ITTI(TDS) - 2025 Q2 - Quarterly Results

Financial Performance - TDS reported total operating revenues of $1,186 million for Q2 2025, a decrease from $1,238 million in Q2 2024, representing a year-over-year decline of approximately 4.2%[4] - Net income attributable to TDS common shareholders was $(5) million, or $(0.05) per share, compared to $(14) million, or $(0.13) per share in the same period last year, showing an improvement in net loss[4] - Net income for the six months ended June 30, 2025, was $30 million, down 34% from $45 million in 2024[32] - Operating income for the three months ended June 30, 2025, was $40 million, an increase of 2% from $39 million in 2024[29] - TDS Telecom's net income was $16 million in Q2 2025, slightly down from $18 million in Q2 2024, a decrease of 11.1%[50] Revenue and Guidance - TDS has adjusted its full-year 2025 revenue guidance for TDS Telecom to a range of $1,030-$1,050 million, down from the previous estimate of $1,030-$1,070 million[12] - Adjusted EBITDA for TDS Telecom is estimated to be between $320-$350 million for 2025, revised from a previous range of $320-$360 million[12] - Total operating revenues for Array Digital Infrastructure, Inc. decreased by 1% to $916 million for the three months ended June 30, 2025, compared to $927 million in the same period of 2024[40] - Wireless segment revenues declined by 1% to $888 million for the three months ended June 30, 2025, down from $902 million in 2024[42] - TDS Telecom's total operating revenues decreased by 1% to $265 million for the three months ended June 30, 2025, compared to $267 million in 2024[44] Expenses and Cash Flow - Total operating expenses for the three months ended June 30, 2025, were $1,146 million, a decrease of 4% compared to $1,199 million in 2024[29] - Cash flows from operating activities for the six months ended June 30, 2025, were $607 million, compared to $626 million in 2024[32] - Cash flows from operating activities for TDS consolidated increased to $422 million for the three months ended June 30, 2025, compared to $403 million in 2024[46] Capital Expenditures - Capital expenditures for TDS Telecom are expected to remain unchanged at $375-$425 million for 2025[12] - Capital expenditures for Q2 2025 were $80 million, an increase from $53 million in Q1 2025[22] - Capital expenditures for Array Digital Infrastructure, Inc. decreased by 52% to $80 million for the three months ended June 30, 2025, compared to $165 million in 2024[40] Customer Metrics - The company delivered 27,000 marketable fiber service addresses in Q2 2025 and achieved 3,900 residential broadband net additions, with a total of 10,300 net adds from fiber markets[8] - Total broadband connections reached 557,700 in Q2 2025, with residential broadband net additions of 3,900[25] - Postpaid connections at the end of Q2 2025 totaled 3,904,000, a decrease of 42,000 from the previous quarter[22] - Total residential connections decreased to 924,500 in Q2 2025 from 932,300 in Q1 2025[25] Leadership Changes - Ken Dixon has joined TDS as the President and CEO of TDS Telecom, focusing on executing the fiber broadband strategy[8] Market and Operational Highlights - The company completed the sale of its wireless operations and select spectrum assets to T-Mobile for a total consideration of $4.3 billion, which includes cash and assumed debt[8] - Third-party tower revenues increased by 12% year-over-year, indicating growth in the tower business segment[8] - The total number of colocations increased to 2,527 in Q2 2025, up from 2,469 in Q1 2025[22] - The total number of cell sites in service increased to 7,061 in Q2 2025, up from 7,009 in Q1 2025[22] Churn and Revenue Metrics - Average Revenue Per User (ARPU) for postpaid was $51.91, slightly down from $52.06 in Q1 2025[22] - The churn rate for postpaid connections increased to 1.29% in Q2 2025 from 1.21% in Q1 2025[22] - The total residential fiber churn rate was 1.1% in Q2 2025, up from 0.9% in Q1 2025[25] - Residential revenue per connection rose to $65.85 in Q2 2025, compared to $65.67 in Q1 2025[25]