United States Cellular ( (USM) ) has released its Q3 earnings. Here is a breakdown of the information United States Cellular presented to its investors.
United States Cellular Corporation, commonly known as UScellular, is a Chicago-based provider of wireless products and services, offering a high-quality network and customer support with approximately 4.5 million retail connections across 21 states.
In its third quarter 2024 earnings report, UScellular announced total operating revenues of $922 million, a decrease from the $963 million reported in the same quarter of the previous year. The company also highlighted a net loss of $79 million attributable to its shareholders, a significant decline from the net income of $23 million reported in the third quarter of 2023.
Key financial metrics reveal that service revenues decreased slightly by 2% year-over-year, and equipment sales saw a more substantial decline of 13%. Despite these decreases, UScellular announced improved wireless operating results, including a 2% growth in postpaid ARPU and a 32% increase in fixed wireless customers. Additionally, the company has entered agreements to sell select spectrum assets for $1 billion, demonstrating strategic moves to monetize spectrum assets.
The company is focusing on network investments to enhance its 5G coverage, primarily through deploying mid-band spectrum to improve speed and capacity. UScellular also remains committed to exploring strategic alternatives, including a planned sale of wireless operations and select spectrum assets to T-Mobile, expected to close in mid-2025.
Looking ahead, UScellular remains cautiously optimistic, as reflected in its updated 2024 financial guidance, which anticipates an increase in Adjusted EBITDA. The company continues to pursue strategic opportunities to enhance shareholder value while maintaining a focus on operational efficiency and customer satisfaction.
