TELEPHONE & DATA SYSTEMS INC /DE/
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
TDS Telecom Operations
Business Overview
TDS Telecom owns, operates and invests in high-quality networks, services and products in a mix of small to mid-sized urban, suburban and rural communities throughout the United States. TDS Telecom is a wholly-owned subsidiary of TDS and provides a wide range of broadband, video, voice and wireless communications services to residential, commercial and wholesale customers, with the constant focus on delivering outstanding customer service.
OPERATIONS
Serves 1.1 million connections in 31 states
Employs approximately 3,300 associates
Operational Overview — TDS Telecom
Total Service Address Mix
As of March 31,
TDS Telecom increased its service addresses 6% from a year ago to 1.8 million as of March 31, 2025 through footprint expansion. TDS Telecom serves 44% of incumbent service addresses with fiber.
TDS Telecom offers 1Gig+ service to 74% of its total footprint as of March 31, 2025, compared to 73% a year ago.
| As of March 31, · 2025 · 2024 · 2025 vs. 2024 | ||||
|---|---|---|---|---|
| Residential connections | ||||
| Broadband | ||||
| Incumbent Fiber | 119,700 | 109,800 | 9% | |
| Incumbent Copper | 112,600 | 135,300 | (17)% | |
| Expansion Fiber | 133,200 | 100,400 | 33% | |
| Cable | 190,200 | 202,400 | (6)% | |
| Total Broadband | 555,800 | 547,900 | 1% | |
| Video | 118,700 | 128,800 | (8)% | |
| Voice | 256,900 | 279,400 | (8)% | |
| Total Residential Connections | 931,400 | 956,100 | (3)% | |
| Commercial connections | 187,600 | 206,200 | (9)% | |
| Total connections | 1,119,000 | 1,162,200 | (4)% | |
| Total residential broadband net adds | 2,800 | 6,400 | ||
| Residential fiber churn | 0.9% | 1.0% | ||
| Total residential broadband churn | 1.3% | 1.4% | ||
Total connections decreased due to legacy voice, video, and competitive local exchange carrier (CLEC) connections declines, partially offset by broadband connection growth.
Q1 2024 total connections include 18,100 subscribers that were part of the 2024 divestitures.
Residential Broadband Connections by Speed
As of March 31,
Residential broadband customers continue to take higher speeds with 82% on 100 Mbps or higher products and 24% on 1Gig+ products.
Residential Revenue per Connection
Total residential revenue per connection increased 2% for the three months ended March 31, 2025, due primarily to price increases.
Financial Overview — TDS Telecom
| Three Months EndedMarch 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2025 vs. 2024 | |
| (Dollars in millions) | |||
| Residential | |||
| Incumbent | $86 | $90 | (5)% |
| Expansion | 34 | 26 | 33% |
| Cable | 64 | 70 | (8)% |
| Total residential | 184 | 185 | (1)% |
| Commercial | 35 | 37 | (6)% |
| Wholesale | 39 | 44 | (12)% |
| Total service revenues | 257 | 266 | (3)% |
| Equipment revenues | — | — | 23% |
| Total operating revenues | 257 | 266 | (3)% |
| Cost of services (excluding Depreciation, amortization and accretion reported below) | 101 | 98 | 3% |
| Cost of equipment and products | — | — | 47% |
| Selling, general and administrative | 83 | 75 | 10% |
| Depreciation, amortization and accretion | 71 | 65 | 10% |
| (Gain) loss on asset disposals, net | 2 | 2 | (9)% |
| Total operating expenses | 258 | 240 | 7% |
| Operating income | $— | $27 | N/M |
| Net income | $4 | $24 | (85)% |
| Adjusted OIBDA (Non-GAAP)1 | $73 | $93 | (22)% |
| Adjusted EBITDA (Non-GAAP)1 | $76 | $95 | (20)% |
| Capital expenditures2 | $59 | $87 | (32)% |
Operating Revenues
Three Months Ended March 31, 2025 and 2024
Residential revenues consist of:
Broadband services
Video services, including IPTV, traditional cable programming and satellite offerings
Voice services
Wireless services
Commercial revenues consist of:
High-speed and dedicated business internet services
Video services
Voice services
Wholesale revenues consist of:
Network access services primarily related to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom's networks
Federal and state regulatory support, including E-ACAM
Key components of changes in the statement of operations items were as follows:
Total operating revenues
Residential revenues decreased for the three months ended March 31, 2025, due primarily to a decline in legacy markets and divestitures, partially offset by growth in expansion markets and price increases.
Commercial revenues decreased for the three months ended March 31, 2025, due primarily to declining connections in CLEC markets.
Wholesale revenues decreased for the three months ended March 31, 2025, due primarily to a discrete reserve adjustment and the continued decline of special access circuits.
Cost of services
Cost of services increased for the three months ended March 31, 2025, due primarily to an increase in employee-related expenses, partially offset by lower video programming costs.
Selling, general and administrative
Selling, general and administrative expenses increased for the three months ended March 31, 2025, due primarily to a cumulative stock-based compensation adjustment, increase in other employee-related expenses, and advertising costs.
Depreciation, amortization and accretion
Depreciation, amortization and accretion increased for the three months ended March 31, 2025, due primarily to capital expenditures on new fiber assets.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.