ITTI(US:TDS)2024-05-03 11:35Financial Performance - TDS reported total operating revenues of $1,262 million for Q1 2024, a decrease of 3.2% from $1,303 million in Q1 2023[3] - Net income attributable to TDS common shareholders was $12 million, compared to a net loss of $(9) million in the same period last year, resulting in diluted earnings per share of $0.10[3] - Net income attributable to TDS shareholders increased to $29 million in Q1 2024, compared to $8 million in Q1 2023[29] - Net income for the three months ended March 31, 2024, increased to $38 million, compared to $12 million in the same period of 2023, representing a 216.67% increase[32] - Total operating revenues for the three months ended March 31, 2024, were $266 million, up 5% from $253 million in the same period of 2023[40] - Free cash flow for TDS consolidated was $(20) million for the three months ended March 31, 2024, an improvement from $(293) million in the same period of 2023[42] - Cash flows from operating activities for TDS consolidated increased to $224 million in Q1 2024, compared to $46 million in Q1 2023[42] - The overall financial performance indicates strong growth and improved profitability metrics year-over-year[45] Revenue and Growth Metrics - UScellular's service revenues decreased by 2%, while postpaid ARPU grew by 3%[8] - Operating revenues for TDS Telecom grew by 5%, with residential revenues increasing by 10% year-over-year[8] - Total operating revenues for UScellular decreased by 4% to $950 million in Q1 2024 compared to $986 million in Q1 2023[29] - TDS Telecom's operating revenues increased by 5% to $266 million in Q1 2024, compared to $253 million in Q1 2023[29] - The company reported a 71% increase in expansion residential revenues, rising to $26 million in Q1 2024 from $15 million in Q1 2023[40] Customer Metrics - UScellular reported a total of 4,051,000 postpaid connections at the end of Q1 2024, a decrease of 1.3% from 4,106,000 in Q4 2023[22] - The average revenue per user (ARPU) for postpaid increased to $51.96 in Q1 2024, up from $51.61 in Q4 2023, reflecting a growth of 0.68%[22] - Total residential broadband connections increased by 8,100 during Q1 2024, reaching 547,900[26] - The churn rate for postpaid connections improved to 1.22% in Q1 2024, down from 1.44% in Q4 2023[22] - UScellular's postpaid churn rate was reduced by 4%, and fixed wireless customers increased by 42% to 124,000[8] Capital Expenditures and Investments - Adjusted EBITDA for UScellular is estimated to be between $920 million and $1,020 million for 2024, with capital expenditures projected at $550 million to $650 million[11] - TDS Telecom deployed an additional 28,000 marketable fiber service addresses in Q1 2024 and is on track to deliver 125,000 new addresses by the end of 2024[8] - Long-term debt, net, increased to $4,164 million as of March 31, 2024, compared to $4,080 million as of December 31, 2023[36] - Capital expenditures for UScellular were $131 million in Q1 2024, a decrease from $148 million in Q4 2023[22] Operational Improvements - Operating income for TDS Telecom for the three months ended March 31, 2024, was $27 million, compared to $8 million in the same period of 2023, indicating significant operational improvement[40] - Adjusted EBITDA (Non-GAAP) rose to $95 million in Q1 2024, up from $69 million in Q1 2023, reflecting a 37.68% increase[45] - Operating income (GAAP) improved to $27 million in Q1 2024 compared to $8 million in Q1 2023, marking a 237.5% increase[45] - The company reported an adjusted OIBDA (Non-GAAP) of $93 million in Q1 2024, up from $68 million in Q1 2023, a growth of 36.76%[45] Strategic Initiatives - TDS is actively exploring strategic alternatives for UScellular, with the review process ongoing[8]