TELEPHONE & DATA SYSTEMS INC /DE/
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
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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.
Jun 30, 2025 · Filed Aug 11, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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 3,400 associates
Operational Overview — TDS Telecom
Total Service Address Mix
As of June 30,
TDS Telecom increased its service addresses 5% from a year ago to 1.8 million as of June 30, 2025 through footprint expansion. TDS Telecom serves 45% of incumbent service addresses with fiber.
TDS Telecom offers 1Gig+ service to 75% of its total footprint as of June 30, 2025, compared to 73% a year ago.
| As of June 30, · 2025 · 2024 · 2025 vs. 2024 | ||||
|---|---|---|---|---|
| Residential connections | ||||
| Broadband | ||||
| Incumbent Fiber | 121,200 | 113,100 | 7% | |
| Incumbent Copper | 106,500 | 130,600 | (18)% | |
| Expansion Fiber | 141,800 | 107,800 | 32% | |
| Cable | 188,200 | 198,500 | (5)% | |
| Total Broadband | 557,700 | 550,000 | 1% | |
| Video | 116,500 | 124,800 | (7)% | |
| Voice | 248,700 | 275,600 | (10)% | |
| Wireless | 1,600 | — | N/M | |
| Total Residential Connections | 924,500 | 950,400 | (3)% | |
| Commercial connections | 184,300 | 201,500 | (9)% | |
| Total connections | 1,108,800 | 1,152,000 | (4)% | |
| Total residential fiber net adds | 10,300 | 10,700 | ||
| Total residential broadband net adds | 3,900 | 2,100 | ||
| Residential fiber churn | 1.1% | 1.2% | ||
| Total residential broadband churn | 1.5% | 1.7% | ||
Total connections decreased due to legacy voice, video, and competitive local exchange carrier (CLEC) connections declines, partially offset by broadband connection growth.
Q2 2024 total connections include 23,700 connections that were part of subsequent divestitures.
Residential Broadband Connections by Speed
As of June 30,
Residential broadband customers continue to take higher speeds with 83% on 100 Mbps or higher products and 26% on 1Gig+ products.
Residential Revenue per Connection
Total residential revenue per connection increased 1% for the three and six months ended June 30, 2025, due primarily to price increases.
Financial Overview — TDS Telecom
The following discussion and analysis compares financial results for the three and six months ended June 30, 2025, to the three and six months ended June 30, 2024.
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | |
| (Dollars in millions) | ||||||
| Residential | ||||||
| Incumbent | $85 | $90 | (6)% | $170 | $180 | (5)% |
| Expansion | 37 | 28 | 31% | 71 | 54 | 32% |
| Cable | 62 | 69 | (10)% | 126 | 138 | (9)% |
| Total residential | 183 | 186 | (2)% | 367 | 372 | (1)% |
| Commercial | 35 | 37 | (6)% | 69 | 74 | (6)% |
| Wholesale | 47 | 44 | 7% | 85 | 88 | (3)% |
| Total service revenues | 265 | 267 | (1)% | 522 | 534 | (2)% |
| Equipment revenues | — | — | (14)% | — | — | 2% |
| Total operating revenues | 265 | 267 | (1)% | 522 | 534 | (2)% |
| Cost of services (excluding Depreciation, amortization and accretion reported below) | 97 | 98 | (1)% | 198 | 196 | 1% |
| Cost of equipment and products | — | — | (6)% | — | — | 25% |
| Selling, general and administrative | 83 | 80 | 3% | 166 | 155 | 7% |
| Depreciation, amortization and accretion | 73 | 67 | 10% | 145 | 131 | 10% |
| (Gain) loss on asset disposals, net | 6 | 4 | 61% | 8 | 6 | 39% |
| (Gain) loss on sale of business and other exit costs, net | (8) | — | N/M | (8) | — | N/M |
| Total operating expenses | 251 | 248 | 1% | 508 | 488 | 4% |
| Operating income | $14 | $19 | (27)% | $14 | $46 | (70)% |
| Net income | $16 | $18 | (10)% | $20 | $42 | (53)% |
| Adjusted OIBDA (Non-GAAP)1 | $85 | $89 | (5)% | $158 | $183 | (13)% |
| Adjusted EBITDA (Non-GAAP)1 | $89 | $91 | (3)% | $165 | $187 | (12)% |
| Capital expenditures2 | $90 | $78 | 16% | $149 | $164 | (9)% |
Three Months Ended June 30, 2025 and 2024
Six Months Ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2025, due primarily to declining connections in CLEC markets.
Wholesale revenues increased for the three months ended due primarily to discrete reserve adjustments, partially offset by continued decline of special access circuits and decreased for the six months ended June 30, 2025, due primarily to the continued decline of special access circuits, partially offset by discrete reserve adjustments.
The 2024 and 2025 divestitures contributed a decrease of $4 million in operating revenues from the comparable three months ended June 30, 2024 and a decrease of $8 million in operating revenues from the comparable six months ended June 30, 2024.
Cost of services
Cost of services remained consistent for the three months ended June 30, 2025, and increased for the six months ended June 30, 2025 due primarily to an increase in employee-related expenses, partially offset by lower video programming and maintenance costs.
Selling, general and administrative
Selling, general and administrative expenses increased for the three and six months ended June 30, 2025, due primarily to an increase in employee-related expenses and advertising costs.
Depreciation, amortization and accretion
Depreciation, amortization and accretion increased for the three and six months ended June 30, 2025, due primarily to capital expenditures on 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.