EX-99.1 2 usmq120258kex991.htm EX-99.1 Document

Exhibit 99.1
NEWS RELEASE

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As previously announced, UScellular will hold a teleconference on May 2, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.uscellular.com.
 

UScellular reports first quarter 2025 results

CHICAGO (May 2, 2025) — United States Cellular Corporation (NYSE:USM) reported total operating revenues of $891 million for the first quarter of 2025, versus $950 million for the same period one year ago. Service revenues totaled $741 million, versus $754 million for the same period one year ago. Net income attributable to UScellular shareholders and related diluted earnings per share were $18 million and $0.21, respectively, for the first quarter of 2025 compared to $18 million and $0.20, respectively, in the same period one year ago.
Recent Highlights*
•Improved postpaid handset results
◦Postpaid handset gross additions increased; postpaid handset net losses improved
•Third-party tower rental revenues increased 6%
•Ongoing 5G mid-band network deployment
◦Providing capacity and enhanced speed for our mobility and fixed wireless customers

* Comparisons are 1Q’24 to 1Q’25 unless otherwise noted

“In the first quarter, we continued to work towards executing on our 2025 priorities which include successfully closing on the previously announced sale of the wireless business, while remaining focused on investing in a strong customer experience and operating our business efficiently,” said Laurent Therivel, UScellular President and CEO. “I am also pleased with the 6% year-over-year growth in third-party tower rental revenues, as the team continues to market our valuable tower portfolio.”

Announced Transactions and Exploration of Strategic Alternatives for UScellular
On May 24, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approvals and the satisfaction of customary closing conditions. When the proposed T-Mobile transaction closes, UScellular expects the UScellular Board of Directors to declare the first of potentially several, special dividends to UScellular shareholders.

On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.
On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.

Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.


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Stock Repurchase
During the first quarter of 2025, UScellular repurchased 328,835 of its Common Shares for $21 million.

Conference Call Information
UScellular will hold a conference call on May 2, 2025 at 9:00 a.m. Central Time.
▪Access the live call on the Events & Presentations page of investors.uscellular.com or at
https://events.q4inc.com/attendee/224819726
▪Access the call by phone at (888)330-2384 conference ID: 1328528.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.uscellular.com. The call will be archived on the Events & Presentations page of investors.uscellular.com.
About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.4 million retail connections in 21 states. The Chicago-based company had 4,100 full- and part-time associates as of March 31, 2025. At the end of the first quarter of 2025, Telephone and Data Systems, Inc. owned approximately 83 percent of UScellular. For more information about UScellular, visit uscellular.com.
Contacts
Colleen Thompson, Vice President - Corporate Relations of TDS
colleen.thompson@tdsinc.com
 
Julie Mathews, IRC, Director - Investor Relations of TDS
julie.mathews@tdsinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations, including with respect to the expected closing date of the transaction with T-Mobile. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of UScellular's Form 10-K, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K.
 
For more information about UScellular, visit: www.uscellular.com
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United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended3/31/202512/31/20249/30/20246/30/20243/31/2024
Retail Connections     
Postpaid     
Total at end of period1
3,946,000 3,985,000 3,999,000 4,027,000 4,051,000 
Gross additions105,000 140,000 123,000 117,000 106,000 
Handsets68,000 93,000 84,000 73,000 63,000 
Connected devices37,000 47,000 39,000 44,000 43,000 
Net additions (losses)1
(39,000)(14,000)(28,000)(24,000)(44,000)
Handsets(38,000)(19,000)(28,000)(29,000)(47,000)
Connected devices(1,000)5,000 — 5,000 3,000 
ARPU2
$52.06 $51.73 $52.04 $51.45 $51.96 
ARPA3
$132.25 $131.10 $131.81 $130.41 $132.00 
Handset upgrade rate4
3.1 %4.8 %3.5 %4.1 %4.5 %
Churn rate5
1.21 %1.29 %1.25 %1.16 %1.22 %
Handsets1.03 %1.08 %1.07 %0.97 %1.03 %
Connected devices2.40 %2.67 %2.47 %2.47 %2.52 %
Prepaid
Total at end of period1
431,000 448,000 452,000 439,000 436,000 
Gross additions38,000 46,000 57,000 50,000 41,000 
Net additions (losses)1
(17,000)(4,000)13,000 3,000 (13,000)
ARPU2
$30.76 $30.59 $32.01 $32.37 $32.25 
Churn rate5
4.17 %3.70 %3.30 %3.60 %4.06 %
Market penetration at end of period
Consolidated operating population31,390,000 32,550,000 32,550,000 32,550,000 32,550,000 
Consolidated operating penetration6
17 %15 %15 %15 %14 %
Capital expenditures (millions)$53 $162 $120 $165 $131 
Total cell sites in service7,009 7,010 7,007 6,990 6,995 
Owned towers4,413 4,409 4,407 4,388 4,382 
Number of colocations7
2,469 2,444 2,418 2,392 2,397 
Tower tenancy rate8
1.56 1.55 1.55 1.55 1.55 

