Q1 2024 Telephone and Data Systems Inc Earnings Call Transcript
Key Points
- Telephone and Data Systems Inc reported notable year-over-year improvements in adjusted EBITDA, achieving profitability targets.
- TDS Telecom is experiencing strong growth from its multiyear fiber investments, contributing to both top and bottom-line growth.
- UScellular demonstrated solid ARPU growth and effective expense discipline, enhancing bottom-line results.
- The company successfully entered into a $375 million unsecured debt facility to support general corporate purposes and advance TDS Telecom's fiber build program.
- Telephone and Data Systems Inc is maintaining a focus on cost management, which includes a combination of long-dated debt maturities and reasonable leverage, providing financial flexibility.
- Postpaid handset gross adds continue to be a challenge, with a significant year-over-year decline in the total pool of available subscribers.
- The competitive environment remains intense, particularly with cable wireless competitors who are making aggressive moves on pricing and promotions.
- The Affordable Connectivity Program, which helped bridge the digital divide, was not renewed, posing challenges for customer affordability.
- UScellular's total operating revenues for the quarter decreased by 4%, driven by declines in service revenues and equipment sales.
- The wireless industry's moderation in capital expenditures is impacting growth rates in the Tower business, potentially affecting long-term revenue opportunities.
Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the TDS and UScellular First Quarter 2024 Operating Results Conference Call. (Operator Instructions)
I would now like to turn the conference over to Colleen Thompson, Vice President, Corporate Relations. Please go ahead.
Good morning and thank you for joining us. We want to make you all aware of the presentation that we have prepared to accompany our comments this morning, which you can find on the Investor Relations sections of the TDS and UScellular websites.
With me today and offering prepared comments are from TDS, Vicki Villacrez, Executive Vice President and Chief Financial Officer; from UScellular, LT Therivel, President and Chief Executive Officer; Doug Chambers, Executive Vice President, Chief Financial Officer and Treasurer; and from TDS Telecom, Michelle Brukwicki, Senior Vice President of
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