TDS reports first quarter 2025 results

By PR Newswire | May 02, 2025, 7:30 AM

CHICAGO, May 2, 2025 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on May 2, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,154 million for the first quarter of 2025, versus $1,262 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(10) million and $(0.09), respectively, for the first quarter of 2025 compared to $12 million and $0.10, respectively, in the same period one year ago.

Recent Highlights*

UScellular

  • Improved postpaid handset results
    • Postpaid handset gross additions increased; postpaid handset net losses improved
  • Third-party tower rental revenues increased 6%
  • Ongoing 5G mid-band network deployment
    • Providing capacity and enhanced speed for our mobility and fixed wireless customers

TDS Telecom

  • TDS Telecom revenues down 3%, impacted by 2024 divestitures of non-strategic assets
  • Executing on fiber broadband strategy
    • Delivered 14,000 marketable fiber services addresses in Q1
    • Added 2,800 residential broadband net additions; 8,300 from fiber markets

* Comparisons are 1Q'24 to 1Q'25 unless otherwise noted

"As we work towards the expected mid-2025 closing of the sale of the wireless operations, the remaining businesses – fiber and towers – are making foundational changes that will support TDS' transformation," said Walter Carlson, TDS President and CEO. "In the first quarter, TDS and TDS Telecom results were impacted from the prior year divestitures of non-strategic assets, including the sale of One Neck and certain ILECs. TDS Telecom is continuing its fiber deployment adding 14,000 marketable fiber service addresses in the quarter while also investing in programs to streamline operations, enhance the customer experience and improve margins over time. And the tower business is continuing to grow the number of colocations and revenues, with third-party tower revenues increasing 6% in the quarter." 

Announced Transactions and Exploration of Strategic Alternatives for UScellular

On May 24, 2024, TDS and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approval and the satisfaction of customary closing conditions. When the proposed T-Mobile transaction closes, UScellular expects the UScellular Board of Directors to declare the first of potentially several, special dividends to UScellular shareholders.

On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.

On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T, Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.

Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.

2025 Estimated Results

TDS' current estimates of full-year 2025 results for TDS Telecom are shown below. Such estimates represent management's view as of May 2, 2025 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

2025 Estimated Results



TDS Telecom

Previous

Current

(Dollars in millions)





Total operating revenues

$1,030-$1,070

Unchanged

Adjusted OIBDA1 (Non-GAAP)

$310-$350

Unchanged

Adjusted EBITDA(Non-GAAP)

$320-$360

Unchanged

Capital expenditures

$375-$425

Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2025 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.



2025 Estimated

Results



Actual Results

TDS Telecom



Three Months Ended

March 31, 2025



Year Ended

December 31, 2024

(Dollars in millions)











Net income (GAAP)

N/A



$                                   4



$                                 85

Add back:











Income tax expense

N/A



1



35

Income before income taxes (GAAP)

$20-$60



$                                   5



$                               120

Add back:











Interest expense



(1)



(5)

Depreciation, amortization and accretion expense

300



71



271

EBITDA (Non-GAAP)1

$320-$360



$                                 75



$                               385

Add back or deduct:











Loss on impairment of intangible assets





1

(Gain) loss on asset disposals, net



2



12

(Gain) loss on sale of business and other exit costs, net





(49)

Adjusted EBITDA (Non-GAAP)1

$320-$360



$                                 76



$                               350

Deduct:











Interest and dividend income

5



1



5

Other, net

5



2



4

Adjusted OIBDA (Non-GAAP)1

$310-$350



$                                 73



$                               340



Numbers may not foot due to rounding.





1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.

Conference Call Information

TDS will hold a conference call on May 2, 2025 at 9:00 a.m. Central Time.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS

Telephone and Data Systems, Inc. (TDS) provides wireless, broadband, video and voice to approximately 5.5 million connections nationwide through its businesses, UScellular and TDS Telecom. Founded in 1969 and headquartered in Chicago, TDS employed approximately 7,800 associates as of March 31, 2025.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations, including with respect to the expected closing date of the transaction with T-Mobile. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS' businesses; intense competition; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.   

