United States Cellular Corporat Stock Earnings Reports

Key points for investors: TDS closed the sale of UScellular to T-Mobile for $4.3 billion, simplifying the company and unlocking significant shareholder value; Array Digital Infrastructure (the spun-out tower business) emerges with ~4,400 owned towers, a new 15-year master license agreement (MLA) with T-Mobile that includes 2,015 committed colocations (plus 1,800 interim sites) and improved long-term revenue visibility; Array has agreements to monetize roughly 70% of its spectrum and expects ~$2.0 billion of additional gross proceeds from AT&T and Verizon transactions (AT&T expected H2 2025; Verizon expected Q3 2026), with anticipated special dividends to shareholders after closings; Array will incur wind-down costs through 2025–2026 as it transitions from wireless operator to independent tower company and will provide tower-specific reporting beginning in Q3 2025; TDS expects to receive ~ $1.63 billion pro rata from Array’s $23/share special dividend and plans to redeem ~ $1.1 billion of higher-cost debt, saving ~ $80 million of annual interest and lowering consolidated average cost of debt to just over 6%; S&P upgraded TDS to investment grade (BBB-) and removed it from credit watch; capital allocation priorities include (1) organic fiber investment, (2) targeted M&A to accelerate fiber growth, and (3) shareholder returns once growth opportunities are quantified; TDS Telecom appointed Ken Dixon as CEO of TDS Telecom and is executing an aggressive fiber build: Q2 added 27,000 new fiber service addresses and 10,300 fiber net adds, with a 2025 target of 150,000 new fiber addresses and an expected milestone of 1.0 million marketable fiber service addresses in H2 2025; long-term fiber target remains ~1.8 million marketable addresses with 80% served by fiber and 95%+ capable of 1 Gbps; updated 2025 guidance for TDS Telecom: revenue $1.03–1.05B, adjusted EBITDA $320–350M, adjusted OIBDA $310–340M, CapEx unchanged ( >80% to fiber); operational notes: reported tower tenancy will drop to ~1.0 on Aug 1 (excluding T-Mobile interim sites) due to loss of UScellular as a tenant and gain of T-Mobile under the MLA; management emphasizes opportunistic monetization of remaining spectrum, disciplined capital allocation, and focus on execution to drive long‑term margin and shareholder returns. Risks: AT&T/Verizon spectrum deals subject to regulatory approvals, continued wind‑down costs, and execution risk on fiber builds and M&A.