United States Cellular Corporation (NYSE: USM) reported total operating revenues of $927 million for the second quarter of 2024, versus $957 million for the same period one year ago. Service revenues totaled $743 million, versus $760 million for the same period one year ago. Net income attributable to UScellular shareholders and related diluted earnings per share were $17 million and $0.20, respectively, for the second quarter of 2024 compared to $5 million and $0.05, respectively.
According to Zacks Equity Research, this quarterly report from USM shows an earnings “surprise” of 100 percent. “A quarter ago,” Zacks reported, “it was expected that this wireless telecommunications service provider would post earnings of $0.26 per share when it actually produced earnings of $0.20, delivering a surprise of -23.08 percent.”
“Solid postpaid ARPU growth and continued strong expense discipline is keeping us on track to deliver on our financial guidance,” said Laurent C. Therivel, UScellular President and CEO. “We have taken actions to improve subscriber results that have led to sequential improvement in postpaid handset net additions in the second quarter. While postpaid handset net additions remained negative, we are encouraged by the positive momentum.”
Q2 2024 Highlights:
- Announced sale of wireless operations and select spectrum assets
- Sequential improvement in postpaid gross additions and postpaid net losses
- Postpaid ARPU grew 2 percent; service revenues decreased 2 percent
- Third-party tower revenues increased 1 percent
- Fixed wireless customers grew 40 percent to 134,000
- Strong cost management across the enterprise led to increased operating income, net income and Adjusted OIBDA
UScellular stated it retains its nearly 4,400 owned towers, its equity method investments, and approximately 70 percent of its spectrum assets. The strategic alternatives review process is ongoing as UScellular seeks to opportunistically monetize its spectrum assets that are not subject to the T-Mobile transaction, according to Therivel.
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