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com

UScellular: www.uscellular.com

TDS Telecom: www.tdstelecom.com

 

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

3/31/2025



12/31/2024



9/30/2024



6/30/2024



3/31/2024

Retail Connections



















Postpaid



















Total at end of period1

3,946,000



3,985,000



3,999,000



4,027,000



4,051,000

Gross additions

105,000



140,000



123,000



117,000



106,000

Handsets

68,000



93,000



84,000



73,000



63,000

Connected devices

37,000



47,000



39,000



44,000



43,000

Net additions (losses)1

(39,000)



(14,000)



(28,000)



(24,000)



(44,000)

Handsets

(38,000)



(19,000)



(28,000)



(29,000)



(47,000)

Connected devices

(1,000)



5,000





5,000



3,000

ARPU2

$        52.06



$        51.73



$        52.04



$        51.45



$        51.96

ARPA3

$      132.25



$      131.10



$      131.81



$      130.41



$      132.00

Handset upgrade rate4

3.1 %



4.8 %



3.5 %



4.1 %



4.5 %

Churn rate5

1.21 %



1.29 %



1.25 %



1.16 %



1.22 %

Handsets

1.03 %



1.08 %



1.07 %



0.97 %



1.03 %

Connected devices

2.40 %



2.67 %



2.47 %



2.47 %



2.52 %

Prepaid



















Total at end of period1

431,000



448,000



452,000



439,000



436,000

Gross additions

38,000



46,000



57,000



50,000



41,000

Net additions (losses)1

(17,000)



(4,000)



13,000



3,000



(13,000)

ARPU2

$        30.76



$        30.59



$        32.01



$        32.37



$        32.25

Churn rate5

4.17 %



3.70 %



3.30 %



3.60 %



4.06 %

Market penetration at end of period



















Consolidated operating population

31,390,000



32,550,000



32,550,000



32,550,000



32,550,000

Consolidated operating penetration6

17 %



15 %



15 %



15 %



14 %

Capital expenditures (millions)

$              53



$           162



$           120



$           165



$           131

Total cell sites in service

7,009



7,010



7,007



6,990



6,995

Owned towers

4,413



4,409



4,407



4,388



4,382

Number of colocations7

2,469



2,444



2,418



2,392



2,397

Tower tenancy rate8

1.56



1.55



1.55



1.55



1.55







1

First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter.





2

Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:







Postpaid ARPU consists of total postpaid service revenues and postpaid connections.









Prepaid ARPU consists of total prepaid service revenues and prepaid connections.







3

Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.





4

Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.





5

Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.





6

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.





7

Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.





8

Average number of tenants that lease space on company-owned towers, measured on a per-tower basis. 

 

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

3/31/2025



12/31/2024



9/30/2024



6/30/2024



3/31/2024

Residential connections



















Broadband



















Incumbent Fiber

119,700



118,500



115,900



113,100



109,800

Incumbent Copper

112,600



116,900



125,600



130,600



135,300

Expansion Fiber

133,200



126,100



115,300



107,800



100,400

Cable

190,200



191,500



195,900



198,500



202,400

Total Broadband1

555,800



553,000



552,700



550,000



547,900

Video

118,700



121,000



122,100



124,800



128,800

Voice

256,900



261,600



271,300



275,600



279,400

Total Residential connections

931,400



935,600



946,100



950,400



956,100

Commercial connections

187,600



190,500



197,200



201,500



206,200

Total connections2

1,119,000



1,126,100



1,143,300



1,152,000



1,162,200





















Total residential broadband net adds

2,800



7,900



2,700



2,100



6,400





















Residential fiber churn3

0.9 %



1.0 %



1.3 %



1.2 %



1.0 %

Total residential broadband churn

1.3 %



1.4 %



1.7 %



1.7 %



1.4 %





















Residential revenue per connection4

$        65.67



$        64.72



$        65.41



$        65.26



$        64.58





















Capital expenditures (millions)

$             59



$             82



$             78



$             78



$             87





Numbers may not foot due to rounding.





1

Total residential broadband connections increased by 8,100 during the three months ended March 31, 2024, due primarily to net additions of 6,400 as well as certain other adjustments.





2

Q1 2024 total connections include 18,100 subscribers that were part of the 2024 divestitures.





3

Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.





4

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period. 

 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)



Three Months Ended

March 31,



2025



2024



2025

vs. 2024

(Dollars and shares in millions, except per share amounts)











Operating revenues











UScellular

$       891



$       950



(6) %

TDS Telecom

257



266



(3) %

All Other1

6



46



(87) %



1,154



1,262



(9) %

Operating expenses











UScellular











Expenses excluding depreciation, amortization and accretion

686



729



(6) %

Depreciation, amortization and accretion

163



165



(2) %

(Gain) loss on asset disposals, net

2



6



(65) %

(Gain) loss on license sales and exchanges, net

(1)



(1)



