ITTI(TDS) - 2025 Q1 - Quarterly Results

Financial Performance - TDS reported total operating revenues of $1,154 million for Q1 2025, a decrease of 8.6$1,262 million in Q1 2024[4] - Net income attributable to TDS common shareholders was $(10) million, resulting in a diluted loss per share of$(0.09), compared to a net income of $12 million and earnings per share of$0.10 in the same period last year[4] - UScellular reported operating revenues of $891 million for Q1 2025, a decrease of 6$950 million in Q1 2024[28] - TDS Telecom's operating revenues were $257 million in Q1 2025, down 3$266 million in Q1 2024[28] - Net income for the three months ended March 31, 2025, was $12 million, a decrease of 68.4$38 million in the same period of 2024[31] - Total operating revenues for UScellular decreased by 6% to $891 million in Q1 2025, down from$950 million in Q1 2024[39] - Adjusted EBITDA for UScellular was $254 million, reflecting a 7$272 million in the previous year[39] - TDS Telecom's net income for Q1 2025 was $4 million, significantly down from$24 million in Q1 2024[50] - UScellular's net income for Q1 2025 was $20 million, a decrease from$24 million in Q1 2024[48] Customer Metrics - TDS Telecom added 14,000 marketable fiber service addresses in Q1 2025, contributing to ongoing fiber deployment efforts[5] - The company reported 2,800 residential broadband net additions in Q1 2025, with 8,300 coming from fiber markets[10] - Total residential connections decreased to 931,400 in Q1 2025 from 956,100 in Q1 2024, reflecting a decline in broadband and voice connections[25] - Total broadband connections increased slightly to 555,800 in Q1 2025, compared to 547,900 in Q1 2024[25] - The churn rate for residential fiber connections was 0.9% in Q1 2025, an improvement from 1.0% in Q4 2024[25] - Average Revenue Per User (ARPU) for postpaid customers increased to $52.06 in Q1 2025, up from$51.96 in Q1 2024[23] Capital Expenditures and Cash Flow - Capital expenditures for UScellular were $53 million in Q1 2025, significantly lower than$162 million in Q4 2024[25] - Capital expenditures for UScellular dropped significantly by 60% to $53 million in Q1 2025, compared to$131 million in Q1 2024[39] - TDS consolidated free cash flow for Q1 2025 was $47 million, compared to a negative$20 million in Q1 2024[45] - UScellular's free cash flow increased to $79 million in Q1 2025 from$61 million in Q1 2024[45] - TDS consolidated cash flows from operating activities were $186 million in Q1 2025, down from$224 million in Q1 2024[45] Strategic Initiatives and Changes - TDS is undergoing foundational changes in its remaining businesses, focusing on enhancing customer experience and improving margins over time[5] - UScellular is not providing financial guidance for 2025 due to the pending transaction with T-Mobile[9] - The expected closing of the sale of UScellular's wireless operations to T-Mobile is anticipated in mid-2025, pending regulatory approval[6] - TDS is focusing on strategic alternatives, with expenses related to this review amounting to $10 million for UScellular in Q1 2025, up from$7 million in Q1 2024[48] Assets and Liabilities - Total assets as of March 31, 2025, were $13,536 million, a decrease from$13,682 million at the end of 2024[33] - Total current liabilities decreased to $960 million as of March 31, 2025, from$1,090 million at the end of 2024[35] - TDS shareholders' equity decreased to $5,078 million as of March 31, 2025, from$5,091 million at the end of 2024[35]