Telephone and Data Systems Inc (TDS) Reports Q3 2023 Earnings: Revenue Drops, Net Loss Narrows
Telephone and Data Systems Inc (NYSE:TDS) reported total operating revenues of $1,278 million for Q3 2023, a decrease from $1,392 million in Q3 2022.
Net loss attributable to TDS common shareholders was $(17) million, an improvement from $(25) million in the same period last year.
Postpaid Average Revenue Per User (ARPU) grew 2% and Fixed Wireless customers increased by 57% to 106,000.
TDS Telecom raised its full-year 2023 fiber address goal to 200,000 due to better-than-expected fiber service address delivery results.
On November 3, 2023, Telephone and Data Systems Inc (NYSE:TDS) released its earnings report for the third quarter of 2023. The company reported total operating revenues of $1,278 million, a decrease from $1,392 million for the same period one year ago. The net loss attributable to TDS common shareholders was $(17) million, an improvement from $(25) million in the same period last year.
Financial Highlights
Despite the decrease in total operating revenues, TDS reported several positive financial highlights. The company's Postpaid ARPU grew by 2%. Additionally, the number of Fixed Wireless customers increased significantly by 57% to 106,000. TDS also reported an 8% growth in tower rental revenues.
Furthermore, TDS Telecom is increasing its full-year 2023 fiber address goal to 200,000, up from the previous goal due to better-than-expected fiber service address delivery results. The company delivered 61,000 fiber services addresses in Q3, making a total of 127,000 year-to-date.
Commentary
The TDS Family of Companies continues to invest in its networks to improve its competitive positions, said LeRoy T. Carlson, Jr., TDS President and CEO. UScellular is rolling out 5G mid-band spectrum, and TDS Telecom is deploying fiber in attractive markets.
2023 Estimated Results
TDS provided estimates for full-year 2023 results for UScellular and TDS Telecom. For UScellular, service revenues are expected to remain unchanged at $3,025-$3,075 million. Adjusted OIBDA is estimated to be between $770-$830 million, and Adjusted EBITDA between $945-$1,005 million. For TDS Telecom, total operating revenues are projected to remain unchanged at $1,030-$1,060 million, with Adjusted OIBDA and Adjusted EBITDA also unchanged at $270-$300 million.
Recent Developments
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 UScellular. The process is still ongoing.
Explore the complete 8-K earnings release (here) from Telephone and Data Systems Inc for further details.
This article first appeared on GuruFocus.
