TDS概述了UScellular出售后1.03亿-1.05亿美元的收入目标和每股23美元的特别股息

Earnings Call Insights: Telephone and Data Systems (TDS) Q2 2025

Management View

• Walter Carlson, Chairman, President & CEO, highlighted the closing of the UScellular wireless business and spectrum sale to T-Mobile, describing it as a $4.3 billion transaction that "unlocks significant value for shareholders and strengthens the balance sheets at both Array and TDS." He stated that the company will now focus on the tower and fiber businesses, introducing Array Digital Infrastructure, Inc., as the new name for the towers business. Carlson emphasized, "With approximately 4,400 towers, Array has the strength and stability of the new master license agreement with T-Mobile." He also announced Ken Dixon as the new CEO of TDS Telecom, noting his decades of telecom and fiber experience.
• Vicki L. Villacrez, Executive VP, CFO & Director, stated, "To recap, $1.7 billion in debt was assumed by T-Mobile in an exchange offer, leaving approximately $364 million on the Array balance sheet." She announced a special dividend: "On August 1, the Array Board of Directors declared a special dividend of $23 per share that will be paid on August 19. TDS will receive its pro rata share of the dividend or approximately $1.63 billion." Villacrez outlined plans to redeem $1.1 billion in debt, resulting in approximately $80 million in annual interest savings.
• Douglas W. Chambers, Interim CEO, Interim President & Director, explained, "As we have discussed previously, the sale of our wireless operations to T-Mobile is a win for our customers and for our associates." He also described ongoing spectrum sales to AT&T and Verizon for $2.0 billion, with proceeds expected later this year and into 2026.

Outlook

• The company updated its 2025 guidance for TDS Telecom, projecting revenues in the range of $1.03 billion to $1.05 billion. Adjusted EBITDA is expected to be $320 million to $350 million. Adjusted OIBDA is expected to be $310 million to $340 million. CapEx guidance remains unchanged. Management noted, "We have updated the ranges for revenue, adjusted EBITDA and adjusted OIBDA to reflect the divestiture of our Oklahoma ILEC market, which was not included in our previous guidance as well as ongoing declines in our cable and copper markets."
• Management expects Array to receive $2 billion of proceeds from pending spectrum sales with AT&T and Verizon, subject to regulatory approvals. "We anticipate Array to put in place a regular dividend once the spectrum transactions have been completed," Villacrez stated.
• No operational or financial guidance was provided for Array's tower business for 2025, with disclosures planned for Q3 2025.

Financial Results

• Third-party tower revenues increased by 12% and the number of third-party colocations increased by 6% year-over-year. Chambers attributed part of this to bringing the sales function in-house in Q4 2024.
• Distributions from noncontrolling investment interests increased from $58 million to $77 million compared to the prior year, with $23 million due to nonrecurring distributions from Verizon wireless partnerships.
• TDS Telecom delivered 27,000 new fiber service addresses and generated 10,300 fiber net additions, leading to 19% growth in total fiber connections since last year.
• Average residential revenue per connection rose 1% year-over-year due to price increases. Overall revenue declined 1% due to divested markets, which accounted for a $4 million decrease.
• Total operating revenues for TDS Telecom were down 1% year-over-year; excluding divestitures, revenue increased 1%.
• Cash expenses rose by $2 million year-over-year, aligned with investments in sales, marketing, and transformation efforts.

Q&A

• Richard Hamilton Prentiss, Raymond James: Asked about plans to expand and accelerate the 1.8 million fiber service address goal. Kristina Bothfeld, VP of Finance & CFO, responded that there is "significant opportunity for Edge-Outs in our footprint to further expand our fiber footprint," and more details will be shared in future quarters.
• Prentiss inquired about leverage targets. Villacrez confirmed, "We expect to stay at 1.5x, which is really all the debt is paid off at the TDS level and with leaving the preferreds in place."
• On construction capacity, Bothfeld said, "We feel really confident in hitting our 150,000 address goal for the year."
• Prentiss also asked about cohort analysis and market penetration. Bothfeld stated the company expects "around 25% to 30% penetration" by month 12 in expansion markets and "65% to 75% penetration" in E-ACAM areas.
• Sebastiano Carmine Petti, JPMorgan, questioned the trajectory of fiber broadband additions and competition. Bothfeld reiterated confidence in year-over-year improvement in fiber net additions, citing an aggressive presales model.
• Vikash Harlalka, New Street Research, asked about the MVNO launch. Bothfeld replied, "We just launched in the second quarter to all markets across our footprint," and discussed phased rollout and pricing strategies.
• Sergey Dluzhevskiy, Gabelli, probed tower business growth strategy. Chambers highlighted, "Our new colo applications in the first half of 2025 are up over 100% versus first quarter of 2024."

Sentiment Analysis

• Analysts pressed for details on fiber expansion, leverage, and capital allocation, with a tone that was neutral to slightly positive, seeking clarity on execution and future reporting.
• Management maintained a confident and optimistic tone in both prepared remarks and Q&A, frequently referencing momentum, strong execution, and future opportunities. Villacrez's statement, "We are very pleased with this rating and believe it reflects our strong balance sheet, valuable assets and growth outlook," exemplifies this.
• Compared to the previous quarter, both analysts and management displayed increased optimism, with more forward-looking language centered on post-transaction growth and capital deployment.

Quarter-over-Quarter Comparison

• The current quarter featured the completion of the UScellular and spectrum sale to T-Mobile, whereas the prior quarter focused on preparing for the closing.
• Guidance was updated to reflect divestitures and ongoing declines in legacy markets, while the previous quarter left guidance unchanged.
• A new CEO was appointed at TDS Telecom, and the company rebranded its towers business as Array Digital Infrastructure.
• The current call emphasized capital allocation, special dividends, and a focus on fiber and tower growth, shifting from prior emphasis on preparing for transactions and cost optimization.
• Analysts in the current quarter were more focused on growth execution and reporting clarity.

Risks and Concerns

• Management cited ongoing wind-down costs as the business transitions from wireless service provider to a tower company, warning these "will negatively impact profitability and adjusted EBITDA during this period."
• Spectrum sales to AT&T and Verizon remain subject to regulatory approvals and closing conditions, with variable timing.
• Competitive pressures in fiber expansion markets and ongoing declines in cable and copper markets were acknowledged as risks.
• Management highlighted the importance of deploying proceeds from spectrum sales efficiently and indicated that holding excess cash is not planned.

Final Takeaway

TDS enters a new phase following the UScellular sale and spectrum deals, with a sharpened focus on fiber and tower businesses. Management underscores its strengthened balance sheet, plans to return significant value to shareholders—including a $23 per share special dividend—and a commitment to capital deployment for fiber expansion and tower growth, while acknowledging transitional costs and regulatory dependencies ahead.

Read the full Earnings Call Transcript