Telephone And Data Systems Posts 5.6% Decline In Q4 Revenue, Stock Dips

Shares of Telephone and Data Systems, Inc. TDS are trading lower on Friday after the fourth-quarter FY24 earnings.

The company reported a fourth-quarter revenue decline of 5.6% year-on-year to $1.240 billion, missing the analyst consensus estimate of $1.254 billion.

Adjusted EPS loss of 9 cents beat the consensus estimate for a loss of 28 cents.

UScellular revenue decreased 3% to $970 million and Postpaid ARPU grew 0.2% to $51.73. Meanwhile, TDS Telecom segment revenues rose by 1% to $264 million. Residential broadband connections grew 2.4% .

Total operating expenses for the quarter declined 35% to $1.2 billion. Operating income was $37 million with a margin of 3% compared to an operating loss of $524 million.

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The company held $364 million in cash and equivalents as of December 31, 2024. Operating cash flow for the year totaled $1.14 billion.

The board of directors has approved a quarterly dividend of $0.04 per common share and series A common share payable on March 31, 2025, to holders of record on March 17, 2025.

“During 2024, we made significant progress on the strategic review of alternatives at UScellular,” said TDS President and CEO Walter C. D. Carlson.

“In 2025, TDS Telecom will continue its ongoing fiber expansion and the FCC’s Enhanced Alternative Connect America Cost Model program and intends to bring a fiber-rich network to over 150,000 new marketable service addresses throughout the country.”

Outlook: TDS Telecom expects FY25 total operating revenues of $1.030 billion – $1.070 billion, while UScellular didn’t provide financial guidance due to the pending transaction with T-Mobile.

Price Action: TDS shares are trading lower by 2.72% at $38.56 at the last check Friday.

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