operations. **Trends:** - **5G Deployment:** UScellular continues mid-band spectrum deployment to enhance speed and capacity. - **Fiber Deployment:** TDS Telecom focuses on fiber deployment in expansion markets. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $371 million, down from $384 million QoQ. - **Debt:** $4,042 million, with a Consolidated Leverage Ratio of 3.75:1. - **Dividends:** $0.04 per share for TDS Common Shares, $0.414 for Series UU, and $0.375 for Series VV Preferred Shares.