UScellular Lowers Capex Target Despite Aiming for Growth in Fixed Wireless

UScellular, a prominent telecommunications corporation in the United States, has unveiled its financial projections for the year 2024. The company aims to target capital expenditures between $550 million and $650 million, a deviation from its 2023 Capex of $611 million.
UScellular store
Michael Irizarry is the Chief Technology Officer (CTO) of USCellular, responsible for network deployment.

In terms of service revenue, UScellular is setting its sights on achieving $2.95 billion to $3.05 billion for 2024, in contrast to the $3.044 billion it garnered in 2023.

REVENUE

During the fourth quarter of 2023, UScellular has reported revenues of $1,000 million, a slight decrease from $1,048 million for the same period the previous year. However, the net income for the fourth quarter of 2023 saw a notable improvement, amounting to $14 million compared to a loss of $(28) million in the corresponding period of 2022.

For the full year 2023, UScellular recorded operating revenues of $3,906 million, slightly lower than the $4,169 million reported in 2022. Despite the revenue dip, net income for 2023 rose to $54 million from $30 million in 2022.

UScellular highlighted a 2 percent growth in postpaid Average Revenue Per User (ARPU) in 2023, indicating a positive trend in customer spending habits. Additionally, the company reported a significant surge in fixed wireless customers, which grew by 46 percent to reach 114,000. Tower rental revenues also experienced growth, increasing by 8 percent to $100 million.

“In 2023, we made significant progress on our 5G network deployment, and we delivered strong results in fixed wireless. Though we experienced challenging subscriber results in an aggressive competitive environment, we were able to drive in profitability year over year,” Laurent Therivel, President and CEO of UScellular, said.

Looking ahead to 2024, Laurent Therivel emphasized UScellular’s commitment to enhancing subscriber results, fostering growth in fixed wireless and tower segments, and maintaining financial prudence while advancing the network through mid-band deployment.

On August 4, 2023, Telephone and Data Systems (TDS) and UScellular announced the commencement of a strategic review process to explore various options for UScellular’s future. This process is still ongoing, indicating potential changes on the horizon for the telecommunications giant.