United States Cellular ( (USM) ) has released its Q1 earnings. Here is a breakdown of the information United States Cellular presented to its investors.
United States Cellular Corporation, commonly known as UScellular, is a Chicago-based telecommunications company providing wireless products and services across 21 states, with a focus on delivering excellent customer support and a high-quality network to its 4.4 million retail connections.
In the first quarter of 2025, UScellular reported total operating revenues of $891 million, a decrease from $950 million in the same period last year. Despite the revenue decline, the company maintained its net income at $18 million, with diluted earnings per share slightly increasing to $0.21 from $0.20 in the previous year.
Key highlights from the quarter include a 6% increase in third-party tower rental revenues and improvements in postpaid handset results, with gross additions rising and net losses improving. The company also continued its deployment of the 5G mid-band network, enhancing capacity and speed for its mobility and fixed wireless customers. Additionally, UScellular repurchased 328,835 of its common shares for $21 million during the quarter.
Strategically, UScellular is in the process of selling its wireless operations and select spectrum assets to T-Mobile US, Inc., with the transaction expected to close in mid-2025. The company also entered into agreements to sell certain spectrum licenses to Verizon Communications, Inc. and AT&T Inc., subject to regulatory approvals.
Looking ahead, UScellular remains focused on executing its 2025 priorities, which include closing the sale of its wireless business and continuing to invest in customer experience and operational efficiency. The management anticipates declaring special dividends to shareholders upon the completion of the T-Mobile transaction.