In This Article:
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Capital Expenditures: Down 24% for the full year on a consolidated level.
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Free Cash Flow: Increased in 2024; $280 million, an $88 million increase over 2023.
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Adjusted EBITDA: Up 7% for the full year on a consolidated basis; increased 3% or $32 million for UScellular.
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Debt Reduction: Over $200 million paid down at UScellular.
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Service Revenues: Declined 2% for the fourth quarter.
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Postpaid Handset Gross Additions: Increased year over year by 16%.
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Postpaid Handset Churn: Decreased 14 basis points.
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Cash Distributions from Unconsolidated Entities: $169 million in 2024.
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Residential Revenues (TDS Telecom): Increased 6% in 2024.
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Adjusted EBITDA (TDS Telecom): Increased 23% year over year.
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Fiber Service Addresses (TDS Telecom): Increased by 129,000 in 2024.
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Capital Expenditures (TDS Telecom): $324 million for the full year.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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United States Cellular Corp (NYSE:USM) improved subscriber results and financials in 2024, despite a competitive environment.
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The company executed strategic transactions, including the sale of its wireless business to T-Mobile, expected to deliver substantial proceeds.
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USM strengthened its balance sheet by paying down over $200 million in debt and increased free cash flow by $88 million over 2023.
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The company successfully rolled out mid-band 5G to cover close to 50% of its data traffic, enhancing customer experience.
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USM's tower business remains strong, with plans to add over 2,000 co-locations, indicating future growth potential.
Negative Points
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Despite improvements, net retail subscriber additions were still negative, highlighting ongoing challenges in the competitive market.
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Service revenues declined by 2% in the fourth quarter, primarily due to a decrease in the average retail subscriber base.
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The company faces significant cash obligations related to employee liabilities and tax obligations from the T-Mobile transaction.
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USM's postpaid handset net additions remain negative, despite efforts to improve customer care and network investments.
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The company is not issuing financial guidance for 2025 due to uncertainties surrounding the pending T-Mobile transaction.
Q & A Highlights
Q: Why was now the right time for Walter Carlson to take on the CEO role, and what changes are expected with his leadership? A: Walter Carlson, President and CEO of TDS, explained that the Board had been planning a succession for some time, and with the transformative sale of wireless operations to T-Mobile, it was deemed the right moment for a leadership change. He emphasized continuity in mission and focus on the fiber and tower businesses post-transactions.