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TDS Reports Fourth Quarter and Full Year 2024 Financial Results

TDS (Telephone and Data Systems, Inc.) has announced its financial results for the fourth quarter and total year of 2024, revealing both challenges and strategic advancements. The company recorded total operating revenues of $1.240 billion for Q4 2024, a decline from the $1.313 billion seen in the same quarter of 2023. This drop is accompanied by a net income loss attributed to common shareholders of $11 million, translating to a diluted loss per share of $0.10. In comparison, the same quarter last year revealed a staggering net loss of $523 million, or $4.64 per share.

For the entirety of the year, TDS reported total operating revenues of $4.964 billion, compared to $5.160 billion for 2023. The net loss attributable to common shareholders amounted to $97 million, indicating significant recovery from a loss of $569 million in 2023.

Significant non-cash charges related to goodwill impairment impacted financial performance, particularly in Q4 of 2023, where such a charge was $547 million. Excluding this impairment, the adjusted net income for Q4 reflects a loss of $12 million. Meanwhile, TDS Telecom has exceeded its fiber expansion goals, delivering 129,000 fiber service addresses and seeing a growth of 6% in its footprint.

UScellular Performance Highlights

UScellular has also made strides in its operational results. The mobile network operator worked on enhancing its wireless operating results through strategic alternatives reviews. The company experienced improvements in postpaid and prepaid net losses and bragged about a 27% increase in fixed wireless customers. The transition towards a mid-band 5G network has allowed UScellular to provide enhanced service capabilities.

Strategic Transactions

TDS has outlined key transactions during the year, including a significant agreement to divest UScellular's wireless operations and selected spectrum assets to T-Mobile, expected to conclude mid-2025. Various spectrum transactions involving Verizon and AT&T have also been announced, reinforcing UScellular's stance in the competitive wireless landscape.

2025 Financial Outlook

Looking forward, TDS has provided guidance for 2025, estimating total operating revenues in the range of $1.030 billion to $1.070 billion for TDS Telecom. This is expected to reflect a modest increase compared to the $1.061 billion achieved in 2024. Adjusted EBITDA forecasts range from $320 million to $360 million, alongside planned capital expenditures of $375 million to $425 million.

Walter C. D. Carlson, President and CEO of TDS, stated, "Throughout 2024, we advanced significantly in the strategic review of alternatives at UScellular. We intend to continue fiber expansion and enhance our network capabilities, ensuring robust service delivery to our customers."

The company aims to introduce its fiber-rich network to over 150,000 new marketable service addresses across the U.S. in 2025, aligning with the FCC's ongoing programs.

In conclusion, TDS has seen various ups and downs throughout the fiscal year but remains committed to expanding its market presence and improving its service delivery. The upcoming years are filled with potential transformative growth and operational efficiency, particularly as the company executes its ambitious fiber broadband strategy and navigates the competitive telecommunications sector.