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U.S. Cellular's Q4 Earnings Beat Estimate, Revenues Decline Y/Y
USMU.S. Cellular(USM) ZACKS·2025-02-24 17:30

Core Insights - U.S. Cellular Corporation (USM) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding Zacks Consensus Estimates despite a year-over-year revenue decline due to reduced retail connections [1][4]. Financial Performance - The company generated 970millioninoperatingrevenues,downfrom970 million in operating revenues, down from 1 billion in the prior-year quarter, but surpassed the Zacks Consensus Estimate of 945million[4].−Netincomeforthequarterwas945 million [4]. - Net income for the quarter was 5 million (5 cents per share), compared to 14million(16centspershare)inthesamequarterlastyear,beatingtheZacksConsensusEstimateby15cents[3].−Forthefullyear2024,totalrevenueswerereportedat14 million (16 cents per share) in the same quarter last year, beating the Zacks Consensus Estimate by 15 cents [3]. - For the full year 2024, total revenues were reported at 3.77 billion, a decrease from 3.906billionin2023[4].RevenueBreakdown−Servicerevenuesdecreasedto3.906 billion in 2023 [4]. Revenue Breakdown - Service revenues decreased to 742 million from 755millionyear−over−year,exceedingtheZacksConsensusEstimateof755 million year-over-year, exceeding the Zacks Consensus Estimate of 726.4 million [5]. - Equipment sales generated 228million,downfrom228 million, down from 245 million in the prior-year quarter [5]. Customer Metrics - Fixed wireless customers increased by 27% year-over-year to 145,000, contributing positively to revenue [6]. - Total postpaid connections fell to 3,985,000 from 4,106,000 year-over-year, while total prepaid connections decreased slightly to 448,000 from 451,000 [7]. Churn and ARPU - The postpaid churn rate improved to 1.29% from 1.44% a year ago, while prepaid churn decreased to 3.70% from 3.87% [8]. - Postpaid average revenue per user (ARPU) rose to 51.73from51.73 from 51.61, while prepaid ARPU fell to 30.59from30.59 from 32.32 [8]. Operational Metrics - Adjusted EBITDA for the quarter was 208million,downfrom208 million, down from 233 million in the prior-year quarter [9]. - Total operating expenses remained stable at 979million,resultinginanoperatinglossof979 million, resulting in an operating loss of 9 million compared to an operating income of 21millioninthepreviousyear[9].CashFlowandLiquidity−CashgeneratedfromoperatingactivitiesintheDecemberquarterwas21 million in the previous year [9]. Cash Flow and Liquidity - Cash generated from operating activities in the December quarter was 121 million, down from 148millionyear−over−year,whiletotalcashfromoperationsfor2024was148 million year-over-year, while total cash from operations for 2024 was 883 million compared to 866millionin2023[10].−AsofDecember31,2024,thecompanyhad866 million in 2023 [10]. - As of December 31, 2024, the company had 144 million in cash and cash equivalents and 2.83billioninlong−termdebt,comparedto2.83 billion in long-term debt, compared to 150 million and $3.04 billion, respectively, at the end of the prior year [11].