18 %



850



899



(5) %

TDS Telecom











Expenses excluding depreciation, amortization and accretion

184



173



6 %

Depreciation, amortization and accretion

71



65



10 %

(Gain) loss on asset disposals, net

2



2



(9) %



258



240



7 %

All Other1











Expenses excluding depreciation and amortization

13



53



(76) %

Depreciation and amortization



4



(74) %

(Gain) loss on asset disposals, net



(1)



N/M

(Gain) loss on sale of business and other exit costs, net

(1)





N/M



11



56



(77) %

Total operating expenses

1,119



1,195



(6) %

Operating income (loss)











UScellular

41



51



(19) %

TDS Telecom



27



N/M

All Other1

(6)



(11)



38 %



35



67



(49) %

Other income (expense)











Equity in earnings of unconsolidated entities

37



42



(14) %

Interest and dividend income

6



5



28 %

Interest expense

(61)



(57)



(3) %

Other, net

3



1



N/M

Total other expense

(15)



(9)



(46) %

Income before income taxes

20



58



(65) %

Income tax expense

8



20



(57) %

Net income

12



38



(69) %

Less: Net income attributable to noncontrolling interests, net of tax

5



9



(49) %

Net income attributable to TDS shareholders

7



29



(74) %

TDS Preferred Share dividends

17



17



Net income (loss) attributable to TDS common shareholders

$       (10)



$         12



N/M













Basic weighted average shares outstanding

115



113



1 %

Basic earnings (loss) per share attributable to TDS common shareholders

$    (0.09)



$      0.11



N/M













Diluted weighted average shares outstanding

115



117



(2) %

Diluted earnings (loss) per share attributable to TDS common shareholders

$    (0.09)



$      0.10



N/M





N/M - Percentage change not meaningful.





Numbers may not foot due to rounding.





1

Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)



Three Months Ended

March 31,



2025



2024

(Dollars in millions)







Cash flows from operating activities







Net income

$                 12



$                 38

Add (deduct) adjustments to reconcile net income to net cash flows from operating activities







Depreciation, amortization and accretion

234



234

Bad debts expense

21



31

Stock-based compensation expense

28



14

Deferred income taxes, net

7



14

Equity in earnings of unconsolidated entities

(37)



(42)

Distributions from unconsolidated entities

11



22

(Gain) loss on asset disposals, net

4



7

(Gain) loss on sale of business and other exit costs, net

(1)



(Gain) loss on license sales and exchanges, net

(1)



(1)

Other operating activities

2



1

Changes in assets and liabilities from operations







Accounts receivable

1



27

Equipment installment plans receivable

38



2

Inventory



24

Accounts payable

(17)



(35)

Customer deposits and deferred revenues

(7)



6

Accrued taxes

1



4

Accrued interest

9



9

Other assets and liabilities

(119)



(131)

Net cash provided by operating activities

186



224









Cash flows from investing activities







Cash paid for additions to property, plant and equipment

(129)



(235)

Cash paid for licenses

(2)



(11)

Cash received from divestitures

8



Net cash used in investing activities

(123)



(246)









Cash flows from financing activities







Issuance of long-term debt



140

Repayment of long-term debt

(8)



(57)

Tax payments, net of cash receipts, for TDS stock-based compensation awards

(6)



(1)

Tax payments, net of cash receipts, for UScellular stock-based compensation awards

(7)



Repurchase of UScellular Common Shares

(21)



Dividends paid to TDS shareholders

(22)



(39)

Distributions to noncontrolling interests

(2)



(2)

Cash paid for software license agreements

(10)



(9)

Other financing activities



(2)

Net cash provided by (used in) financing activities

(76)



30









Net increase (decrease) in cash, cash equivalents and restricted cash

(13)



8









Cash, cash equivalents and restricted cash







Beginning of period

384



270

End of period

$               371



$               278

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)



ASSETS











March 31, 2025



December 31, 2024

(Dollars in millions)







Current assets







Cash and cash equivalents

$                                348



$                                364

Accounts receivable, net

1,004



1,041

Inventory, net

182



183

Prepaid expenses

98



72

Income taxes receivable

3



2

Other current assets

38



33

Total current assets

1,673



1,695









Assets held for sale

14











Licenses

4,590



4,588









Other intangible assets, net

154



161









Investments in unconsolidated entities

527



500









Property, plant and equipment, net

4,871



4,994









Operating lease right-of-use assets

978



982









Other assets and deferred charges

729



762









Total assets

$                           13,536



$                           13,682

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)



LIABILITIES AND EQUITY











March 31, 2025



December 31, 2024

(Dollars in millions, except per share amounts)







