ITTI(US:TDS)2021-08-06 21:00Financial Data and Key Metrics Changes - The effective tax rate was a negative 48.9% during the quarter due to the reduction of certain tax accruals and the redemption of high-cost debt, resulting in an additional $36 million non-cash interest expense [8] - Total operating revenues for the second quarter were $1.014 billion, an increase of $41 million or 4% year-over-year [26] - Adjusted operating income was $218 million, a decrease of 7% year-over-year [31] - Adjusted EBITDA for the quarter was $267 million, a decrease of $13 million or 5% year-over-year [34] Business Line Data and Key Metrics Changes - Postpaid handset gross additions increased by 16,000 year-over-year due to higher switching activity [23] - Prepaid base increased by 11,000 due to an increase in gross additions combined with a decrease in defections [24] - Retail service revenues increased by $28 million to $686 million, primarily due to a higher average revenue per user [26] - Equipment sales revenues increased by $20 million year-over-year due to an increase in units sold and accessory sales [27] Market Data and Key Metrics Changes - Total residential broadband revenues grew 16% in the quarter, driving total residential revenue growth of 10% [36] - Total telecom broadband residential connections grew 7% in the quarter [38] - The average residential revenue per connection increased by 7% due to price increases and product mix [36] Company Strategy and Development Direction - The company is focused on profitable growth and leveraging a regionally focused strategy to test different offers [15] - Continued investment in network modernization and 5G deployment is critical for maintaining operational flexibility [30] - The company is committed to expanding its fiber footprint and increasing market share in broadband services [42] Management's Comments on Operating Environment and Future Outlook - Management noted aggressive promotions in the competitive environment impacting postpaid subscriber results [14] - There is optimism regarding the bipartisan infrastructure legislation that could support broadband expansion [19] - Management expects the aggressive promotional environment to persist for the remainder of 2021 [29] Other Important Information - The company has maintained its full-year guidance for service revenues and adjusted operating income [35] - The company is experiencing strong broadband growth driven by work-at-home trends and population migration [36] Q&A Session Summary Question: What caused the thought that partnerships could help U.S. Cellular? - Management discussed partnerships aimed at growing revenue and managing costs, including local dealer partnerships and fleet management services [56] Question: When do we think you could move from trialing fixed wireless access to launching? - Management indicated that if trials continue to perform well, a market launch could occur by next year [62] Question: What is the outlook for roaming revenues? - Management projected a decline in roaming revenue for the remainder of 2021 due to the Sprint merger and migration to T-Mobile's network [71] Question: What are the opportunities in the business and government market? - Management noted that the business and government market represents significant growth potential, with efforts to enhance distribution and service offerings [85] Question: How is the competitive landscape with T-Mobile? - Management observed that while T-Mobile is expanding, market share has remained constant, indicating that aggressive marketing does not always translate to network deployment [91]