USM - Earnings call transcript Q3 2020 | United States Cellular Corporat

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the TDS and UScellular Third Quarter 2020 Results Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference call over to your speaker today, Jane McCahon. Please go ahead.

Jane McCahon

Kinsey. you, Thank thank and for us. joining Good you morning all out best are wishes We do you very send to families want that our and well. your presentation TDS accompany to aware on which the want you section we websites. find the have of Relations' the I you can prepared UScellular comments our make to Investor this and morning, of all President Officer; Financial are Financial Executive Vice Sereda, Chambers, me With Officer; UScellular, President Financial TDS, from from and today Executive and Senior and Telecom, Officer; offering Pete President and LT Vice Executive from Chief Therivel, and of Finance Doug Vicki prepared Chief Chief Vice comments Chief Officer. President Villacrez, TDS on This UScellular TDS and websites. call simultaneously Investor is webcast the being Relations this call including Please websites see the non-GAAP on for to slides reconciliations. referred Operating of for or Before wireless OIBDA, Taxes, guidance Amortization, or Before adjusted contributions adjusted Amortization Depreciation and provide the and UScellular's both and highlight Depreciation Earnings Interest, partnerships. to Income EBITDA, We and the filed UScellular their and releases TDS yesterday. X-K, SEC including press Forms Forms XX-Q

As future review shown this in about and subject Please X, statements risks in harbor forth safe and results contains call discussed in set expected presentation to information and SEC our included filings. and are the press our forward-looking during financial uncertainties. that extended and on paragraphs releases the the events the Slide versions

are Raymond we SMID Company and Showcase arrange Cap to us an Global please out In terms policy, November the phone of virtually and we video TMT policy can or our upcoming so IR our open-door is now XX, Conference schedule, on open something. more James of be attending virtually And virtually December Slide X. reach X, if UBS we the will XX on attending open

Pete? and over the to everyone I'll want any XXX, turn call call related over, to to questions the Sereda. Auction the FCC's Auction we FCC the RDOF due to now, Auctions. turning do to not will responding Pete Rules related to be Anti-Collusion Before remind I that And

Peter Sereda

Thanks, comments and make sheet good some brief liquidity Jane, going position. I'm balance to the our about morning, everyone. and

I'd results the so, businesses to financial doing recognize quarter. during operational impressive and like both Before of the

flexibility we've past of As on one our maintaining of pillars strategy. corporate is calls, the discussed financial

levels, sufficient resources retain revolving Over the relatively fund credit we the leverage to facilities we undrawn worked debt cash balances, at maturities, have and to need low have same we sure making long-dated financial the significant years, our businesses. while that time

the continued equivalents, of $X.X loans immediately you position As see the EIP on tap favorable available to due in quarter, facility. cash August. notes on conditions portions opportunistically took million financial typical in can September of in TDS of cash and facilities, for funding a market as and retail certainly billion when undrawn conditions very credit Slide us UScellular for securitization consisting our market of are sources funding favorable, including to strong X.XX% XXXX. advantage senior is $XXX undrawn It X, they term XX issued have available In were and

from upsized financing $XXX meaningful that the $XXX alternatives. on funding relative of of of slide, the the factors million. impact account instance, conditions, of lack taking cost EIP all-in our into retail callability, In its covenants, this market the securitization UScellular highlighted As judge October, and operations, In to have course, market execution, on given lack of favorable number we business million term, potential potential we relatively of other ease to debt was agreement a including sources. all

now turn sum, strong can our growth in raise other by a funds. our LT. will our which this financings, identified the term call invest are than is position we against of of cost in receivables facility LT? the some of financing over we both lowest a very solid in and opportunities In have shorter While businesses. pool to to I we

Laurent Therivel

technologies September just point evolve Thanks, months This brief elevate to this that provide before that with really our Pete. we for introduced over that services out and to reflects I modern much I've believe we time. on been new progress the looking page, kind logo provides our pass I'm want and But the the hard look, update X on made job UScellular morning, you just more Good of program all a this Page we already to rapidly brand. think another logo is a the of I in and and everybody. we've of aspect forward customers. to It's evolving X, to the the providing by

You in step. brand first logo see the would this the in marketplace quarters, this to expect the is further coming changes but to

Page to turn about little the a X quarter. bit and Let's talk

the to a we how impressive I is. really and to provide devices with churn think talent and of I'm credit it's So reported saw that's base. strong team us and connected We really coupled evidence but proud quarter We just executed. of of value financial helped we our the subscriber the and grow results organization. essential industry how our sales customers services that strong ascribed also the the The had low and of resiliency

are of is drove also our couple increased later that year provide in EBITDA iPhone one the on going Those comparability a details factor for that moment. expense launch. remind is you do significant more Doug to the and a impacted that maintained the to primary drivers want year-over-year increase to We that XX% guidance I discipline adjusted results year-over-year. of

about the kick XG year. to in the timing devices support help appeal late holiday was to during our both competitive ready existing iPhone us We're launches, XXX October we're last customers really have non-traditional as and is we to future. utmost that and Similar and holiday-selling of it a our series pleased as keep should Safety the challenges to off employees to pandemic-influenced our new spread are megahertz all our full we The who also and consideration to pandemic. our timing serving safe pandemic. selling traffic the excited over their So device the year, associates customers Like to and important really importance. season. network that deploying support from that the businesses believe new out third requirements and customer that the XX to frontline that currently and in millimeter upgrade customers and the it's season customers as face new quarter very launch of includes we're of as in this previous how you wave continue this well And is devices. offers launch our we spectrum this know was

