TDS reports second quarter 2023 results

Mann mit Smartphone und Tablet (Symbolbild). © metamorworks / iStock / Getty Images Plus / Getty Images

PR Newswire

CHICAGO, Aug. 4, 2023

CHICAGO, Aug. 4, 2023 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on August 4, 2023, at 9:00 a.m. CDT. 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 $1,267 million for the second quarter of 2023, versus $1,349 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(19) million and $(0.17), respectively, for the second quarter of 2023 compared to $18 million and $0.15, respectively, in the same period one year ago.

2Q 2023 Highlights*

UScellular

Focused on improving subscriber trajectory to reduce postpaid losses - made progress in reducing postpaid churn
Executing on growth initiatives

Fixed Wireless customers grew 66% to 96,000
Tower rental revenues grew 10%

Reduced debt balance by $150 million in 2Q'23
Launching 5G Mid-Band network - providing low latency and faster speeds

Ended June with availability in parts of Illinois, Iowa, Wisconsin, Maine, Missouri, Nebraska, Oklahoma, Oregon, Virginia and Washington

TDS Telecom

Delivered 66,000 fiber service addresses through June; remain on track to deliver 175,000 fiber addresses by end of 2023
Broadband investments driving positive results

Residential broadband connections grew 5%
Residential broadband revenues grew 8%
Residential revenue per connection grew 4%

Increased full-year Adjusted EBITDA and Adjusted OIBDA guidance due to disciplined spending
Modestly reduced full-year capital expenditures guidance

* Comparisons are 2Q'22 to 2Q'23 unless otherwise noted

ARIVA.DE Börsen-Geflüster

Kurse

Telephone and Data Systems Inc

15,89 $

+0,70%

"The TDS Family of Companies continues to execute on its multi-year strategies, while focusing intensely on cost containment," said LeRoy T. Carlson, Jr., TDS President and CEO. "UScellular has begun deploying mid-band 5G spectrum, and TDS Telecom is making solid progress on its fiber program.

"At UScellular, postpaid handset subscriber trends improved slightly year-over-year driven by improvements in churn, however, subscriber results remained challenged overall as gross additions declined. Two of UScellular's growth areas, fixed wireless and the tower portfolio, produced year-over-year double-digit increases in gross additions and revenues, respectively. In July, UScellular surpassed 100,000 fixed wireless customers – a key milestone as momentum for the product continues.

"TDS Telecom grew its residential revenue per connection and increased total residential broadband connections for the quarter. TDS Telecom continues to execute its broadband growth strategy through its multi-year fiber expansion program."

Recent Development: On August 4, 2023, TDS and UScellular announced a process to explore a range of strategic alternatives for UScellular.

2023 Estimated Results

TDS' current estimates of full-year 2023 results for UScellular and TDS Telecom are shown below. Such estimates represent management's view as of August 4, 2023 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

The 2023 Estimated Results shown below do not reflect any anticipated costs, expenses or results of the strategic review referenced above.

2023 Estimated Results

UScellular	Previous	Current
(Dollars in millions)
Service revenues	$3,050-$3,150	$3,025-$3,075
Adjusted OIBDA¹	$725-$875	$750-$850
Adjusted EBITDA¹	$875-$1,025	$925-$1,025
Capital expenditures	$600-$700	Unchanged

TDS Telecom	Previous	Current
(Dollars in millions)
Total operating revenues	$1,030-$1,060	Unchanged
Adjusted OIBDA¹	$260-$290	$270-$300
Adjusted EBITDA¹	$260-$290	$270-$300
Capital expenditures	$500-$550	$475-$525

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2023 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

	2023 Estimated Results
	UScellular	TDS Telecom
(Dollars in millions)
Net income (GAAP)	N/A	N/A
Add back:
Income tax expense	N/A	N/A
Income before income taxes (GAAP)	$50-$150	$40-$70
Add back:
Interest expense	200	—
Depreciation, amortization and accretion expense	655	230
EBITDA (Non-GAAP)¹	$905-$1,005	$270-$300
Add back or deduct:
(Gain) loss on asset disposals, net	20	—
Adjusted EBITDA (Non-GAAP)¹	$925-$1,025	$270-$300
Deduct:
Equity in earnings of unconsolidated entities	160	—
Interest and dividend income	15	—
Adjusted OIBDA (Non-GAAP)¹	$750-$850	$270-$300

Actual Results

Six Months Ended

June 30, 2023

Year Ended

December 31, 2022

UScellular

TDS

Telecom

Mehr Nachrichten zur Telephone and Data Systems Inc Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.