Current liabilities







Current portion of long-term debt

$                                 35



$                                 31

Accounts payable

247



280

Customer deposits and deferred revenues

276



283

Accrued interest

25



16

Accrued taxes

41



39

Accrued compensation

62



150

Short-term operating lease liabilities

151



153

Other current liabilities

123



138

Total current liabilities

960



1,090









Liabilities held for sale

5











Deferred liabilities and credits







Deferred income tax liability, net

987



981

Long-term operating lease liabilities

867



867

Other deferred liabilities and credits

807



809









Long-term debt, net

4,042



4,051









Noncontrolling interests with redemption features

16



16









Equity







TDS shareholders' equity







Series A Common and Common Shares, par value $0.01 per share

1



1

Capital in excess of par value

2,581



2,574

Preferred Shares, par value $0.01 per share

1,074



1,074

Treasury shares, at cost

(414)



(425)

Accumulated other comprehensive income

18



18

Retained earnings

1,818



1,849

Total TDS shareholders' equity

5,078



5,091









Noncontrolling interests

774



777









Total equity

5,852



5,868









Total liabilities and equity

$                          13,536



$                          13,682

 

Balance Sheet Highlights

(Unaudited)







March 31, 2025







TDS



TDS

Corporate



Intercompany



TDS



UScellular



Telecom



& Other



Eliminations



Consolidated

(Dollars in millions)



















Cash and cash equivalents

$                 182



$                 124



$                  167



$                (125)



$                 348





















Licenses and other intangible assets

$              4,581



$                 157



$                      6



$                    —



$              4,744

Investment in unconsolidated entities

479



4



51



(7)



527



$              5,060



$                 161



$                    57



$                    (7)



$              5,271





















Property, plant and equipment, net

$              2,394



$              2,459



$                    18



$                    —



$              4,871





















Long-term debt, net:



















Current portion

$                   26



$                    —



$                      9



$                    —



$                   35

Non-current portion

2,829



3



1,210





4,042



$              2,855



$                     3



$               1,219



$                    —



$              4,077

 

United States Cellular Corporation

Segment Results

(Unaudited)





Three Months Ended

March 31,

UScellular

2025



2024



2025

vs. 2024

(Dollars in millions)











Operating Revenues











Wireless

$       864



$       925



(7) %

Towers

61



58



5 %

Intra-company eliminations

(34)



(33)



(3) %

Total operating revenues

891



950



(6) %













Operating expenses











Wireless

844



896



(6) %

Towers

40



36



11 %

Intra-company eliminations

(34)



(33)



(3) %

Total operating expenses

850



899



(5) %













Operating income

$         41



$         51



(19) %













Adjusted OIBDA (Non-GAAP)

$       215



$       228



(6) %

Adjusted EBITDA (Non-GAAP)

$       254



$       272



(7) %

Capital expenditures

$         53



$       131



(60) %

 

United States Cellular Corporation

Segment Results

(Unaudited)





Three Months Ended

March 31,

UScellular Wireless

2025



2024



2025

vs. 2024

(Dollars in millions)











Retail service

$       660



$       678



(3) %

Other

54



51



8 %

Service revenues

714



729



(2) %

Equipment sales

150



196



(24) %

Total operating revenues

864



925



(7) %













System operations (excluding Depreciation, amortization and accretion reported below)

191



197



(3) %

Cost of equipment sold

178



216



(18) %

Selling, general and administrative

322



324



Depreciation, amortization and accretion

152



154



(2) %

(Gain) loss on asset disposals, net

2



6



(73) %

(Gain) loss on license sales and exchanges, net

(1)



(1)



18 %

Total operating expenses

844



896



(6) %













Operating income

$         20



$         29



(30) %













Adjusted OIBDA (Non-GAAP)

$       182



$       195



(7) %

Adjusted EBITDA (Non-GAAP)

$       182



$       195



(7) %

Capital expenditures

$         51



$       127



(60) %





Three Months Ended

March 31,

UScellular Towers

2025



2024



2025

vs. 2024

(Dollars in millions)











Third-party revenues

$         27



$         25



6 %

Intra-company revenues

34



33



3 %

Total tower revenues

61



58



5 %













System operations (excluding Depreciation, amortization and accretion reported below)

19



18



4 %

Selling, general and administrative

10



7



33 %

Depreciation, amortization and accretion

11



11



5 %

Total operating expenses

40



36



11 %













Operating income

$         21



$         22



(5) %













Adjusted OIBDA (Non-GAAP)

$         33



$         33



(1) %

Adjusted EBITDA (Non-GAAP)

