U.S. Cellular: Shrinking Slowly
Fri, Feb. 19, 10:54 AM
- Telephone & Data Systems (NYSE:TDS) has tumbled 11.2% after disappointing Q4 results were paced by a revenue decline at U.S. Cellular (USM -8.7%).
- A 2.3% drop in sales at U.S. Cellular, of which TDS owns 84%, was mirrored at the parent, where revenues dropped to $1.27B.
- Aside from customer gains at U.S. Cellular, TDS Telecom saw residential wireline connections falling again, to 582,700, with Y/Y declines in both Voice (-16,100) and Broadband (-700 connections). IPTV connections showed solid growth, to 34,400 connections from a year-ago 23,400.
- Commercial wireline connections fell to 341,000 from 358,100. Cable connections, however, increased 13,000 to 280,300 total.
- Conference call link
- Press Release
Fri, Feb. 19, 10:25 AM
- U.S. Cellular (NYSE:USM) has slid 6.5% following a Q4 earnings report where revenues fell well short of expectations and average revenue per user fell off.
- Overall revenues fell 2.3%. EBITDA again came in well ahead of expectations, at $137M vs. $76.5M expected.
- It showed net postpaid additions of 68,000, to come to a total of 4.41M subscribers; net prepaid adds of 7,000, to come to 387K total. Billed ARPU was $49.40, well down from a year-ago $53.63.
- The company's guiding to 2016 revenues of $3.9B-$4.1B -- flat at the midpoint from 2015 -- and EBITDA of $725M-$850M. It's expecting capex of about $500M vs. $533M in 2015.
- Conference call to come at 10:30 a.m. ET.
- Press Release
Fri, Feb. 19, 8:15 AM
Thu, Feb. 18, 5:30 PM
Nov. 17, 2015, 10:43 AM
- U.S. Cellular (USM +1.3%) has sold $300M in debt with an eye toward airwaves spending.
- The company has sold $300M in 7.25% senior notes due 2064. The notes are callable at par beginning Dec. 1, 2020.
- It expects to use proceeds for general purposes, including potential purchases of wireless spectrum.
- The FCC plans to auction low-band airwaves by the end of March in a broadcast incentive sale.
Oct. 30, 2015, 11:00 AM
- Telephone & Data Systems (NYSE:TDS) is up 4.2% as the solid results at U.S. Cellular pushed it to its own Q3 beat and a 7% gain in revenues.
- As in Q2, a swing to profit at U.S. Cellular (NYSE:USM), of which TDS owns 84%, set TDS up for similar success. EPS was $0.46 vs. a year-ago -$1.07.
- Aside from customer gains at U.S. Cellular, TDS Telecom saw residential wireline connections fall to 587,800 as a Y/Y drop in voice connections (-14,400) overcame a gain in IPTV (+9,600). Residential revenue per connection was $42.83, up from $41.47. Commercial wireline connections fell to 345,600 from 362,300.
- Cable connections rose to 276,900 from a year-ago 257,300 as net adds in broadband and voice mitigated a slight loss in video.
- Full-year Guidance was unchanged for its TDS Telecom business, but changes at the cellular business ended up with resulting changes for TDS overall in full-year revenue (down to $5.145B-$5.195B), operating cash flow (up to $825M-$935M), adjusted EBITDA (up to $1B-$1.11B) and capex (down to $825M).
Oct. 30, 2015, 10:29 AM
- U.S. Cellular (NYSE:USM) is up 4.6% after its Q3 report showed a swing to profit and the carrier completed its 4G LTE rollout.
- Revenues increased by $68.5M Y/Y -- much of which came from the cancellation of a loyalty program where the company recognized $58.2M in previously deferred revenues via expired reward points.
- EBITDA of $208.1M substantially beat a consensus expectation for $131.6M.
- It showed net postpaid additions of 17,000 to come to a total of 4.34M subscribers; net prepaid adds of 12,000 to come to 380,000 total. Billed ARPU was $55.42, up from $53.24 a year ago. Smartphones now make up 87% of total handsets sold.
- The company cut its guidance for full-year revenues to $4B from a previous $4B-$4.1B (vs. an expected $3.98B) while raising its EBITDA guidance to $710M-$790M (over an expected $563.3M). Capex of $600M is unchanged and it now sees operating cash flow of $540M-$620M, up from a previous $440M-$540M.
- Conference call to come at 10:30 a.m. ET.
Oct. 30, 2015, 7:56 AM
- United States Cellular (NYSE:USM): Q3 EPS of $0.75 may not be comparable to consensus of -$0.02.
- Revenue of $1.07B (+7.0% Y/Y) beats by $50M.
Oct. 29, 2015, 5:30 PM| Oct. 29, 2015, 5:30 PM | 19 Comments
Jul. 31, 2015, 10:17 AM
- Telephone & Data Systems (NYSE:TDS) is up 4.2% after strong profits at U.S. Cellular drove its own EPS beat, and revenues grew more than 3% from the prior year.