open store continues traffic below trend but prior the year levels. Our throughout to quarter, stores remained

expense. We continue customer favorability and that payment experience contributed favorable have to in year-over-year bad of debt to in terms behavior

distance to entered completed Qualcomm Talking partial In or millimeter bit addition, per XG, about Technologies our record in to near to into over FCC's Keep we're of going arrangements. that. cell a we're payment in per kilometers extended This XG our a Americans range with the the future about in second excited connect Pledge with closer the and the to with and ranging payment XX% made gigabits world second megabits over from Connected customers XXX speeds or an is working wireless site. than to that respect just participation be able X.X pledge Ericsson, session paid the the and we on wave participated a means edge communities with front, XG data X it fiber-like of that more speeds

cell spent XG so to you, company. year-end months team. Our a couple organization, to our briefly going turn customers, track. employees have XG culture on in sites program our that XX% fantastic the We of and tell of speaking with and By network to I've modernization I to we're last overall our continues leadership deploy this have about be handle to traffic. we

We have amazing associates.

award-winning We have an network.

distribution We have care. customer and great great

promote we're even that flattening making This redefined and of roles. and create organizational more of of process. organization process part decision-making more agility. changes, And the some the our includes as some faster we've speed leadership During a to to decentralized going

Roberts Jagher operational and Brand marketing, Kerr Verchele is in Kimberly responsible Management. like Consumer who So talents responsible Eric for Madock now terrific We've Courtland brought new into Operations, Sales some for also for sector is partnership Summerford, maximizing be expanding our development, our and tower the as business well our to enhancing participation focusing assets. government from on in returns the Austin business the as going is in

his me. countless I given want just serving take Jay him XXXX contributions year to as a thank and to He's to currently to company part restructuring, has special outstanding and want I UScellular. moment advisor thank As moment who formerly take also effective a X, he Officer. just Ellison, is January that Chief our Jay has Operating of to the XXXX. leadership first be retiring Jay in the to a organizational to the was he announced for going joined

And important that for timing my on we're We infrastructure. me the improving it's to of issues Given of feeds, of most a in about House, who forums. comment it's call, don't X are the focus White American guess regularly the with situation. this to make worthwhile just occupies and said, updates election. of to that watching like brief And Twitter refreshing closely regardless our the being see you, I probably on that, and and my base. in separate talk this think hope will the that other customer to is expectation investing our critical I And administration part really as

focused as leadership put affordable that are a in serve to to regardless to ensure will in service. particularly rural wins That's to to on expanded G to spectrum need and resonate of regardless going of are commercial access access ensuring competitiveness ensure we this be reach in focus company. on for the XG, secondly, wireless First, use. election. expensive We're American and we strategies to place areas. think we need These to But who that difficult issues quality,

to quarter. of organization So the we to dedication results I I operating hard requires of turn the call entire just the flexibility. strong operational in quarter, moment great Doug, want to unprecedented had the and you to the We're team. times posted and testament it is thank this really take the to a a over We've before amount work say a which huge truly for

in really a think strong season. the I moving holiday position into busy we're

it that, Doug? So let me over turn with Doug Chambers. to

Douglas Chambers

Good morning.

primarily Let connected than and quarter Slide $XX to the feature demand on ARPU is the given Postpaid phone months. about partially decreased is mitigated That launch. primarily to store-traffic more devices. handset X. third the past by increased on extent connections This results the XX and quarter helps by me drive activity lesser X,XXX connections due smartphone over Total touch for higher switching of additions gross that the during due to and lower iPhone the XX,XXX of decrease to shown delayed COVID-XX by smartphone postpaid increased ARPU. service revenue course a impacts briefly during decreased the

increase additions remote was increase to driven and in meet hotspots, XX,XXX gross fixed device connected need their products an routers for saw COVID-XX. customers of wireless a connectivity seeking by year-over-year. devices we additions mentioned, demand of As to wireless impacts by the of due by as gross This result

we COVID decrease in activity as During of year saw had store traffic year-over-year QX, to had and a although year. related well as we negative gross the activity store decline XX% impacts pricing prior on impact the when than in device connected an iPhone prior in traffic changes service heavier stronger the remains The average plan additions of some launch.

lower levels. X.XX% was Slide bars, blue due to customer This primarily X.XX% the comment switching pledge Total remain a devices of the handsets were customers FCC June low more their due altered X.XX% resulting current year ago. on on for you we a are is devices XX% was would and XX X% XXXX connected year-over-year. Postpaid on of payment churn in handsets activity And or Keep shown handset upgrading connected also postpaid year June than increase the on as Americans to behaviors by that lowered from X. the COVID-XX Pledge rate And were pandemic. arrangements. want also both at transactions was shopping ago. ended combining XX. postpaid down with and saw The to quarter churn a as at depicted the running expect, on devices Connected third churn, in I us very upgrade churn Next, on customers Currently, the

lower financial service million. increased $XXX year-over-year. slight the Total X. slide, partially The increase increase by revenue on to in and to for service revenues million third rates million Retail accounting a I'll $XX data turn million. roaming Slide of quarter extent volume. increased were in year. to revenues a billion, a an is decline let's postpaid an a Other subscriber operating on the a rental That $X.XXX million revenues year-over-year $XX decrease by $XX higher average per lesser revenues million, service of $X revenues cover was which a revenue partially decrease were miscellaneous revenues Now, by $XX year-over-year base. decrease next results due driven offset adjustment by the revenues and user, tower Inbound was the prior average to the tower due a increase rental that offset to in rental prior-year in other data tower

