Array Digital Infrastructure, Inc. 5.500% Senior Notes due 2070 Q1 FY2025 earnings call

• Progress on 2025 priorities, including extending near-term bank maturities, separation/integration work for T-Mobile transaction, and focusing on future organization. UScellular expects mid-2025 closing of T-Mobile transaction and potential special dividend to shareholders. TDS Telecom's fiber program expanded over 30% in three years, with plans to grow further. Cost optimization at UScellular with year-over-year reductions in cash costs as operating expenses were flat and CapEx declined.

UScellular:

• First quarter results impacted by prior year divestitures. Postpaid handset results improved year-over-year. Third-party tower revenue increased 6% in the quarter due to new colocations and escalators on renewed leases. Free cash flow was $79 million in Q1 2025, an $18 million increase from Q1 2024.

TDS Telecom:

• Delivered 14,000 new fiber service addresses in the quarter, targeting 150,000 fiber addresses for the year. Residential broadband net additions were 2,800, with 8,300 from fiber markets. Fiber churn was 0.9%, lower than overall broadband churn. Total operating revenues down 3% in the quarter, impacted by divestitures and declines in commercial/wholesale revenue and residential video/voice connections.

• UScellular not providing 2025 financial guidance due to expected T-Mobile transaction close. - TDS Telecom's 2025 guidance unchanged: targeting 150,000 new fiber addresses, 80% of addresses served by fiber, and 95% of footprint at 1 gig or higher speeds. More than 80% of full-year capital expenditures dedicated to fiber.

• Uncertainty in timing of designated entity spectrum approvals by the SEC. - Dependence on regulatory approvals for T-Mobile transaction. - Impact of carrier competition on UScellular's subscriber and revenue growth.

Q: Ric Prentiss asks about the timeline for designated entity spectrum approval and debt exchange offer impact.

A: Doug Chambers responds that timing of designated entity close is uncertain, dependent on SEC approval, and mentions good news on King Street qui tam matter but timing is uncertain. On debt exchange offer, it's difficult to predict conversion but attractive debt may lead to some conversion.

Q: Sebastiano Pettiat asks about TDS preferred stock redemption and Colorado sales impact.

A: Vicki Villacrez states TDS currently doesn't plan to redeem Series UU and Series BB preferred stock, seeing them as foundational capital. Kris Bothfeld says Colorado ILEC sales were small with $18 million proceeds, and transformation cost savings program is ongoing with $100 million target by 2028.