- A swing to profit at U.S. Cellular (NYSE:USM), of which TDS owns 84%, paced a swing at TDS to $23M profit from a year-ago loss of $22.1M.
- Along with postpaid customer growth at USM, TDS Telecom grew IPTV customers, to 27.9K from Q1's 25.6K and a year-ago 18.2K. Residential voice connections declined Y/Y to 329K from 346.1K, and residential broadband connections declined Y/Y as well, to 231.2K from 232.7K.
- Overall, residential wireline connections were down about 1.5%, to 588,100. Residential revenue per connection was $42.10, up from last year's $41.05. Commercial wireline connections were down about 4%, to 350.6K.
- With U.S. Cellular raising guidance for the second straight quarter, TDS has boosted its own targets. It sees a narrower range of full-year revenues of $5.145B-$5.295B, and EBITDA of $890M-$1.02B, up from $870M-$1B. Guidance for the TDS Telecom business is unchanged (full-year revenues of $1.13B-$1.18B, and EBITDA of $280M-$310M).
Jul. 31, 2015, 9:59 AM
- U.S. Cellular (NYSE:USM) has charged higher, up 6.3% after EPS beat expectations and the company boosted its outlook for earnings and cash flow for the full year.
- Revenues missed slightly at $975.7M despite 2% growth. EBITDA of $163.4M beat an expected $156M, and net income swung overall to $19.4M from a year-ago loss of $18.8M.
- Revenue breakout: Service, $824.4M (down 2%); Equipment Sales, $151.3M (up 32%).
- The company added 17K net postpaid subscribers, and net 8K prepaid. Smartphones sold as a percent of total handsets rose to 86.7%.
- "We are focused on continuing to grow our customer base and increasing revenue and operating cash flow in 2015 by offering innovative services and exciting devices that run on our high-quality network," said CEO Kenneth Meyers. "Our 4G LTE network will cover 98 percent of customers by the end of the year."
- For the full year, the company narrowed revenue expectations (to $4B-$4.1B, in line) but raised expected operating cash flow to $440M-$540M, from $400M-$500M, and boosted guidance for EBITDA to $600M-$700M (higher than a consensus $600M) from its previous $580M-$680M.
Jul. 31, 2015, 7:53 AM
- United States Cellular (NYSE:USM): Q2 EPS of $0.23 beats by $0.18.
- Revenue of $975.67M (+1.9% Y/Y) misses by $24.33M.
Jul. 30, 2015, 5:30 PM
May 1, 2015, 1:10 PM
- Telephone & Data Systems (NYSE:TDS) is up 8.2%, making a new 52-week high, after posting Q1 results that beat EPS expectations, though revenue fell short of consensus.
- EPS of $1.33 (from net income of $145.7M), when adjusted, came to break-even vs. expectations of a loss of $0.01. Results were driven by those at U.S. Cellular (NYSE:USM), of which TDS owns 84%.
- Aside from U.S. Cellular's 9K net postpaid customer adds, at the TDS Telecom wireline business, residential connections slipped to 588.4K from a year-ago 593.6K, but residential revenue per connection was up to $42.32 from the prior year's $40.79.
- Commercial wireline connections were 355K, down from 369.8K last year.
- Cable connections grew to 271K from last year's 149.4K.
- Along with U.S. Cellular's raised guidance, TDS raised guidance for 2015 EBITDA to $870M-$1B, from $820M-$950M (vs. an expected $816M), and for operating cash flow to $685M-$815M from $635M-$765M.
May 1, 2015, 12:46 PM
- U.S. Cellular (NYSE:USM) is up 4.1% today in the wake of a Q1 report where it grew revenues more than 4% and beat EPS expectations.
- Net income of $160.1M was up from a prior-year $19.4M, boosted by gains on divesting businesses ($111.5M) and on license sales ($122.9M). EPS of $1.89, when adjusted, came to $0.24 vs. an expected $0.02.
- Net postpaid customer adds were 9K; churn rate was 1.5%, down from Q4's 1.6% and the prior year's 2.3%. ARPU was down to $54.87 from Q4's $56.51, and ARPA was down to $134.94 from Q4's $136.13, but up from a year-ago $132.03.
- It says its 4G LTE network will cover 98% of customers by year's end.
- The company raised full-year guidance on adjusted EBITDA to $580M-$680M from a previous $530M-$630M, vs. consensus expectations of $552M, and guided to higher operating cash flow of $400M-$500M from a previous $350M-$450M.
May 1, 2015, 7:49 AM
- United States Cellular (NYSE:USM): Q1 EPS of $1.89 may not be comparable to consensus of -$0.04.
- Revenue of $965.24M (+4.3% Y/Y) misses by $44.76M.
United States Cellular Corp. provides wireless telecommunication services. It provides voice call, messaging and data pricing, plan minutes, incoming calls, texts, picture messages, minutes, mobile-to-mobile service, voice turn-by-turn directions, bluetooth headsets, free incoming calls, e-mail,... More
Industry: Wireless Communications
Country: United States
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