$         33



$         33



(1) %

Capital expenditures

$           2



$           4



(42) %

 

TDS Telecom Highlights

(Unaudited)















Three Months Ended

March 31,



2025



2024



2025

vs. 2024

(Dollars in millions)











Operating revenues











Residential











Incumbent

$         86



$         90



(5) %

Expansion

34



26



33 %

Cable

64



70



(8) %

Total residential

184



185



(1) %

Commercial

35



37



(6) %

Wholesale

39



44



(12) %

Total service revenues

257



266



(3) %

Equipment revenues





23 %

Total operating revenues

257



266



(3) %













Cost of services

101



98



3 %

Cost of equipment and products





47 %

Selling, general and administrative expenses

83



75



10 %

Depreciation, amortization and accretion

71



65



10 %

(Gain) loss on asset disposals, net

2



2



(9) %

Total operating expenses

258



240



7 %













Operating income

$         —



$         27



N/M



N/M - Percentage change not meaningful



Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow





Three Months Ended

March 31,

TDS CONSOLIDATED

2025



2024

(Dollars in millions)







Cash flows from operating activities (GAAP)

$                 186



$                 224

Cash paid for additions to property, plant and equipment

(129)



(235)

Cash paid for software license agreements

(10)



(9)

Free cash flow (Non-GAAP)1

$                   47



$                  (20)





Three Months Ended

March 31,

UScellular

2025



2024

(Dollars in millions)







Cash flows from operating activities (GAAP)

$                 160



$                 203

Cash paid for additions to property, plant and equipment

(72)



(133)

Cash paid for software license agreements

(9)



(9)

Free cash flow (Non-GAAP)1

$                   79



$                   61





1

Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

Telephone and Data Systems, Inc.

EBITDA, Adjusted EBITDA and Adjusted OIBDA

(Unaudited)

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes. Income and expense items below Operating income are not provided at the individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment level.



Three Months Ended

March 31,

UScellular

2025



2024

(Dollars in millions)







Net income (GAAP)

$                    20



$                   24

Add back or deduct:







Income tax expense

20



28

Income before income taxes (GAAP)

40



52

Add back:







Interest expense

40



43

Depreciation, amortization and accretion expense

163



165

EBITDA (Non-GAAP)

243



260

Add back or deduct:







Expenses related to strategic alternatives review

10



7

(Gain) loss on asset disposals, net

2



6

(Gain) loss on license sales and exchanges, net

(1)



(1)

Adjusted EBITDA (Non-GAAP)

254



272

Deduct:







Equity in earnings of unconsolidated entities

36



42

Interest and dividend income

3



2

Adjusted OIBDA (Non-GAAP)

$                  215



$                 228





Three Months Ended

March 31,

UScellular Wireless

2025



2024

(Dollars in millions)







EBITDA (Non-GAAP)

$                  172



$                 183

Add back or deduct:







Expenses related to strategic alternatives review

9



7

(Gain) loss on asset disposals, net

2



6

(Gain) loss on license sales and exchanges, net

(1)



(1)

Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)

182



195

Deduct:







Depreciation, amortization and accretion

152



154

Expenses related to strategic alternatives review

9



7

(Gain) loss on asset disposals, net

2



6

(Gain) loss on license sales and exchanges, net

(1)



(1)

Operating income (GAAP)

$                    20



$                   29





Three Months Ended

March 31,

UScellular Towers

2025



2024

(Dollars in millions)







EBITDA (Non-GAAP)

$                    32



$                   33

Add back or deduct:







Expenses related to strategic alternatives review

1



Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)

33



33

Deduct:







Depreciation, amortization and accretion

11



11

Expenses related to strategic alternatives review

1



Operating income (GAAP)

$                    21



$                   22





Three Months Ended

March 31,

TDS Telecom

2025



2024

(Dollars in millions)







Net income (GAAP)

$                      4



$                   24

Add back or deduct:







Income tax expense

1



7

Income before income taxes (GAAP)

5



31

Add back:







Interest expense

(1)



(2)

Depreciation, amortization and accretion expense

71



65

EBITDA (Non-GAAP)

75



93

Add back or deduct:







(Gain) loss on asset disposals, net

2



2

Adjusted EBITDA (Non-GAAP)

76



95

Deduct:







Interest and dividend income

1



1

Other, net

2



1

Adjusted OIBDA (Non-GAAP)

$                   73



$                   93



Numbers may not foot due to rounding.

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-first-quarter-2025-results-302444913.html

SOURCE Telephone and Data Systems, Inc.

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