UScellular reports fourth quarter and full year 2024 results

Core Insights - UScellular reported total operating revenues of $970 million for Q4 2024, a decrease of 3% from $1,000 million in Q4 2023 [1][20] - The net income attributable to UScellular shareholders for Q4 2024 was $5 million, down from $14 million in Q4 2023, resulting in diluted earnings per share of $0.05 compared to $0.16 in the prior year [1][28] - For the full year 2024, total operating revenues were $3,770 million, a decline of 3% from $3,906 million in 2023, with a net loss of $39 million compared to a profit of $54 million in 2023 [2][28] Financial Performance - Operating revenues for Q4 2024 included service revenues of $742 million and equipment sales of $228 million, reflecting a 2% and 7% decrease respectively compared to Q4 2023 [20][24] - Operating expenses remained stable at $979 million for Q4 2024, with a notable loss on impairment of licenses recorded at $136 million for the full year [20][26] - Adjusted EBITDA for Q4 2024 was $208 million, down 11% from $233 million in Q4 2023, while full-year adjusted EBITDA increased by 3% to $1,018 million [24][29] Subscriber Metrics - UScellular experienced a net loss of 14,000 postpaid subscribers in Q4 2024, although gross additions improved to 140,000 [16][11] - The churn rate for postpaid subscribers was 1.08% in Q4 2024, slightly improved from 1.22% in Q4 2023 [16][11] - Fixed wireless customers grew by 27% year-over-year, indicating a positive trend in this segment despite overall subscriber losses [11] Strategic Transactions - UScellular announced a significant transaction to sell its wireless operations and select spectrum assets to T-Mobile, expected to close in mid-2025, pending regulatory approval [6][8] - Additional spectrum sales agreements were made with Verizon and AT&T, further indicating a strategic shift in asset management [7][8] - The company did not provide financial guidance for 2025 due to the pending transaction with T-Mobile [8] Shareholder Actions - In 2024, UScellular repurchased 939,999 common shares for $55 million, reflecting a commitment to enhancing shareholder value [9][5] - The company emphasized maintaining strong financial discipline, resulting in solid growth in profitability and free cash flow [5][11]