TDS Hits $129.3M Q1 Net Profit as Fiber Footprint Grows 40,000 Addresses
TDS Telecom expanded its fiber footprint by delivering 40,000 marketable addresses and adding 10,900 new residential connections, while acquiring Granite State Communications with 11,000 addresses. Group revenues rose to $309.5M and net income swung to $129.3M, or $1.11 per share, from a $23.2M loss.
1. Q1 Results Overview
TDS reported first-quarter operating revenues of $309.5 million, up from $290.4 million a year ago, and delivered net income of $129.3 million, or $1.11 per diluted share, reversing a $23.2 million loss in the prior-year period.
2. Fiber Broadband Expansion
TDS Telecom delivered 40,000 new marketable fiber service addresses, achieved net additions of 10,900 residential fiber connections and agreed to acquire Granite State Communications in New Hampshire, adding approximately 11,000 addresses to its 1.1 million-address footprint.
3. Array Performance and Spectrum Sales
Array grew site rental revenues 92% year over year and closed the sale of certain 3.45 GHz and 700 MHz spectrum licenses for $1.018 billion and $74.8 million, respectively, recording a combined book gain of $150.9 million ($114.7 million net of tax).
4. Non-binding Array Acquisition Proposal
On May 7, TDS delivered a non-binding proposal to acquire all outstanding shares of Array it does not already own, prompting the formation of a special committee of independent Array directors to evaluate the offer.