NYSE$TDS

Telephone And Data Systems Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

TDS reported mixed results for Q2 2023, with revenue decline offset by progress in key growth areas and cost containment.

TDS reported a decrease in total operating revenues to $1,267 million, compared to $1,349 million in the same period last year. Net loss attributable to TDS common shareholders was $(19) million, or $(0.17) per share, compared to a net income of $18 million, or $0.15 per share, in the prior year. UScellular focused on improving subscriber trajectory and executing growth initiatives, while TDS Telecom saw growth in residential broadband connections and revenue.

  • UScellular focused on improving subscriber trajectory by reducing postpaid churn and executing on growth initiatives.
  • UScellular fixed wireless customers grew 66% to 96,000, and tower rental revenues increased by 10%.
  • TDS Telecom delivered 66,000 fiber service addresses through June and remains on track to deliver 175,000 fiber addresses by the end of 2023.
  • TDS Telecom experienced growth in residential broadband connections and residential revenue per connection.

Headline financials

Total Revenue

$1.27B

Previous: $1.35B-6.1%
EPS (adj)

-$0.17

Previous: $0.15-213.3%
TDS Telecom Broadband Connections

523.6K

Previous: 500.8K+4.6%
Residential Revenue per Connection

$61.97

Previous: $59.67+3.9%
Capital Expenditures

-$629M

Previous: $255M-346.7%
Free Cash Flow

-$115M

Previous: $98M-217.3%
Net Income

-$2M

Previous: $35M-105.7%
Operating Income

$33M

Previous: $63M-47.6%
Gross Profit

$1.27B

Previous: $1.35B-6.1%
Cash & Equivalents

$251M

Previous: $466M-46.1%
Total Assets

$14.4B

Previous: $14.2B+1.2%
Stock-Based Comp

$11M

Previous: $11M+0.0%

Revenue & EPS history

TDS · Revenue · Quarterly

$1.27B

Q2 2023-6.1%vs Q2 2022
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Revenue by segment

TDS · $310M total across 2 segments · Q2 2023

  • TDS Telecom
    $257M+0.4%
  • All Other
    $53M-80.1%

Forward guidance

TDS provided estimates for full-year 2023 results for UScellular and TDS Telecom. These estimates represent management's view as of August 4, 2023, and are subject to change.

Tailwinds

  • UScellular service revenues are estimated to be between $3,025 million and $3,075 million.
  • UScellular adjusted OIBDA is projected to be between $750 million and $850 million.
  • UScellular adjusted EBITDA is expected to range from $925 million to $1,025 million.
  • TDS Telecom total operating revenues are expected to remain unchanged at $1,030 million to $1,060 million.
  • TDS Telecom adjusted OIBDA is anticipated to be between $270 million and $300 million.

Headwinds

  • The 2023 Estimated Results do not reflect any anticipated costs, expenses, or results of the strategic review for UScellular.
  • Final results could differ materially from estimated results.
  • TDS has not completed the reconciliation to Net income because it does not provide guidance for income taxes.
  • The impact of income taxes cannot be reasonably predicted.
  • There is no assurance that any strategic alternatives for UScellular will be successfully identified or completed.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.0%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

38%

15 / 39 earnings

Positive

+67.1%

Q2 2023

Best reaction

-22.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%-7.2%-14.0%
Q4 2025-0.7%-0.4%-9.9%
Q3 2025-2.2%+3.2%+2.4%
Q1 2025-8.6%-8.4%-8.7%
Q4 2024-4.2%-9.6%-7.1%
Q3 2024-6.0%+9.4%+14.9%
Q2 2024-9.9%-3.3%+11.9%
Q1 2024-3.1%-5.6%+22.7%
Q4 2023-22.0%-20.6%-16.3%
Q3 2023-4.1%-4.3%+10.9%
Q2 2023+67.1%+111.5%+171.0%
Q1 2023-15.9%-23.8%-26.3%
Q4 2022+17.6%+12.6%-14.7%
Q3 2022-1.7%-33.2%-38.2%
Q2 2022-3.0%+8.6%+2.5%
Q1 2022-2.0%-8.9%-13.1%
Q4 2021-1.9%-17.6%-11.1%
Q3 2021-1.2%-1.0%-9.5%
Q2 2021+0.9%+4.2%+6.4%
Q1 2021+3.6%+5.1%+8.7%
Q4 2020-1.0%-11.5%+11.0%
Q3 2020+2.5%+7.9%+11.1%
Q2 2020-0.7%+18.7%+15.5%
Q1 2020-4.2%-12.0%+0.1%
Q4 2019+0.2%-17.9%-35.6%
Q3 2019-2.2%-8.9%-11.1%
Q2 2019-3.4%-17.1%-22.1%
Q1 2019+0.7%-0.5%-10.7%
Q4 2018-10.8%-12.7%-14.4%
Q3 2018+14.6%+17.8%+19.3%
Q2 2018+4.0%+15.8%+16.4%
Q1 2018-8.0%-2.7%-6.5%
Q4 2017+10.8%+12.0%+10.9%
Q3 2017-6.7%-7.1%-2.0%
Q2 2017+1.2%+1.4%+4.8%
Q1 2017+4.9%+4.3%+11.2%
Q4 2016-8.7%-17.5%-22.6%
Q3 2016+1.1%+3.7%+10.4%
Q2 2016+1.4%-2.5%-8.9%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q2 2012
Q4 2012
Q3 2012
Q1 2012
Q4 2011
Q2 2011
Q3 2011
Q1 2010
Q1 2011
Q4 2008
Q3 2009
Q3 2010
Q2 2009
Q2 2010
Q4 2009

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