Revenue Decline Attributed to U.S. Cellular Business
In the second quarter, Telephone & Data Systems (TDS), a telecommunications company based in Middleton, Wisconsin, experienced a decrease in revenue and swung to a loss. The net loss for the quarter was $19 million, or 17 cents per share, contrasting with a profit of $18 million, or 15 cents per share, during the same period last year. This loss exceeded the expectations of analysts surveyed by FactSet, who anticipated a loss of 4 cents per share.
The company’s revenue also dropped from $1.35 billion to $1.27 billion. The decline in revenue can be attributed to its U.S. Cellular business, which is majority-owned by TDS. Despite this setback, TDS’s shares surged approximately 14% in premarket trading due to the announcement that the company’s board is considering strategic alternatives for U.S. Cellular.
TDS has been actively working to improve its legacy wireline operations by implementing fiber technology. The company is on track to increase its fiber footprint to 175,000 addresses by the end of this year. This is a part of TDS’s long-term plan to upgrade its infrastructure.
