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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.
Telephone and Data Systems, Inc. (TDS) and United States Cellular Corporation (UScellular) will hold a conference call to discuss their second quarter operating results on August 6, 2021, at 9:00 a.m. CT. Financial results will be released on August 5, 2021, after market close. Investors can access the live and on-demand webcast via the companies' investor relations websites. TDS serves approximately 6 million connections nationwide in wireless, broadband, and managed services, employing about 9,100 associates.
United States Cellular Corporation (NYSE: USM) announced the redemption of all its outstanding 7.25 percent Senior Notes due 2064 (NYSE: UZC) for a total of $300 million. The redemption will occur on June 16, 2021, at 100 percent of the principal amount, plus accrued interest. CFO Peter L. Sereda emphasized that this move is part of a strategy to lower their balance sheet costs and optimize financial leverage for ongoing investments, including 5G initiatives. A notice of redemption was distributed on May 17, 2021.
Telephone and Data Systems and United States Cellular Corporation announced their upcoming Annual Meetings of Shareholders. UScellular's meeting is scheduled for May 18, 2021, at 8:30 a.m. Central time, while TDS' meeting will occur on May 20, 2021, at 9:00 a.m. Central time. Both meetings will be webcast live and available on-demand. Interested participants should register at least 15 minutes before the meetings. TDS serves around 6 million connections through its various businesses.
UScellular announced the pricing of a public offering for $500 million of 5.500% Senior Notes due 2070, callable at par on June 1, 2026. The closing of the offering is anticipated on May 17, 2021. Proceeds will be used to redeem a portion of outstanding 7.25% Senior Notes due 2064 and for general corporate purposes, including debt repayment and funding 5G projects. The notes will be listed on the NYSE under symbol UZF. BofA Securities and other firms are managing the offering.
UScellular reported a strong first quarter of 2021, with total operating revenues increasing to $1,023 million compared to $963 million in Q1 2020. Service revenues also rose to $771 million, up from $762 million. However, net income dropped to $60 million or $0.69 per share, down from $71 million or $0.81 per share year-over-year. The company is focused on enhancing the customer experience and expanding 5G services while maintaining operational discipline.
UScellular has announced a $1 million investment for the sixth consecutive year in the Boys & Girls Clubs of America, targeting educational opportunities in STEM for local youth. This initiative impacts 20 clubs within UScellular’s service areas, aiming to inspire career aspirations among children. In 2020, previous donations reached over 300,000 kids, emphasizing the company's commitment to community support. Since 2009, UScellular has contributed over $20.7 million to various nonprofit organizations across the U.S.
Telephone and Data Systems (TDS) and United States Cellular Corporation (UScellular) will host a conference call to discuss their first quarter operating results on May 7, 2021, at 9:00 a.m. CT. Financial results will be released on May 6, 2021, after market close. Interested parties can access the webcast via the companies' investor relations websites. TDS, a Fortune 1000 company, serves approximately 6 million connections nationwide through its subsidiaries. Founded in 1969, TDS is headquartered in Chicago and employed 9,200 people as of December 31, 2020.
United States Cellular Corporation (NYSE: USM) will redeem all outstanding 7.25% Senior Notes due 2063 (NYSE: UZB) on May 12, 2021, totaling $275 million. Redemption will occur at 100% of the principal plus accrued interest. The company's CFO, Peter L. Sereda, emphasized that lowering balance sheet costs is a priority, enabling investments in opportunities like 5G. A notice of redemption is being sent to registered holders, with inquiries directed to respective brokerages.
United States Cellular Corporation (NYSE:USM) announced the nomination of Deirdre C. Drake to its Board of Directors, replacing Kurt B. Thaus, effective at the annual shareholders' meeting on May 18, 2021. Drake, currently the executive vice president and chief people officer, has significantly impacted associate engagement and talent development since joining the company in 2014. Board Chairman LeRoy T. Carlson, Jr. emphasized the importance of her appointment for enhancing governance and addressing key strategic areas like Diversity and Inclusion.
United States Cellular Corporation (NYSE: USM) has successfully acquired 254 spectrum licenses in the FCC's C-Band Auction 107 for approximately $1.46 billion, covering 94% of its subscribers. This acquisition, combined with previous mid-band purchases, enhances UScellular's 5G deployment strategy. CEO Laurent Therivel emphasized the importance of diverse spectrum bands and expressed hope for further spectrum availability to bridge the digital divide. The ongoing modernization aims to improve customer experiences while expanding 5G and IoT opportunities.
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