Fri, Aug 2, 12:09 PM (88 days ago)
Telephone and Data Systems, Inc. (TDS) reported its financial results for the quarter ended June 30, 2024. Key highlights include: - **Revenue**: Total operating revenues decreased by 2% year-over-year to $1.238 billion, driven by a 3% decline in UScellular revenues and a 4% increase in TDS Telecom revenues. - **Operating Income**: Operating income increased by 17% to $39 million, with UScellular contributing $36 million and TDS Telecom $19 million. - **Net Income**: TDS reported a net income of $7 million, a significant improvement from a net loss in the same period last year. - **Adjusted EBITDA**: Adjusted EBITDA rose by 17% to $357 million, reflecting improved operational efficiencies. - **Cash Flow**: Net cash provided by operating activities was $626 million, while capital expenditures totaled $464 million. - **Strategic Moves**: TDS and UScellular are exploring strategic alternatives, including the sale of UScellular's wireless operations to T-Mobile for $4.4 billion, expected to close by mid-2025. - **Debt and Liquidity**: TDS entered a $375 million term loan agreement, with $300 million drawn initially, and maintains significant undrawn borrowing capacity. Overall, TDS demonstrated resilience with improved profitability and strategic initiatives aimed at optimizing its business portfolio.