Finally, revenues million equipment year-over-year new sales decrease lower accessory sales. sales $X by smartphone a due decreased unit to in and

tablet Slide regulatory $X.XX increased per basis, Now quarter, contribute about less $XX.XX or and X% fewer approximately factors several in average $X.XX revenue or XX. comments a smartphones. revenue The on for which or more than Average user revenue on basis recovery up revenue connection a device an X% few by protection grew revenues year-over-year. year-over-year. by per account per revenues, proportionately was driven increase third postpaid shown connections, having the a unit was increase including At

of during part caring offset to As we the elected through charges crisis, overage for charges to March waived increases from our These partially the July. COVID-XX waive ARPU. customers

continue Slide rollout, XG network important. and our to modernization as of towers remains control XX, Turning our we multiyear very

are provide and to location when move income slide technology the it our very evolution. through that owning towers operational flexibility a growth the going ensure which added our have located gives By of from important to to we equipment, We tower, visibility you're optimal the we the is us at rental towers.

our support recognize a and evaluate also options. we financing along provide alternative, with they we network our towers that which strategy, valuable the are other While financing

seen you rental tower into since growth have As can we a agreement, the see on in slide, entered revenues. steady we third-party marketing

continue to assets. will We from growing on strategic focus revenues these

things amortization XX. gains Moving I'll depreciation, this to refer adjusted I and simple, want and income income. on accretion, losses. measure comment as and for to keep Slide operating to operating To adjusted

adjusted at $XXX million operating $XX of As increase or slide million, the bottom the of shown income XX% year-over-year. an was

earlier, decrease system slight I As increased cash a $XX year-over-year. year-over-year. billion, revenues million operating million, year-over-year. X% total or $X.XXX $XXX Total were operations Total commented decreasing expense were expenses

year-over-year lower unit reduction driven due decreased general a to accessory Selling, expense. mainly increased X%, rates. driven primarily Excluding a $X operations expense by increase cell X% that Note off-net customers to XXXX. due in the number system XX% system $X by roaming million of debts XX% and partially X% debts offset smartphone in X% sales lower of and administrative expenses usage expense in expense total bad write-offs $XX decrease higher or in primarily Bad expense, decreased by equipment year-over-year a data $XX by or year-over-year. rent Cost expense. Roaming new by decrease grew driven decreased increased lower sales million fewer a and sales. million site sold or million usage non-pay by versus EIP XXXX due in year-over-year to

adjusted XX, and equity adjusted along $XXX income to our million, method improvement a with quarter to or Adjusted as investments the dividend adjusted offset and for $XX Turning in entities, of EBITDA as income operating by XX% with the incorporates earnings was due and million starts interest earnings in the for a Slide EBITDA income. which income. operating an decrease year-over-year interest increase increase unconsolidated well equity in partially

XX. Slide to Moving

have overall and number quarter results our the in improved year, guidance where are Given this of we revised strong visibility the ways. in a we given XXXX

our billion midpoint. to to First, range $X.XXX we $X.XXX maintaining the a have service for narrowed guidance of revenues billion

income $XXX and Adjusted EBITDA, million. For midpoint $XXX $XXX the we is expected both EBITDA million now $X.XX adjusted and be between increased Adjusted expected be to and between income now billion. adjusted have million to is operating operating and narrowed range. the

planning for reflected these We are activity aggressive season, holiday which is in promotional during the estimates.

for guidance million We work meet our year. deployment million are as the goals maintaining at $XXX range we to for expenditures the to capital our $XXX

successfully to year February. those to out to over turn to close in Vicki? positioned We Vicki now are Villacrez. you the I will we'll well look forward the results and reporting call

Vicki Villacrez

third deployment A-CAM and include doing generate priority. to fiber everyone. with higher work TDS sales operational respectively, very our progress we We and continue state to up advancing X%, right. a Thank grew our growth significant adjusted you, existing EBITDA, strategy X% strong and morning, grant, had Telecom revenue we're on These promote satisfaction plant we both and and as our strategic and good and Doug, customer and All the upgrade our quarter. broadband markets. made in to

prevent in to me Let the and probably to by way steps actions day-to-day spread caused a doing will begin COVID-XX time. quarter. of continue taken update Disruptions an first long taken things impact its by giving our on for we've and the

their to We shown need enhance partnering to spotlight to pandemic our monitor economy, providing ensure we share in of with and how times services be and networks customers, community our a are to important those continue We our support service to just to on our and and connectivity availability is Certainly our keep have established to society our especially all during protocols proud rural has safeguard safe. and underserved these resources markets. and critical programs. and customers employees the our to critical we these of are

also we broadband election, provide high have we'll it cooperatively history administrations the to continue point part critical working our a and economy emerging a of and relates from are of to order inflection in so with quality, become in trends. has workplace and The we America. to to rural an both As do service be new parties positioned affordable to pandemic

that important we increasingly are and to to and broadband people rural from human positioned spread provide capital become cornerstone. that perfectly we'll innovation to businesses and connection provide the and As areas, allows services succeed, cities

as from third such we presented dependencies which momentum markets, contractors, are as vendors, have and leveraging learning on challenges future in projects. during diverse expand and to this pandemic, create local new governments into parties we Finally,

launch progressing largest cloud TV+ across our market. with our markets and IPTV called our are of our cable TDS across We TV product

across its early its we is While focused ensuring launch, success our it on in still are markets.

