Improvements in retail revenues and ARPU in the quarter, plus momentum for with fixed wireless and tower operations, means full-year guidance remains
It reaffirmed its full-year guidance, with service revenue projected to finish at between $3.1 and $3.2 billion, and EBITDA at between $925 million and $1.08 billion. The firm noted improvements in retail revenues and average user revenue (ARPU) in the quarter, plus momentum for its fixed wireless and tower portfolios.
US Cellular reported operating revenues of $1.03 billion for the second quarter of 2022, ending June 30, versus $1.01 billion for the same period a year ago. Service revenues were $783 million, versus $774 million a year ago. Net income (earnings) was $21 million, compared to $35 million at the end of the quarter in 2021.
Earnings per share were $0.25, compared with an uptick of $0.39 in the year-ago quarter, it said. EBITDA was $539 million for the six months to June 30, adjusted to $550 million. Net income was $74 million in the last two quarters combined. Laurent Therivel, president and chief, said the firm is “continuing to execute on its growth strategy”.
He commented: “[This is] resulting in increased retail service revenues and ARPU in the quarter. We are seeing nice momentum in a number of the growth areas of the business, including fixed wireless and our tower portfolio. Additionally, we are seeing promising early results from our recent moves in the marketplace, including our rate plan guarantee and our existing-same-as-new offers. Halfway through the year, I believe US Cellular is well-positioned.”
US Cellular announced new deals in May with Nordic vendors Ericsson and Nokia to boost its 5G network infrastructure. US Cellular and Ericsson inked a deal which includes the deployment of the telco’s recently acquired C-band and 3.45 GHz spectrum, which paves the way for the provision of enhanced Fixed Wireless Access (FWA).
Its agreement with Nokia is for the Finnish outfit’s massive MIMO radios, macro remote radio heads, and AirScale baseband equipment in the C-Band and 3.45 GHz mid-band spectrum. It is also working with Nokia for the deployment of its standalone 5G core network, expected to be completed by the end of 2022.
US Cellular said in April it is working with Qualcomm and Inseego to launch mmWave 5G services in parts of 10 US cities. It reckons its Home Internet+ solution delivers speeds of up to 300 Mbps, an increase of 10-15 times compared to its 4G LTE home internet offering.
Its FWA service is already available in parts of East Moline and Rock Island, in Illinois; Bettendorf, Cedar Falls, Davenport, Dubuque and Waterloo, in Iowa; Yakima, in Washington; and Beloit and Janesville, in Wisconsin.
