ITTI(US:TDS)2021-05-07 19:39Financial Data and Key Metrics Changes - Total operating revenues for Q1 2021 were $1.023 billion, an increase of $60 million or 6% year-over-year [35] - Adjusted operating income was $258 million, reflecting a 12% increase year-over-year [40] - Adjusted EBITDA for the quarter was $302 million, an increase of $21 million or 8% year-over-year [44] Business Line Data and Key Metrics Changes - Retail service revenues increased by $14 million to $685 million, driven by higher average revenue per user and an increase in average postpaid subscribers [35] - Total broadband residential connections grew by 10% in the quarter, with residential broadband revenue increasing by 16% [53][60] - Equipment sales revenues increased by $51 million year-over-year due to an increase in units sold and higher-priced units [36] Market Data and Key Metrics Changes - Postpaid churn rate was 0.92%, down from 0.95% a year ago, indicating improved customer retention [34] - Total broadband penetration increased by 100 basis points to 38% [52] - The company added 13,000 fiber service addresses to its footprint, continuing its fiber strategy [47] Company Strategy and Development Direction - The company is focused on network modernization, 5G deployment, and fiber expansion as key strategic imperatives [19][16] - A new master lease agreement with DISH Wireless is expected to contribute to tower revenue growth starting in 2022 [20] - The company aims to leverage existing networks and construct greenfield fiber in opportunistic locations to drive growth [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive landscape, noting that promotional activity is expected to remain device-related rather than service-related [23] - The company is closely monitoring supply chain issues, particularly concerning chipsets and network supplies, but has not yet seen significant impacts [74][76] - The management is confident in the fiber strategy, having already fibered up 38% of its wireline service addresses [57] Other Important Information - The company redeemed $800 million in senior notes to lower interest expenses [13] - The company continues to return value to shareholders through dividends and opportunistic share repurchases [17] - The company is actively participating in various government broadband funding programs, including the FCC's A-CAM program [101] Q&A Session Summary Question: Guidance and Subscriber Growth - The company expects to achieve positive postpaid phone adds in future quarters, focusing on growing market share [70] Question: TDS Telecom's Guidance - The company is ramping up construction in fiber deployment, which will incur higher costs but is expected to drive new growth revenue [72] Question: Supply Chain Concerns - Management is monitoring supply chain issues, particularly with chipsets, but currently sees no significant impact on operations [74][76] Question: Involuntary Churn Trends - There has been a slight uptick in involuntary churn, but it remains in line with expectations as the market reopens [81] Question: Fiber Construction Acceleration - The company is focused on scaling up operations and is confident in its fiber strategy, having a significant head start over competitors [85] Question: Infrastructure Bill and Broadband Funding - The company is watching the infrastructure proposal closely and expects the broadband portion to survive the legislative process [99]