We are to the feedback to continue In continue pre-sales to out-of-territory our and TV+ remaining market. rolling fiber out-of-territory assessing currently markets to cable We out initial product. the our upgrades expectations. TDS market, and our to customer fiber exceed making plan

and Washington, clusters Spokane, service and We installing in recently followed construction are activities. in launched its closely currently pre-sale Idaho Wisconsin our began after which

markets remain community. on additional the focused We identified through in are have Wisconsin that in X markets and construction criteria our expansion construction attractive and clusters. completed evaluating our major remaining We've selection support

achieving building and We by our drive providing our is our demand the XX. in markets In faster speeds to are A-CAM obligations. year committed utilize Overall, established investment marketing markets products we underserved our priorities to targeted services on continuing strong. strategic This of the remainder our as necessary is local outlined meet to for through all areas. we Slide remain to

let as our of from on growth Now, acquisition. our is shown This quarter highlight increased initiatives result Consolidated XX. the X% the Slide broadband financial the prior year. cable the the contributions from for revenues me Continuum results and

markets to are increases of and contribute million incremental $XX $XX million video the September, Our for into entry new is revenue. Through expansions and wireline, has expected revenue driving year. our over fiber broadband produced on

is see acquisition. expenses Cash growth X%, half impact from ARPU strong of the In broadband to addition the and residential continue we cable, increased from in subscribers. acquisition, which to about

grew expenses million average increased gig our customers XX% our Capital cost a to our deployments base, in and to increase broadband our This based fiber fiber related our success product. offering. increased detail expand broadband IPTV million. X% our residential a our taking to quarter including beginning we Across with expense, offering the driving addition, out-of-territory network is video markets remains Wireline our investment Wireline the exceeded EBITDA a up are fiber residential speeds in launching XX% at I speed now, total facilities. moment, are and let's for spends. XX. adjusted XX, in an drive X perspective, existing in time, our with increase markets, will our in customers megabit $XX year into fiber continue customers X% of increase is and XX% X% per in to to as Video growth speeds to $XX maintain broadband take quarter. profitable to upgrade and year increases residential fortify Revenue cover and are and as expenditures more market ago. new fiber broadband product In important to markets market to connections to a customers, revenue a compared markets. program of up on X% our but residential Slide ago. or connection and connections to same we for in from turn in IPTV we wireline From taking our continue new helping of segments our wireline XX approximately XXX the XX% our greater our to us this in a which grew we're expanded video we Broadband

as is metric expand markets, strategy these and new product. of new to the services increase into TV+ our through this Our TDS value we

video. progress into year in we're which and leading also our wireline markets Our IPTV our the our shows existing footprint build. making footprint fiber This fiber and investment is in expansion, today. total further this XX includes multi-year opportunity to about Slide out-of-territory services XX% of leverage fiber cover

of served the is is by year This XX% revenue years service fiber, wireline to As wireline now our ago. expanding from over footprint XXX,XXX are XXX,XXX while several the also of a X% growth strategy last up addresses total service result addresses. this XX% or which driving a

expectations And to we rates up addition have in completed in exceeding to of generally launched period. Our roughly addresses take be related we addresses Overall, over construction XX,XXX a addresses XXXX program. year-to-date, have fiber turned to the plans date. current service fiber XX,XXX include this that will the built are XXX,XXX multi-year in we areas

though some in delays service mentioned experience will which year, some I've the previous are in continue growth even We construction fiber delivery shift expecting the we address quarters, remainder of of next in to year. into this as to accelerate our

primarily XX. financial X% a increased X% well as driven offset by Looking timing. to by quarter growth CLEC certain decrease residential Wholesale strong results video as million in modems EBITDA due which by X% the Wireline due Slide in legal and the million. connection. previously support slightly broadband million expenses revenue, expense. growth Total the state million expensed partially connections within residential were to Consumer growth to in at voice to driven lower product revenues increased higher of expenses, from fees largely cash expenses increased from USF wireline decreased connections. wireline new X% increased and revenues to revenues broadband $XX $XX and on flat mix, offset to capitalization and $XXX video by X% $XX lower In employee adjusted programming the total, maintenance

