United States Cellular Corp (USM) Reports Q3 2023 Earnings: Net Income Rises to $23 Million
United States Cellular Corp (NYSE:USM) reported total operating revenues of $963 million for Q3 2023, compared to $1,083 million for the same period in 2022.
Net income attributable to UScellular shareholders was $23 million, a significant improvement from a net loss of $12 million in Q3 2022.
Postpaid ARPU grew by 2%, and the number of fixed wireless customers increased by 57% to 106,000.
Tower rental revenues also saw an 8% growth.
On November 3, 2023, United States Cellular Corp (NYSE:USM) released its third-quarter earnings for 2023. The company reported total operating revenues of $963 million, down from $1,083 million in the same period last year. Service revenues totaled $762 million, compared to $781 million for the same period one year ago. However, net income attributable to UScellular shareholders and related diluted earnings per share were $23 million and $0.26, respectively, a significant improvement from a net loss of $12 million and a loss of $0.15 per share in Q3 2022.
Financial Highlights
UScellular's Q3 2023 highlights included a 2% growth in postpaid ARPU and a 57% increase in fixed wireless customers to 106,000. Tower rental revenues also grew by 8%. The company reported increased profitability with net income, Adjusted OIBDA, and Adjusted EBITDA all up significantly. Cash flows from operating activities also grew, and the company reported positive free cash flow.
While we remain committed to improving subscriber results amidst a challenging market, the organization has done an outstanding job of also focusing on financial discipline in order to deliver improved net income and adjusted EBITDA versus prior year, said Laurent Therivel, President and CEO of UScellular. And we have continued momentum in several key growth areas within our business, including our tower portfolio and fixed wireless services, which have both contributed to the notable profitability gains in the quarter.
2023 Estimated Results
UScellular's current estimates for full-year 2023 results remain unchanged for service revenues at $3,025-$3,075 million. Adjusted OIBDA is expected to be between $770-$830 million, and Adjusted EBITDA is estimated to be between $945-$1,005 million. Capital expenditures are expected to remain unchanged at $600-$700 million.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, UScellular reported total assets of $10,749 million. The company's net cash provided by operating activities for the first nine months of 2023 was $719 million. Cash paid for additions to property, plant, and equipment totaled $454 million.
For more detailed financial information, please visit the UScellular website.
Explore the complete 8-K earnings release (here) from United States Cellular Corp for further details.
This article first appeared on GuruFocus.