1First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter.
2Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:
•Postpaid ARPU consists of total postpaid service revenues and postpaid connections.
•Prepaid ARPU consists of total prepaid service revenues and prepaid connections.
3Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.
4Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
5Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.
6Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.
7Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
8Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.
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United States Cellular Corporation
Consolidated Statement of Operations Highlights
(Unaudited)
 
 Three Months Ended
March 31,
 2025 2024 2025
vs. 2024
(Dollars and shares in millions, except per share amounts)   
Operating revenues   
Service$741 $754 (2)%
Equipment sales150 196 (24)%
Total operating revenues891 950 (6)%
Operating expenses   
System operations (excluding Depreciation, amortization and accretion reported below)176 182 (3)%
Cost of equipment sold178 216 (18)%
Selling, general and administrative332 331 —
Depreciation, amortization and accretion163 165 (2)%
(Gain) loss on asset disposals, net2 6 (65)%
(Gain) loss on license sales and exchanges, net(1)(1)18 %
Total operating expenses850 899 (5)%
Operating income41 51 (19)%
Other income (expense)   
Equity in earnings of unconsolidated entities36 42 (14)%
Interest and dividend income3 2 20 %
Interest expense(40)(43)10 %
Total other income (expense)(1)1 N/M
Income before income taxes40 52 (22)%
Income tax expense20 28 (26)%
Net income20 24 (17)%
Less: Net income attributable to noncontrolling interests, net of tax2 6 (75)%
Net income attributable to UScellular shareholders$18 $18 3 %
Basic weighted average shares outstanding85 85 — 
Basic earnings per share attributable to UScellular shareholders$0.21 $0.21 3 %
Diluted weighted average shares outstanding88 88 — 
Diluted earnings per share attributable to UScellular shareholders$0.21 $0.20 2 %

N/M - Percentage change not meaningful
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United States Cellular Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended
March 31,
20252024
(Dollars in millions)  
Cash flows from operating activities
Net income$20 $24 
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities  
Depreciation, amortization and accretion163 165 
Bad debts expense20 29 
Stock-based compensation expense17 13 
Deferred income taxes, net(8)4 
Equity in earnings of unconsolidated entities(36)(42)
Distributions from unconsolidated entities11 22 
(Gain) loss on asset disposals, net2 6 
(Gain) loss on license sales and exchanges, net(1)(1)
Other operating activities1 1 
Changes in assets and liabilities from operations
Accounts receivable1 16 
Equipment installment plans receivable38 2 
Inventory1 24 
Accounts payable(17)(15)
Customer deposits and deferred revenues(8)5 
Accrued taxes29 23 
Accrued interest9 9 
Other assets and liabilities(82)(82)
Net cash provided by operating activities160 203 
Cash flows from investing activities
Cash paid for additions to property, plant and equipment(72)(133)
Cash paid for licenses(2)(11)
Net cash used in investing activities(74)(144)
Cash flows from financing activities
Issuance of long-term debt— 40 
Repayment of long-term debt(5)(55)
Tax payments, net of cash receipts, for stock-based compensation awards(7)— 
Repurchase of Common Shares(21)— 
Distributions to noncontrolling interests(2)(2)
Cash paid for software license agreements(9)(9)
Other financing activities— (2)
Net cash used in financing activities(44)(28)
Net increase in cash, cash equivalents and restricted cash42 31 
Cash, cash equivalents and restricted cash
Beginning of period159 179 
End of period$201 $210 
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United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
 March 31, 2025 December 31, 2024
(Dollars in millions)  
Current assets  
Cash and cash equivalents$182 $144 
Accounts receivable, net925 955 
Inventory, net178 179 
Prepaid expenses63 46 
Other current assets25 21 
Total current assets1,373 1,345 
Assets held for sale1 — 
Licenses4,581 4,579 
Investments in unconsolidated entities479 454 
Property, plant and equipment, net2,394 2,502 
Operating lease right-of-use assets925 926 
Other assets and deferred charges612 643 
Total assets$10,365 $10,449 
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United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
 March 31, 2025 December 31, 2024
(Dollars in millions, except per share amounts)  
Current liabilities  
Current portion of long-term debt$26 $22 
Accounts payable207 242 
Customer deposits and deferred revenues231 238 
Accrued taxes57 30 
Accrued compensation33 93 
Short-term operating lease liabilities140 141 
Other current liabilities113 118 
Total current liabilities807 884 
Deferred liabilities and credits  
Deferred income tax liability, net720 728 
Long-term operating lease liabilities824 822 
Other deferred liabilities and credits570 570 
Long-term debt, net2,829 2,837 
Noncontrolling interests with redemption features
16 16 
Equity  
UScellular shareholders’ equity  
Series A Common and Common Shares, par value $1.00 per share88 88 
Additional paid-in capital1,800 1,783 
Treasury shares(125)(112)
Retained earnings2,822 2,818 
Total UScellular shareholders’ equity4,585 4,577 
Noncontrolling interests14 15 
Total equity4,599 4,592 
Total liabilities and equity$10,365 $10,449 
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United States Cellular Corporation
Segment Results
(Unaudited)
Three Months Ended
March 31,
UScellular202520242025
vs. 2024
(Dollars in millions)
Operating Revenues
Wireless$864 $925 (7)%
Towers61 58 5 %
Intra-company eliminations(34)(33)(3)%
Total operating revenues891 950 (6)%
Operating expenses
Wireless844 896 (6)%
Towers40 36 11 %
Intra-company eliminations(34)(33)(3)%
Total operating expenses850 899 (5)%
Operating income$41 $51 (19)%
Adjusted OIBDA1 (Non-GAAP)
$215 $228 (6)%
Adjusted EBITDA1 (Non-GAAP)
$254 $272 (7)%
Capital expenditures$53 $131 (60)%
1Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which UScellular uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information.

