TDS Telecom hits expansion market milestone, reports strong financial results

The Madison, Wisconsin-based company surpasses 100,000 residential broadband connections in its expansion markets

Madison, Wisconsin, May 03, 2024 (GLOBE NEWSWIRE) -- TDS Telecommunications LLC (TDS) shared several positive developments in its first quarter earnings report. The Madison, Wisconsin-based telecommunications company delivered its strongest quarter of revenues since commencing its fiber expansion program with a 5% increase in total operating revenues, along with an increase in profitability in the quarter. The company also reached a major milestone: exceeding 100,000 residential broadband connections in its expansion markets. TDS Telecom added 28,000 marketable fiber service addresses this quarter and is on track to reaching its goal of 125,000 for the year. Total service addresses grew 12% year over year.

“Our fiber strategy is working,” said Senior Vice President of Finance and CFO Michelle Brukwicki. “For the past several years, we’ve made significant investments in our fiber program and these broadband investments are now driving meaningful results.”

TDS Telecom is making progress on its long-term operational goals as well. The company is targeting 1.2 million marketable fiber service addresses; it ended the quarter with 827,000. It is also targeting 60% of total service addresses to be served with fiber; it ended the quarter with 49%. And the company plans to offer speeds of 1 Gig or higher to at least 80% of its footprint; it finished the quarter with 73% at Gig speeds.

“We are progressing in growing fiber in not only our expansion markets, but we’re also fibering up our incumbent markets,” said Brukwicki. “At the end of the quarter, 44% of our incumbent markets were served with fiber. Even more fiber will be built into these markets in the next several years due to TDS’ participation in the federal Enhanced A-CAM program.”

The company’s growing fiber footprint is increasing the availability of faster internet speeds. Demand for higher broadband speeds is increasing with 78% of customers taking 100 Mbps or greater, up from 72% a year ago. Customer take rates on our highest speeds are growing with 17% of TDS’ customer base on 1 Gig or higher.

The company delivered 6% growth in residential broadband connections year-over-year with 6,400 residential broadband net adds in the quarter. As a result of increases in broadband connections and revenue per user, TDS saw a 10% increase in total residential revenue.