Telephone and Data Systems, Inc. Q1 FY2027 earnings call

TDS President and CEO Walter Carlson mentioned TDS submitted a proposal to acquire the remaining shares of Array. TDS Telecom is focused on executing its fiber growth plan, with progress in delivering fiber addresses, growing fiber sales, and operational transformation. Array is laser focused on fully optimizing its tower operations and monetizing its spectrum, with progress in cash site rental revenue and spectrum transactions.

TDS Telecom: In the first quarter, delivered 40,000 marketable fiber service addresses, the highest first - quarter total in company history. Residential fiber net adds were approximately 11,000, up 32% year over year. Fiber revenue was up 13% versus prior year, while cable revenues were down roughly 10% versus the first quarter of 2025. Array: Cash site rental revenue in Q1 increased 55% year - over - year from all customers, and when normalized for DISH impact, this increase was 64%. When layering in the T - Mobile entrance site revenue, the increase was 86% year - over - year, or 98% when normalized for DISH.

TDS: Projecting total telecom revenues of 1.015 billion to 1.055 billion, adjusted EBITDA guidance between 310 million and 350 million, capital expenditures for the year projected to be between 550 million and 600 million to support delivering between 200,000 and 250,000 new fiber service addresses. Array: Guidance across all metrics, total operating revenue, adjusted EBITDA and OIDDA, and capital expenditures is unchanged.

DISH has generally failed to make required payments and is in breach of obligations, which has impacted Array's revenue recognition. Spectrum transactions are subject to regulatory approval and other customary conditions which could delay or prevent the closing of such transactions.

Q: On the fiber side, have TDS looked at putting fiber into a REIT structure?

A: Vicki said they've looked at a number of options but they're not optimal currently and are focused on funding fiber with cash.

Q: Update on TDS's ownership of Array?

A: TDS owns approximately 81.9% of Array.

Q: Metrics on fiber business?

A: TDS added disclosures for residential revenues by technology and has metrics in trending schedules on investor relations website.

Q: Ken, on sales folks and customer experience?

A: Ken talked about hiring sales and customer experience folks, with good progress in pre - sales velocity, door - to - door channel and dot - com business.

Q: On Granite acquisition?

A: It's consistent with TDS's capital allocation priorities, a tuck - in, accretive, adjacent to current markets in New Hampshire.

Q: On TDS's build plan for service addresses?

A: Still targeting 200 - 250,000 service addresses and confident in delivery based on crew counts and funnel.

Q: On Array's monetization of C - band?

A: Array believes C - band spectrum is excellent but not in a hurry to sell at unfair value and has no updates on its sale currently.

Q: On Array's margins?

A: Array sees opportunities to improve margins through land ownership and transitioning from a maintenance posture, focusing on tower cash flow side.