On continued the XXX,XXX, commercial grew Moving connections total total the which up XX. XX% points cable broadband and XX,XXX million by to basis XX% Slide for by acquisition customers. services. growth the cable broadband revenues included to XX, revenues XX% penetration Slide increased a in Total XX%. cable in increase XXX driven customers from acquisition; to broadband to connections and driven Cable residential without connections. increase $XX X% total on part both an cable increased continue value organic our broadband grew revenues to organic as acquisition in basis to On

has million X% driving growth including service Also increase $X broadband reliable in fast expense. total by due Cable a in revenue acquisition connection, residential increase value costs cash and XX% related XX%. to or XX% higher revenue average of employee growth organic connection the product broadband changes excluding generated on per residential the an to price focus or mix revenue due expenses X% increases. and driven primarily acquisition increased increased to Our

year. cable On XXXX this As revised the adjusted for guidance $XX result, performance XX we've to our a the Slide provided EBITDA strong million so reflecting quarter. XX% increased in far

$XXX to our We and are are expenditure range narrowing million midpoint expectations and EBITDA the the revenue $XXX guidance our by million. maintaining to for adjusted increasing and increasing capital

with goals We uncertainty the the the construction remain even to objectives. our in financial first schedules, X are pleased quarters our strategic through results year some of with we with and related aligned pandemic and

individuals to range finally, builds increase and are within roles last vital of expected thank the Our capital like have be played guidance for in to additional I we to the in that expect would such and spend cases all on year and the fiber success-based of overcoming moving the while with bringing the lot continue expenditures. quarter managing with sincerely look many And progress all new culture pieces, excellence to to to to you our of forward these pandemic. embrace February. customers during a With our updating in adversity we markets efforts serve a life and our our in teams

I'll to Now, turn the over back call Jane.

Jane McCahon

And, Thanks, operator, are we questions. for Vicki. ready

Operator

question the first comes [Operator Instructions] Prentiss. Our of line from Ric Please go ahead.

Ric Prentiss

crazy morning, Thanks. Good these times. well everyone. Hope you be in continue to

Laurent Therivel

Good morning, Ric.

Ric Prentiss

the on the play. We've How over Hancock time. appreciate compare should of revenue financing or at a Slide a we Tower bringing the out you there, that of and in options? saw a tower cell questions, flow. would ExteNet, small interest minority business We XX% monetizing infrastructure selling? other XX detail how seen about John think talked XX-multiple financing tower options assets financial have infrastructure become the of up fiber buy stake Clearly, And American about a extra is and Hey. consider come something stake towers, you seeing growth buy InSite Couple valuable. cash to

Laurent Therivel

it's you. Ric, for question. to good LT. chat with It's Hey, Thanks the

our want May small in and that's portfolio, flexibility to last J.D. Mother it us. Power the gives because part, to in our towers team high-level, And network experience. not value because drive quarter. Just I, third parties network We at operational to of owning really Award see tremendous a go continue right, no we're that a a we improvements. to just won touch tower when Mike make beholden and we

ownership touching the really to direct approach customers. And XG in to why answer a forward towers those owning really see I'll alternatives, primary a gives to put we're those plan slide question with let there. of anything, to see Pete but be the wanted we If to coming value ability experience don't materials provide commitment towers that this we to changing and us our network of we about continue the up, have so, our reasons your that's owning that financing regularly. And the going on towers. driver stronger made to have the we more moving because and one was we

those I clear think in assets. been prior we to got about sweat those we're calls. going we've But own to well, towers, quite that if

And so, Austin board. you'll on notice I talked bringing in my introductory Summerford about comments

jobs running primary is and tower to operationalizing going Austin's those of One be assets.

from thinking moving hopefully on so, to provide but, not that. sure Pete, the I'm that that you to those some And around forward. financing doing on how how on to color those more that And about see projection bit we're to Ric, to and a want going transparency gives of we of provide can if tried focus you expect anymore you revenue And us and firm. the a sweating little we're we're the to structure about from continue kind assets. question, benefit assets

Peter Sereda

you is the the thought those somebody or well, towers that the reason I who that up bringing else could you mentioned, same is up Bringing the only to you you Ric, sell towers could the than lease monetize because in could thing. towers why could do. to thing expertise in can lease if the faster as guess, to you than you than and you faster wanted up would I a their has sell towers help partner, ability them lease so, you Yes, somebody would add you to better

We're on show a I think a what good we're growing we're at Slide that nice job. to pretty pretty the XX rate. doing is trying

we off the revenues the get trying term, near advantage can same do, the extra and the LT but base, start increase at to the we're off get and that a to we're at to, control sweat those in says, from towers, least the as what of that to getting the towers low also maintain but time. we towers Now, we're income is more trying the

call. has our on nothing really So the changed view since towers, last the in

Ric Prentiss

have at X think UScellular, sit revenues XG for service a question seat you as grow you've competitive been I wireless a here, do helps. over months, the growth early UScellular, you the it but know as, is and business it's so opportunity that looking maybe you're still ability As to period Okay, and LT, world EBITDA? do ask in at view a in multi-year you it you coming? the to this

Laurent Therivel

on if Yeah, in. first it's yes day you months the The step give question, a just I a and X more would little I'll said just convicted context my to great at around I have it. I'm a the company. of And was, thing bit that on attracted back, job of me look take assets opportunity the the of I a if that Ric.

network towers, for our an operate, the we in best have So it. award position spectrum tremendous own where won just we

best the customer engagement We have scores.

around top-line very We look those. haven't can translated into growth. that us growth, some are opportunities and opportunities, that at organic I there But organized I near-term the we've when think drive help

think run growth to that on example, bringing and Government of Kim in Kerr there's for I area. lot a our opportunity business, So, Enterprise

