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United States Cellular Corporation (NYSE: USM), headquartered in Chicago, is a prominent regional wireless carrier with approximately 4.5 million retail connections across 21 states. Serving regions such as the Midwest, mid-Atlantic, New England, and the Pacific Northwest, UScellular's operations cover a population of about 32 million people. The company primarily serves rural areas and second/third-tier cities, with notable exceptions being the greater Milwaukee and Oklahoma City regions.
UScellular provides a comprehensive range of wireless products and services, bolstered by excellent customer support and a high-quality network. Unlike many of its peers, UScellular owns the majority of its towers, which gives it a unique competitive edge. The company also holds a 5.5% stake in Verizon Wireless' Los Angeles operations. In recent developments, UScellular has agreed to sell its wireless operations and 30% of its spectrum assets to T-Mobile for $4.4 billion, with the transaction expected to close in mid-2025.
Financially, UScellular reported total operating revenues of $950 million for the first quarter of 2024, and a net income attributable to shareholders of $18 million. The company has maintained financial discipline, focusing on postpaid ARPU growth and expense management, despite challenging market conditions. UScellular's recent strategic decision to explore a range of alternatives, including the sale to T-Mobile, aims to enhance shareholder value and position the company for long-term growth.
In addition to its core wireless services, UScellular's tower assets represent one of the largest tower businesses in the United States. Post-transaction, T-Mobile will become a long-term tenant on over 2,600 of these towers, ensuring continued service and creating a stable revenue stream for UScellular. The company also retains significant spectrum assets and equity method investments, which generated $158 million in income and $150 million in distributions in 2023.
UScellular remains committed to its mission of connecting people to what matters most, striving to improve network quality, expand 5G services, and maintain strong customer relationships. For more information, visit UScellular.
UScellular reported total operating revenues of $1,027 million for Q2 2022, a slight increase from $1,014 million in Q2 2021. Service revenues rose to $783 million, up from $774 million year-over-year. However, net income fell to $21 million or $0.25 per share compared to $35 million or $0.39 in the same quarter last year. The company reaffirmed its 2022 guidance, estimating full-year service revenues between $3,100 million and $3,200 million and adjusted EBITDA between $925 million and $1,075 million.
Telephone and Data Systems (TDS) and United States Cellular Corporation (USM) will host a conference call to discuss their second quarter operating results on August 5, 2022, at 9:00 a.m. CT. Financial results will be released on August 4, 2022, after market close. Investors can access the live and on-demand webcast via their investor relations websites, with registration recommended at least 15 minutes prior. TDS, a Fortune 1000 company, serves about 6 million connections through UScellular, TDS Telecom, and OneNeck IT Solutions, employing approximately 8,800 associates as of March 31, 2022.
UScellular has activated the 988 short code for the National Suicide Prevention Lifeline, allowing customers to call and text for free mental health support. This service aims to assist those in suicidal crisis or emotional distress by connecting them with trained counselors. The launch aligns with Congress's goal to make the service widely available by July 16, 2022. In 2020, suicide rates were alarming, with a death occurring every 11 minutes, emphasizing the importance of accessible mental health support. UScellular's initiative reflects its commitment to enhancing customer well-being.
UScellular and Ericsson have commenced pioneering 5G testing with drones, marking a significant advancement in drone technology. Conducted in Beloit, Wisconsin, the trials utilized 5G smartphones and RF measurement equipment to capture key performance metrics during drone flights between UScellular's towers. The data aims to enhance connectivity for aerial drones, enabling applications such as remote inspections for various industries. With the drone market projected to reach $30 billion in ten years, this partnership positions UScellular as a leader in delivering 5G capabilities crucial for innovative drone operations.
UScellular (NYSE: USM) has appointed Adriana Rios Welton as the new head of legal and government affairs. Welton, who has over 11 years of legal experience, previously served as general counsel at AT&T Mexico. She succeeds John Gockley, who will retire in July after a 15-year tenure. CEO Laurent Therivel expressed optimism regarding Welton's role in advancing the company's legal and regulatory agenda to enhance connectivity and meet long-term goals. Welton holds degrees from Princeton University and Duke University.
UScellular (NYSE: USM) has appointed Sheila Crisostomo as the new vice president of retail sales and operations, effective June 1, 2022. Crisostomo brings over 26 years of experience in telecommunications, previously serving as vice president and general manager at AT&T. In her new role, she will focus on enhancing growth and performance across retail and prepaid sales channels. UScellular's president and CEO, Laurent 'LT' Therivel, expressed confidence in her ability to improve customer experience.
Telephone and Data Systems, Inc. (TDS) and United States Cellular Corporation (USM) will hold their Annual Meetings of Shareholders on the following dates:
- UScellular: May 17, 2022, at 8:30 a.m. Central time
- TDS: May 19, 2022, at 9:00 a.m. Central time
Both meetings will be available via live and on-demand webcasts. Attendees should register at least 15 minutes prior to the meetings. TDS provides various services through its businesses, including UScellular, and had approximately 6 million connections as of March 31, 2022, employing around 8,800 associates.
UScellular reported Q1 2022 revenues of $1,010 million, slightly down from $1,023 million year-over-year. Service revenues increased to $787 million from $771 million. Net income dropped to $49 million ($0.57 per share) compared to $60 million ($0.69 per share) in Q1 2021. The company maintains its 2022 revenue guidance of $3,100-$3,200 million, with Adjusted EBITDA projected at $925-$1,075 million. UScellular also bought back 363,821 shares for $10 million in Q1.
Telephone and Data Systems (TDS) and United States Cellular Corporation (USM) will release their first quarter operating results on May 5, 2022, after market close. A conference call to discuss these results is scheduled for May 6, 2022, at 9:00 a.m. central time. Investors can access the live and on-demand webcast through the TDS investor relations site or the UScellular investor relations site. The companies serve approximately 6 million connections across the U.S.
United States Cellular Corporation (NYSE:USM) announced the nomination of Esteban C. Iriarte and Vicki L. Villacrez to its Board of Directors for election on May 17, 2022. Iriarte, currently COO at Millicom, brings extensive experience in wireless operations, while Villacrez, set to become CFO at TDS, has over thirty years in the telecommunications sector. This board refresh aims to enhance governance and strategic oversight, succeeding Ronald E. Daly and Peter L. Sereda, both of whom served significant terms.
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