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United States Cellular Corporation
Segment Results
(Unaudited)
Three Months Ended
March 31,
UScellular Wireless202520242025
vs. 2024
(Dollars in millions)
Retail service$660 $678 (3)%
Other54 51 8 %
Service revenues714 729 (2)%
Equipment sales150 196 (24)%
Total operating revenues864 925 (7)%
System operations (excluding Depreciation, amortization and accretion reported below)191 197 (3)%
Cost of equipment sold178 216 (18)%
Selling, general and administrative322 324 —
Depreciation, amortization and accretion152 154 (2)%
(Gain) loss on asset disposals, net2 6 (73)%
(Gain) loss on license sales and exchanges, net(1)(1)18 %
Total operating expenses844 896 (6)%
Operating income$20 $29 (30)%
Adjusted OIBDA1 (Non-GAAP)
$182 $195 (7)%
Adjusted EBITDA1 (Non-GAAP)
$182 $195 (7)%
Capital expenditures$51 $127 (60)%

Three Months Ended
March 31,
UScellular Towers202520242025
vs. 2024
(Dollars in millions)
Third-party revenues$27 $25 6 %
Intra-company revenues34 33 3 %
Total tower revenues61 58 5 %
System operations (excluding Depreciation, amortization and accretion reported below)19 18 4 %
Selling, general and administrative10 7 33 %
Depreciation, amortization and accretion11 11 5 %
Total operating expenses40 36 11 %
Operating income$21 $22 (5)%
Adjusted OIBDA1 (Non-GAAP)
$33 $33 (1)%
Adjusted EBITDA1 (Non-GAAP)
$33 $33 (1)%
Capital expenditures$2 $4 (42)%

1Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which UScellular uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information.
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United States Cellular Corporation
Financial Measures
(Unaudited)
Free Cash Flow
 Three Months Ended
March 31,
UScellular20252024
(Dollars in millions)
Cash flows from operating activities (GAAP)$160 $203 
Cash paid for additions to property, plant and equipment(72)(133)
Cash paid for software license agreements(9)(9)
Free cash flow (Non-GAAP)1
$79 $61 
1Free cash flow is a non-GAAP financial measure which UScellular believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.
United States Cellular Corporation
EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations
(Unaudited)

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliations below. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. UScellular does not intend to imply that any such items set forth in the reconciliations below are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of UScellular’s operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented below as they provide additional relevant and useful information to investors and other users of UScellular’s financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income, Income before income taxes and/or Operating income. Income and expense items below Operating income are not provided at the individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment level.
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Three Months Ended
March 31,
UScellular20252024
(Dollars in millions)
Net income (GAAP)$20 $24 
Add back or deduct:
Income tax expense20 28 
Income before income taxes (GAAP)40 52 
Add back:
Interest expense40 43 
Depreciation, amortization and accretion expense163 165 
EBITDA (Non-GAAP)243 260 
Add back or deduct:
Expenses related to strategic alternatives review10 7 
(Gain) loss on asset disposals, net2 6 
(Gain) loss on license sales and exchanges, net(1)(1)
Adjusted EBITDA (Non-GAAP)254 272 
Deduct:
Equity in earnings of unconsolidated entities36 42 
Interest and dividend income3 2 
Adjusted OIBDA (Non-GAAP)$215 $228 
Three Months Ended
March 31,
UScellular Wireless20252024
(Dollars in millions)  
EBITDA (Non-GAAP)$172 $183 
Add back or deduct:
Expenses related to strategic alternatives review9 7 
(Gain) loss on asset disposals, net2 6 
(Gain) loss on license sales and exchanges, net(1)(1)
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)182 195 
Deduct:
Depreciation, amortization and accretion152 154 
Expenses related to strategic alternatives review9 7 
(Gain) loss on asset disposals, net2 6 
(Gain) loss on license sales and exchanges, net(1)(1)
Operating income (GAAP)$20 $29 
Three Months Ended
March 31,
UScellular Towers20252024
EBITDA (Non-GAAP)$32 $33 
Add back or deduct:
Expenses related to strategic alternatives review1 — 
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)33 33 
Deduct:
Depreciation, amortization and accretion11 11 
Expenses related to strategic alternatives review1 — 
Operating income (GAAP)$21 $22 





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