Telephone And Data Systems, Inc. (NYSE:TDS) reported Q3 FY23 revenues of $1.278 billion, against the consensus of $1.277 billion. Revenues slumped 8% Y/Y.
The company reported a loss of $(0.16), missing the consensus of ($0.11) loss.
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 United States Cellular Corporation (NYSE:USM). The process is still ongoing.
At the end of the third quarter of 2023, Telephone And Data Systems owned approximately 83% of UScellular.
UScellular revenues declined 11% to $963 million. Meanwhile, TDS Telecom segment revenues remained flat Y/Y at $256 million. TDS Telecom segment delivered 61,000 fiber services addresses in Q3 and 127,000 year-to-date.
TDS exited the quarter with cash and equivalents worth $293 million. Long-term debt as of quarter-end was $3.840 billion.
The company is increasing the full-year 2023 fiber address goal of TDS Telecom to 200,000.
“At UScellular, while working to improve subscriber results amidst a challenging market, the organization’s financial discipline has enabled the team to deliver a notable increase in profitability,” said LeRoy T. Carlson, Jr., TDS President and CEO.
“And its growth initiatives – the tower portfolio and fixed wireless services – are both contributing nicely to the gains,” Carlson added.
FY23 Outlook: TDS sees FY23 UScellular service revenues of $3.025 billion-$3.075 billion, unchanged from the prior view.
Operating revenues forecast for TDS Telecom is unchanged in the range of $1.03 billion-$1.06 billion.
Price Action: TDS shares are trading higher by 2.26% to $19.47 on Friday.
