On February 21, 2025, Telephone and Data Systems, Inc. (NYSE:TDS) shared its financial results for the fourth quarter and full year of 2024. The report highlighted a decline in total operating revenues but marked a significant improvement in net income, showcasing the company's ongoing efforts in strategic reviews and operational enhancements across its subsidiaries, UScellular and TDS Telecom.

2. Quarterly Financial Performance

For the fourth quarter of 2024, TDS reported total operating revenues of $1,240 million, a decrease from $1,313 million in the fourth quarter of 2023. This decline can be attributed to various operational adjustments and market conditions affecting revenue streams.

Net Income and Earnings Per Share

The company's net loss attributable to common shareholders was $(11) million, translating to a diluted earnings per share (EPS) of $(0.10). In comparison, the same quarter in the previous year saw a more substantial loss of $(523) million, with an EPS of $(4.64). This represents a remarkable turnaround, indicating improved operational efficiency and cost management.

3. Full Year Financial Results

For the full year 2024, TDS reported total operating revenues of $4,964 million, down from $5,160 million in 2023. The net loss attributable to common shareholders for 2024 was $(97) million, or $(0.85) per share, a notable improvement from the $(569) million loss and $(5.06) per share in 2023.

Non-GAAP Adjustments

Excluding impairment losses, TDS reported a net loss of $(12) million for 2024, demonstrating a more stabilized financial position. The adjustments reflect the company's ongoing strategic focus on core operations.

4. Segment Highlights

UScellular

UScellular, the wireless segment of TDS, announced several strategic transactions, including a significant agreement to sell its wireless operations and select spectrum assets to T-Mobile, expected to close mid-2025 pending regulatory approvals. Notable achievements within UScellular include:

Improved wireless operating results with reduced postpaid and prepaid net losses.

A 27% growth in fixed wireless customers.

Increased cash flows from operating activities and free cash flow year-over-year.

TDS Telecom

TDS Telecom exceeded its fiber address goals for the year, delivering 129,000 marketable fiber service addresses and expanding its footprint by 6%, bringing the total to 1.8 million service addresses. Key performance indicators included:

A 2% growth in residential broadband connections.

A 5% increase in residential revenue per connection.

Total wireline expansion residential revenues grew to $114 million, up from $75 million.

Walter C. D. Carlson, TDS President and CEO, stated, “During 2024, we made significant progress on the strategic review of alternatives at UScellular. Both business units invested in their high-quality networks, enhancing service capabilities for our customers.”

5. Looking Ahead: 2025 Estimates

TDS provided a cautious outlook for 2025, with estimated results for TDS Telecom projected as follows:

Total operating revenues: $1,030-$1,070 million

Adjusted OIBDA (Non-GAAP): $310-$350 million

Adjusted EBITDA (Non-GAAP): $320-$360 million

Capital expenditures: $375-$425 million

The estimates reflect management’s view as of February 21, 2025, and are subject to change based on evolving market conditions and operational strategies.

6. Conclusion

The financial results presented by TDS for the fourth quarter and full year of 2024 illustrate a significant recovery and strategic focus on core operations amid a challenging market environment. The company’s commitment to enhancing service capabilities and exploring strategic alternatives positions it for potential growth in 2025 and beyond. As TDS continues to refine its operational strategies, stakeholders remain optimistic about its future performance.

Original press release