Tower business

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USM's Q2 Earnings Beat Estimates Despite Lower Revenues
ZACKSยท 2025-08-12 16:41
Core Insights - Array Digital Infrastructure, Inc. (formerly U.S. Cellular) reported strong Q2 2025 results, with both revenue and net income exceeding Zacks Consensus Estimates, despite a year-over-year revenue decline due to reduced retail connections [1][9] Financial Performance - Net income for the quarter was $31 million, or $0.36 per share, compared to $17 million, or $0.20 per share, in the same quarter last year, beating estimates by $0.03 [2][9] - Operating revenues totaled $916 million, down from $927 million year-over-year, but still surpassing the Zacks Consensus Estimate of $904 million [3][9] - Service revenues decreased to $736 million from $743 million, while equipment sales generated $180 million compared to $184 million in the prior-year quarter [3] Business Segments - The tower business showed healthy momentum, generating $62 million in revenues, a 7% increase year-over-year, while wireless revenue was $888 million, down 1% year-over-year [4] - Handset connections fell to 70,000 from 73,000 year-over-year, with a churn rate of 1.12%, up from 0.97% [5] - Total postpaid connections decreased to 3,904,000 from 4,027,000, and total prepaid connections were 429,000, down from 439,000 [5] Revenue Metrics - Postpaid average revenue per account (ARPA) improved to $131.89 from $130.41, while postpaid ARPU rose to $51.91 from $51.45 [6] - Prepaid ARPU decreased to $31.72 from $32.37, with a churn rate of 3.58%, down from 3.6% [6] Operational Efficiency - Adjusted EBITDA for the quarter was $254 million, down from $268 million year-over-year, with total operating expenses at $881 million, a 1% decrease [7] - Operating income was reported at $35 million, slightly down from $36 million in the prior-year quarter [7] Cash Flow and Liquidity - Cash generated from operating activities was $325 million, compared to $313 million in the year-ago quarter, with cash and cash equivalents at $386 million and long-term debt at $2.81 billion as of June 30, 2025 [8]