I prepaid, aggressively. think prepaid in life cycles our there's managing more customer growth

inspiring, opportunity there as on from think And and a analysts, and perspective see bottom people a more team with I've that and And think little discipline, soft I drive opportunity bit I so So on Since side a sounds the expense gotten it absolutely there. Street culture the call realized that Wall I there we here, discipline, a bunch but continued this of top-line as is the tremendous. growth well absolutely just a CapEx OpEx and the is is was is X. have both to day place on I line. more

you been plan can I've real growth Hopefully, that making conviction and I on the your answers has drive And only quarters. we here since fully so for heightened that in that question. my coming

Ric Prentiss

on Pete, How but return on amount the It does. one me. in you even was should to we had XQ, XQ can a modest you no XQ, the trigger and done to buybacks? pressure. buybacks guys stock You And allocate some final then think from pull stock stock and when how in capital though talk buybacks about to the in shareholders?

Peter Sereda

sort answer. it's of Ric, a X-part So,

our consolidation to that keep a The that strive first maintain return. into ownership consolidated benefits can have UScellular we where to tax we UScellular so X everybody XX% tax is,

programs on a shares. from we basis much buy dilution certain compensation to of need number so pretty And offset in to, an annual

to were of stock to to quarter COVID we in decided, unusual, - there that that, little at a a the was be buying couldn't some have maintain price to we but things the took been between we that's this prices. the the at example, necessary a low in the throughout TDS about plan and out in it's At during versus Vicki capital initiatives that in using we the back out-of-territory. just with a out-of-territory began, the authorization. that least rest saw balance And don't there times have that stock when stock. heavy really We do first have a investing at pretty that, constantly the the other found and really all the we point, crisis so the first that fiber to towards talking at you going couldn't of to it of decided frankly, say balance some we the out, investing buyback we're in over we when fall year pass were the was fiber balance when because for ridiculously quarter, these stock during looking really but let we the again, more We and year, to At wonderful on the it. tumble haven't were we It's it, we repurchase market market. using more we not have hadn't be

Ric Prentiss

Hope day. well. thanks. everyone continues a Okay, to Have stay good

Peter Sereda

Thanks, Ric.

Vicki Villacrez

Thanks, Ric.

Operator

of Phil the ahead. next line question Cusick. from Please go Our comes

Your is line open.

Philip Cusick

you. to Nice hear Thanks. guys. Hey, from

So evaluating starting think the Vicki, what you to compare competition the And variables you And and you what incremental then this how existing your opportunities offered And mentioned time? evaluation in you're opportunity customers interesting expansion was year that? I what thought about offer go and fourth are second, quarter? see it into you iPhone there? from that for out is we fiber. you with year-over-year the think maybe LTE, that over year do What might costs in talk about can last

Laurent Therivel

you. It's from Hey, good hear to Phil.

vis-à-vis mean, interesting good positioned requirements on an it's about So an around how offer focused iPhone been I with very offer perspective, from the no this our mean, we feel an we are yeah, customers. What year competitors. launch. I We is really

marketplace. not have some to that layering concern in unattractive distrust and a And been on of unnecessary have and caused we bunch customers so believe some the requirements

can't so marketplace. seen how provide far, aggressive with we're relatively And I so and perspective, specifics, - resonated has from the but far very offers. that In the general, offer pleased in a we've competitive

we're AT&T's obviously at think a new we're and the well end retention, I and the that that accretive. upgrade in highlight We subscriber I shear its day, managing, we think But to. offer we're wind paying one both attention feel our long-term would feel that offer's long-term about making positioned the particular that I also driving, obviously, we're is growth. like sure good net - of particularly profitable

Vicki, second and about you hopefully feel bit how how about want to we're I the think so, we do tackle that good And stand. context question? the we in you little of positioned gives a marketplace

Vicki Villacrez

Yeah, absolutely.

fiber forward. about how give think let which going we you performance, First, how out-of-territory feel current about I the of me will tell Phil, just this context our you

new are and in Idaho, we're our Wisconsin, starting Washington the market. in across pre-sale Spokane, pleased Washington and with the that market fiber sales We very marketing results to - in see rates our

at really rates feel XX% our to good for XX% broadband we're range between take builds seeing, penetration we and the required they thresholds these so they're largely that launch. about And meeting

of Boise, the end a commenced next way moving We're we're most Wisconsin with can occurring our year, and complete don't build is - fiber to portions Southern complete we're these also that than we've Meridian our we Idaho, And construction like we're strong expectations. our expecting year. our end believe challenges installations quarterly then at seeing. - under of While builds nearly well slower reporting and this by market Central meeting construction we pre-sale in is of in Wisconsin we And we'd in earlier rate overcome fiber we've been results. with that's where

that markets criteria at the deployment customers attractive and support. superior with to And strategy, all this backdrop that give had household expectations, this household per the So broadband these makes and good on is new these formation that expand to continues Oftentimes environment, strong expand attractive of other a markets the therefore, competitive buy cost demand evaluating a cost We it existing target into where our fiber have is us or overbuild in footprint look areas build build this to are sense meet really pass. our look so fiber to we confidence services. pent-up not for have we in for demographics choices strategy.

