#United States #Chicago #Telecommunications #TDS #Array Digital Infrastructure

TDS Reports Second Quarter 2025 Results

Telephone and Data Systems, Inc. (TDS) has announced its financial results for the second quarter of 2025, revealing total operating revenues of $1.186 billion. The results show a slight decline compared to $1.238 billion for the same period in 2024. The company reported a net loss attributable to common shareholders of $5 million, translating to a diluted loss per share of $0.05, an improvement from the $14 million loss or $0.13 per share reported in the prior year.

Key Highlights

• - Corporate Changes: TDS has transitioned its subsidiary United States Cellular Corporation to Array Digital Infrastructure, Inc., marking a new era for the firm focusing on digital infrastructure.
• - Strategic Transactions: Last month, Array completed divesting its wireless operations to T-Mobile for a total of $4.3 billion, a deal comprising both cash and assumed debt.
• - Dividends Announced: A special dividend of $23.00 per share has been declared, which will be paid to shareholders on August 19, 2025.
• - Tower Revenues Growth: Revenues from third-party tower leasing increased by 12%, reflecting a positive trend in that segment.
• - Upcoming Spectrum Transactions: Pending agreements with AT&T and Verizon for spectrum transactions are slated to close in the second half of 2025 and the third quarter of 2026, respectively.

TDS Telecom Developments

Ken Dixon has officially taken role as President and CEO of TDS Telecom, steering its strategy toward fiber broadband expansion. In the second quarter of 2025, TDS delivered services to 27,000 new marketable fiber addresses, leading to 3,900 net additions in residential broadband and 10,300 new fiber connections. Notably, revenues in the TDS Telecom segment saw a decrease of 1%, influenced largely by divestitures of non-core assets.

Walter Carlson, President and CEO of TDS, commented, "We have made significant strides in our strategic goals. With the successful T-Mobile transaction, we reached a pivotal milestone in our transformation, setting the stage for ongoing growth and value creation in the tower business. The entry of Ken Dixon as CEO at this critical time for our fiber expansion injects optimism into our future direction."

Looking Forward in 2025

Despite the current estimates for total operating revenues for TDS Telecom being slightly adjusted to a range between $1.030 billion to $1.050 billion, the management remains optimistic. Adjusted OIBDA forecasts range from $310 million to $340 million, with adjusted EBITDA projected between $320 million to $350 million. Capital expenditures will remain unchanged in their estimates.

As TDS evolves strategically, it has made significant gains within its foundational operations while pivoting towards a more fiber-centric approach. These shifts highlight TDS's commitment to enhancing its infrastructure and positioning itself for future growth in an increasingly competitive landscape. Stakeholders and investors are encouraged to follow these developments closely as the company navigates its journey.

For more detailed financial information, investors are referred to the Events Presentations page at investors.tdsinc.com, where additional insights will be available, including access to their live conference call happening on August 11, 2025, at 9:00 a.m. CDT.