United States Cellular ( (USM) ) has released its Q4 earnings. Here is a breakdown of the information United States Cellular presented to its investors.
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United States Cellular Corporation, commonly known as UScellular, is a Chicago-based telecommunications company offering wireless products, services, and a high-quality network across 21 states, connecting 4.4 million retail users. It is primarily owned by Telephone and Data Systems, Inc. (TDS).
For the fourth quarter of 2024, UScellular reported operating revenues of $970 million, slightly down from $1,000 million in the previous year, and a net income of $5 million, compared to $14 million in the same quarter of the prior year. The company also recorded yearly operating revenues of $3,770 million, a decrease from $3,906 million in 2023.
The company highlighted several strategic moves, including transactions with T-Mobile and other network operators as part of a strategic alternatives review. Despite a net income loss of $39 million for the year, when adjusted for a third-quarter license impairment, the net income stood at $63 million. Improvements were seen in wireless operations with reduced postpaid and prepaid net losses and churn rates, alongside a 27% growth in fixed wireless customers. Cash flow from operations and free cash flow showed an upward trend.
Looking ahead, UScellular remains focused on enhancing shareholder value and investing in their network and customer experience, despite the negative subscriber results. The company is also progressing with transactions related to the sale of its wireless operations and spectrum assets, anticipated to close in mid-2025.
UScellular’s management remains committed to financial discipline and is optimistic about building on the momentum seen in customer additions in the latter half of 2024, continuing to prioritize investments in their network and strategic transactions.
