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UScellular Reports First Quarter Results for 2025

On May 2, 2025, United States Cellular Corporation (NYSE: USM) announced its financial results for the first quarter of 2025, reflecting a total operating revenue of $891 million, a decline from $950 million from the same period a year prior. The service revenue totaled $741 million, down from $754 million in Q1 2024. Despite the decrease, the company reported a noteworthy net income of $18 million, translating to diluted earnings per share of $0.21, an increase over the $0.20 from the previous year.

Key Highlights from Q1 2025

Among the updates from UScellular, several positive developments were noted:

• - Improved Postpaid Handset Results: The company saw an increase in gross additions of postpaid handsets, coupled with a reduction in net losses.
• - Growth in Third-Party Tower Rental Revenues: Revenues from third-party tower rentals rose by 6% year-over-year, demonstrating the value of UScellular's tower portfolio.
• - Advancements in Network Infrastructure: UScellular continues its commitment to enhancing its network, focusing on 5G mid-band deployment designed to provide greater capacity and speed improvements for both mobility and fixed wireless customers.

Laurent Therivel, President and CEO of UScellular, remarked on the company's strategic focus, stating, "In the first quarter, we continued to work towards executing on our 2025 priorities which include successfully closing on the previously announced sale of the wireless business, while remaining focused on investing in a strong customer experience and operating our business efficiently."

Strategic Transactions and Future Outlook

In a significant move, UScellular entered into a Securities Purchase Agreement with T-Mobile on May 24, 2024, to sell its wireless operations alongside select spectrum assets, expecting the deal to close mid-2025, pending regulatory approval.

Moreover, agreements have been established with notable telecommunications firms such as Verizon and New Cingular Wireless PCS (AT&T) to sell various spectrum licenses. These strategic actions reaffirm UScellular's commitment to navigating the evolving telecommunications landscape.

While the pending transaction with T-Mobile introduces uncertainty, UScellular has opted not to provide financial guidance for 2025. This decision reflects a careful evaluation of the potential impacts of the sales on their business operations.

Stock Repurchase Initiative

During the quarter, UScellular also executed a stock repurchase program, acquiring 328,835 shares at a cost of $21 million. This measure is part of the company's ongoing efforts to maximize shareholder value amid changing market conditions.

Upcoming Conference Call

To discuss these results and future strategies, UScellular invites investors to participate in a teleconference on May 2, 2025, at 9:00 a.m. Central Time. Investors can access the live call or the archived recording through the Events & Presentations section on investors.uscellular.com.

Conclusion

As UScellular navigates the dynamic telecommunications market, close attention will be paid to its ability to deliver on its strategic priorities while adapting to the industry's rapid evolution. The management is committed to a customer-centered approach, ensuring that service excellence remains at the core of its identity, even as it undergoes significant structural changes in the wake of impending transactions.

With an operational presence spanning across 21 states, UScellular continues to serve approximately 4.4 million retail connections, supported by a dedicated workforce. For further information on UScellular and its offerings, visit uscellular.com.