UScellular Q4 Earnings: 3.99 Million Postpaid Connections, Churn Drops To 1.29%, Withholds 2025 Guidance Due To T-Mobile Deal

United States Cellular Corp USM reported fourth-quarter operating revenue of $970.00 million, down by 3% year-on-year, topping the analyst consensus estimate of $965.87 million. The adjusted EPS of $0.05 beat the analyst consensus loss estimate of $(0.05).

Service revenue declined 2% to $742 million, and equipment sales revenue decreased 7% to $228 million.

Also Read: T-Mobile’s USCellular Acquisition Is Key to 5G Leadership and Market Expansion, Analyst Says

The company’s postpaid connections at the end of the quarter stood at 3.99 million, down from 4.11 million a year ago. The ARPU was $51.73 versus $51.61 a year ago. The churn rate stood at 1.29%, down from 1.44%.

The company’s free cash flow was negative $53 million during the quarter, compared to negative $44 million a year ago.

On May 24, 2024, Telephone and Data Systems, Inc and UScellular agreed to sell UScellular’s wireless operations and select spectrum assets to T-Mobile US, Inc for $4.4 billion. TDS holds an 83% stake in UScellular. Pending regulatory approval, the transaction will likely close in mid-2025.

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

In 2024, United States Cellular agreed with AT&T Inc to sell a portion of its retained spectrum licenses for $1.018 billion.

Last year, United States Cellular also agreed to sell part of its retained spectrum licenses to Verizon Communications Inc for $1.0 billion.

Price Action: USM stock is down 4.13% at $64.28 at last check Friday.

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