really criteria. our that's So

Philip Cusick

this in flow Okay. it example, - do offer? no and if can than think I did more for year substantially requirements cash LT, would that if last offer second, cost EBITDA back go quarter your a for you continued, you this

Laurent Therivel

No, Phil.

last more, significantly at us I we be end. direct it's year, where compare to were cost I my it think, to do when to I going from not believe

Philip Cusick

That's helpful. you. Thank

Operator

comes Please line go ahead. question Flannery. of from next the Our Simon

is line open. Your

Simon Flannery

morning. millimeter how getting the Thanks. good interactions could give activations, Great. XG terms bit we've Thanks et just do your customers, with digital little the model little in T-Mobile rethinking you maybe you us plans a on around of XG, you OpEx maybe about and second cetera? CapEx fixed think, And performance. their color very results more heard And think in in wireless Good the about How just LT, of obviously I much. a there Verizon from talked opportunities, bit about are a some both plans you that and and your post-COVID wave? then question discipline.

Laurent Therivel

Hey, Simon, questions. great

let XG, bit little So a of color there. provide me

of down So couple a as into I look break us segments. it kind at opportunity of the for

The first is expense around improvements. cost and

of the XX% increase in manage you increased going key having around network, expense, that last by for X% was on and be over do to modernized is with XG and a a driver look a only network us. that that to XX% increased previous it and quarter over at our quarter we've just on if So usage been usage you our able network,

can is, thing us first profile. better for that our our the capital at we're looking so help And it XG expense how and manage

that - year. in end of we will end the it of markets share the of obviously have piece, the presence our have mentioned in XG carried by market Second over all the market. is of I We'll around traffic XX% our QX. by on

obvious remain Thus And to continue aggressively relatively so use attention to rolling we we're out is highly about cases. drive ensure in is a will rest pay be and that, talk monitor the that piece most the and really does we broadband of the far, the and industry, one lot obviously around what order adoption emerging to And cases final use the that cases continue the I'll but we the usage. to then, piece fixed emerging as XG use competitive. of wireless so

about just internet for talk Let a me bit. high-speed

services to going pretty and So that going we ran highly I at able X enthusiastic Ericsson. Qualcomm the that We're XXX mentioned about being those second for the to along speaks with to per be results, able kilometers megabits that kinds trial very we're to to relative to of to get We're provide quarter, The high-speed we're that be for to cable, the going in of be and market something internet that's is so have and in market rural testing first testing. America. the elasticity demand going that. question trials interesting obviously we're

where you enabled then in and high-speed is that we home internet you network because good LTE. really just mean. to internet, that I your needs internet wave, testing capacity to We'll specific One for really with in you Let be excess an purpose-build for the and some I results monetizing need and capacity, demand obvious that that's seen we've case already is, mobile the capacity what millimeter build of to me high-quality there high-speed we're over question quarter serve customers, And the then doing your high-speed millimeter use wave is think about not so to enables try with for the you principle of that interesting excess them but just apply third our question with broadband. be a architecture have that, marketplace homes test. enough

is about lean this nimble love One enough things and I we company the we're we're can and enough that that of pivot we're quickly. small enough

that market expect geographies those the see good more into it. quarter we running fairly be tests in and that be us we'll to behind continue customer aggressive so roll to can and you first uptake, out assuming get And

We with have test offer to relative answers play to customers cable. and that that how Hopefully, that your elasticity see Simon. question,

Simon Flannery

wireless other that beyond the Absolutely. see in think of you we fixed use Are cases couple could there years? next

Laurent Therivel

and question think of that at time needs highlighted at companies Next - the I be particular, looking what and address fair has those and use health connected many and understand to we Simon, But, robust COVID of spend solutions. cases we versus connected right, particular, there. company the question agriculture. connected we're the XG that cases I how think to mean, cases served drone and will actually of couple there, many versus certainly. I continue improvements. can of those LTE, use in made capacity an - going about look We're education more to be of is it require speed with fundamental a by use certainly coverage think how CTIA is, years, bit mean, in something working are I for for this I I with that the our more in talked yes, has us I connected need

has history internet. use matter inevitably will up I really then all to creative that this I ways fill case XG I silver mean, capacity seen confidence the the solutions have place. sitting partners industry the and capacity And deliver in world find our long customers. the our that haven't our for a to that so of and partners bullet beyond in down putting And emerge. with high-speed

that have So then - think education coupled space that going very that the the to I of linings is connected XG would eager to And robust, health, solutions. going in of is have that one technology the expect the been you that, times and be silver on have I of more in place. connected because that going coupling now the are a might little uptake those you in that solutions actually longer accelerated in normal is interested drive of development pandemic bit are customers the pandemic

are So of to. couple a paying particular those we're attention spaces

Simon Flannery

on then And digital transformation? Great.

