TDS reports fourth quarter and full year 2017 results

CHICAGO, Feb. 23, 2018

As previously announced, TDS will hold a teleconference February 23, 2018 at 9:30 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,308 million for the fourth quarter of 2017, versus $1,293 million for the same period one year ago and Net income available to TDS common shareholders and related diluted earnings per share were $287 million and $2.54, respectively, for the fourth quarter of 2017.  Excluding a benefit of $327 million ($282 million, non-GAAP, net of noncontrolling interests impacts) related to the enactment of new tax legislation, Net income available to TDS common shareholders and related diluted earnings per share excluding adjustments (non-GAAP) were $6 million and $0.05, respectively for the three months ended December 31, 2017, compared to a Net loss available to TDS common shareholders and related diluted loss per share of $5 million and $0.05, respectively, in the same period one year ago. 

TDS reported total operating revenues of $5,044 million and $5,155 million for the years ended 2017 and 2016, respectively, and Net income available to TDS common shareholders and related diluted earnings per share were $153 million and $1.37, respectively, for the year ended 2017.  Excluding the benefit of $327 million ($282 million, non-GAAP, net of noncontrolling interests impacts) related to the enactment of new tax legislation and a loss on goodwill impairment of $262 million ($188 million, non-GAAP, net of tax and noncontrolling interest impacts) in the third quarter of 2017, Net income available to TDS common shareholders and related diluted earnings per share excluding adjustments (non-GAAP) were $59 million and $0.53, respectively for the year ended December 31, 2017, compared to Net income available to TDS common shareholders and related diluted earnings per share of $43 million and $0.39, respectively, for the year ended 2016.    

"In 2017, the TDS family of companies continued to act on our long-term strategic goals," said LeRoy T. Carlson, Jr., TDS President and CEO. "U.S. Cellular successfully balanced customer growth with profitability, while TDS Telecom implemented its broadband strategy of driving broadband revenue and margin growth in its wireline and cable segments.

"U.S. Cellular protected and grew its customer base through an award winning network and the successful marketing and sales of Total Plans, which include no hidden fees and an unlimited data option. With record low churn, the company achieved postpaid handset growth for the year. We continued to invest in U.S. Cellular's high-quality network by increasing capacity and launching VoLTE, which is now fully operational in Iowa and Wisconsin. Tower rental revenues, accessories sales and device protection plan sales, along with effective cost management all worked to partially offset competitive pricing pressures.

"TDS Telecom continued to grow broadband services, bundling these with video and voice services. Several years of fiber investments led to growth in IPTV connections and to increased demand for higher broadband speeds, generating residential wireline revenue growth. Network investments in our cable properties also continue to see success, driving strong increases in broadband connections and cable revenues. This quarter we accomplished our seventh consecutive quarter of double-digit broadband cable connections growth. We also signed several small cable acquisitions to strengthen our existing markets, and are continuing to seek attractive cable properties.