Telephone And Data Systems Working To Improve Subscriber Results In Challenging Market: Here's Details

Telephone And Data Systems, Inc. TDS reported Q3 FY23 revenues of $1.278 billion, against the consensus of $1.277 billion. Revenues slumped 8% Y/Y. 

The company reported a loss of $(0.16), missing the consensus of ($0.11) loss.

On August 4, 2023, TDS and UScellular announced that the Boards of Directors of both companies decided to initiate a process to explore a range of strategic alternatives for United States Cellular Corporation USM. The process is still ongoing.

At the end of the third quarter of 2023, Telephone And Data Systems owned approximately 83% of UScellular. 

UScellular revenues declined 11% to $963 million. Meanwhile, TDS Telecom segment revenues remained flat Y/Y at $256 million. TDS Telecom segment delivered 61,000 fiber services addresses in Q3 and 127,000 year-to-date.

TDS exited the quarter with cash and equivalents worth $293 million. Long-term debt as of quarter-end was $3.840 billion. 

The company is increasing the full-year 2023 fiber address goal of TDS Telecom to 200,000.

"At UScellular, while working to improve subscriber results amidst a challenging market, the organization's financial discipline has enabled the team to deliver a notable increase in profitability," said LeRoy T. Carlson, Jr., TDS President and CEO. 

"And its growth initiatives – the tower portfolio and fixed wireless services – are both contributing nicely to the gains," Carlson added.

FY23 Outlook: TDS sees FY23 UScellular service revenues of $3.025 billion-$3.075 billion, unchanged from the prior view.

Operating revenues forecast for TDS Telecom is unchanged in the range of $1.03 billion-$1.06 billion.

Price Action: TDS shares are trading higher by 2.26% to $19.47 on Friday.