Laurent Therivel

Yeah, thank you.

on I - you the hit slower mean, traffic. nail the I head. you So talked about

Our which depending you look XX%, at. XX% traffic is on quarter down year-over-year

a what you to holiday it's is perspective around We have the so got digital expect season is focusing terms don't What I customer our really year-over-year, feel pretty in we're from like percentage, I really to on a be look efforts lifecycle and that to going digital solution. but retail management. robust down that, of know confident going

solution, harkened think of death our and lots the and it's the switching run big solution, it deal industry years with - challenging. voices the a solution, for the mobile the retail in that phone years, now to very driving this the call long and I in think I to behavior let's customers is physical have that still

And in the expect retail will role customer so, and I terms in delighting is continue critical be customer, going switching. to terms that ARPU experience stores a meaningful expanding to switched But of maintaining play after customer, over you've of digital to that time.

in focus of so, digital be low period to our investments over it. that continue that and us see digital And churn investments to we time. It's expand the efforts see to sure see increased and you'll ARPU lifecycle make going you'll from behind management

Simon Flannery

Great. Thanks a lot.

Laurent Therivel

Simon. Thanks,

Jane McCahon

question. more one for time have we Operator,

Operator

Sergey. Our ahead. of from go final question line Please comes the

open. is line Your

Sergey Dluzhevskiy

the Good for morning, taking questions, for guys. you LT. maybe X Thank

for of in that that you Mexico be a mentioned robust opportunities in you network-sharing the you And with call around is and exploring Telefónica that previous relationship I will that think partnerships the AT&T market. in on one examples infrastructure. gave had products So more interested

us what UScellular way So where one for align partnership examples and UScellular in like? is to And the front could better a could the look the on national could other of operators potentially you maybe any there point future? as be it itself focusing to

Laurent Therivel

great I XXXX. out our for X the for you're next Sergey, Slide Yeah, if And question. correct. priorities priorities year, Hey, think lays about

We're XXXX to a of better open is to on different You partnerships. our right? improve to variety and business that a priority. shouldn't is thing going return an a Growth is be would expect increased focus on XXXX, to the to capital. dramatic change profitability add a in our priority, for grow ways list one But I

so, or And it's whether infrastructure it's revenue partnerships whether partnerships.

the And that small, of That's launched things we quarter. at called kind actually company launched I about a so, point Wyzant. this that looking one It's but gives we you as partnership company. a we're let idea it that a think at an me with

we the one divide, one kids, pandemic we our with the the worried we of about Commissioner of realized the things listened has customers, so, things digital sat that down homework And as to during them, worried they was customers and our about talked educating divide. about that highlighted were Rosenworcel their this

something with wanted it. We I resonates something that me. that's to do about think

much company, marketplace challenged more is tutoring. they're we we companies really a organization the execution rapidly. around we do this Wyzant, from of And job great good so, were to went out And the to in that to that looked and one a with partner. for move concept And the doing found really things

idea marketplace this deal the tutoring to matter from weeks. education a went we so, out of, important and hey, for our getting in a And appears in of customers be to

it's And to We've currently we're UScellular, so, hour a with adds offer of partnering And fantastic and marketplace our out this tutoring benefit where get a Wyzant, free the good new customers. with really it's for robust in had response. for really for Wyzant. our for At us. win-win customers, a partners We're giving distribution our partner, the it's our visibility. great for and robust really them same and time,

our not grow partnerships of specific, you that top-line, to looking be we we're it the looking have all like position smaller think companies also the business our are to more yes, the by lot helps those unique granular going referenced. that I we marketplace, broader do help and well. but subscribers to at anything and so, something And at And in like growing certainly a us we ones Wyzant bring along ourselves. way I'm finding And more talk delight partnerships don't them just to as a about realized compelling delight customers. retaining us

much types those cadence in of more your see that a answers Hopefully to expect question, forward. of could Sergey. partnerships more you so, regular going And

Sergey Dluzhevskiy

follow-up It on does. have tower a Great. portfolio. I And the

owns in on UScellular The valuation portfolios country. X multiples top where in is obviously, UScellular probably assets is So trading differential quite tower tower significant. the the and

control how shareholders? for I maximized? it to do And made and to owning to would that so assets better of you continue obviously guys the value; tower their do see it while monetize value its for its a maximize clear While partially value the you your mean, from UScellular possibly, you strategic, you portfolio, wonder, assets that retaining those currency like tower opportunity is and an create ultimately the maybe maybe highlight I

Laurent Therivel

question, It's a fair Sergey.

revenue, on. think given in I we've that I it's portfolio, it At better we've expand of say set customers, we us opportunities. the focused we're grow our And no, the run better tower end we because any of continue better past. same that's day, partnerships, the one our what margins. the set serve that to past. give it tackled right, better sorry, evaluate business, helps like And in of broad I'll answer the any you broad I'm never so

multiple with is is to portfolio by driven along going on a good having other on and point, so, And fact that And those where companies other up that tower belief are My well. and focused that's are the that's bring focused as the around we which that portfolio deferential. be retaining sweating EBITDA assets. towers you

those better be board Austin going reporting to guys out We're on along we those monetizing is why assets. sure be to that making that's brought We'll you we're effectively. So to sweat realm. that

back us we're like that you. of the in to at And presentations. really gives can we'll of time. for just the so, we the eager it day, that not to sake expect and to EBITDA near-term the turn flexibility multiple future operational it But end you see slide sacrifice Jane, the that

think I our question. last that's

Jane McCahon

Thank you investor forward. us you, to talking meetings We going to morning. joining at great Great. a forward Have everybody, various this weekend. for look

Operator

Thank call. conference today's your you participation. concludes for This

now disconnect. may You

United States Cellular Corporat (UZD) 8 Nov 202020 Q3 Earnings call transcript