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UScellular reports fourth quarter and full year 2024 results
USMU.S. Cellular(USM) Prnewswire·2025-02-21 12:31

Core Insights - UScellular reported total operating revenues of 970millionforQ42024,adecreaseof3970 million for Q4 2024, a decrease of 3% from 1,000 million in Q4 2023 [1][20] - The net income attributable to UScellular shareholders for Q4 2024 was 5million,downfrom5 million, down from 14 million in Q4 2023, resulting in diluted earnings per share of 0.05comparedto0.05 compared to 0.16 in the prior year [1][28] - For the full year 2024, total operating revenues were 3,770million,adeclineof33,770 million, a decline of 3% from 3,906 million in 2023, with a net loss of 39millioncomparedtoaprofitof39 million compared to a profit of 54 million in 2023 [2][28] Financial Performance - Operating revenues for Q4 2024 included service revenues of 742millionandequipmentsalesof742 million and equipment sales of 228 million, reflecting a 2% and 7% decrease respectively compared to Q4 2023 [20][24] - Operating expenses remained stable at 979millionforQ42024,withanotablelossonimpairmentoflicensesrecordedat979 million for Q4 2024, with a notable loss on impairment of licenses recorded at 136 million for the full year [20][26] - Adjusted EBITDA for Q4 2024 was 208million,down11208 million, down 11% from 233 million in Q4 2023, while full-year adjusted EBITDA increased by 3% to 1,018million[24][29]SubscriberMetrics−UScellularexperiencedanetlossof14,000postpaidsubscribersinQ42024,althoughgrossadditionsimprovedto140,000[16][11]−Thechurnrateforpostpaidsubscriberswas1.081,018 million [24][29] Subscriber Metrics - UScellular experienced a net loss of 14,000 postpaid subscribers in Q4 2024, although gross additions improved to 140,000 [16][11] - The churn rate for postpaid subscribers was 1.08% in Q4 2024, slightly improved from 1.22% in Q4 2023 [16][11] - Fixed wireless customers grew by 27% year-over-year, indicating a positive trend in this segment despite overall subscriber losses [11] Strategic Transactions - UScellular announced a significant transaction to sell its wireless operations and select spectrum assets to T-Mobile, expected to close in mid-2025, pending regulatory approval [6][8] - Additional spectrum sales agreements were made with Verizon and AT&T, further indicating a strategic shift in asset management [7][8] - The company did not provide financial guidance for 2025 due to the pending transaction with T-Mobile [8] Shareholder Actions - In 2024, UScellular repurchased 939,999 common shares for 55 million, reflecting a commitment to enhancing shareholder value [9][5] - The company emphasized maintaining strong financial discipline, resulting in solid growth in profitability and free cash flow [5][11]