Telephone and Data Systems (NYSE:TDS) reported a 6% decline in total operating revenue for Q2 2023, leading to a reduced full-year revenue guidance of $1 billion to $1.025 billion. This downturn is attributed to legacy revenue pressures, particularly in copper and cable services, despite a 47% increase in residential fiber net additions to approximately 15,100. TDS Telecom now expects to deliver between 250,000 and 300,000 new fiber service addresses this year and has raised its capital expenditure outlook to $625 million to $675 million.
During Q2, TDS Telecom delivered around 66,000 fiber service addresses, enhancing its total to nearly 1.2 million, with 80% supporting gigabit speeds. The company utilized federal funding to expand fiber access to over 300,000 addresses in 22 states. Meanwhile, Array Digital Infrastructure marked a 55% increase in cash site rental revenue and completed significant spectrum transactions, including a $1 billion deal with Verizon and a $168 million sale to T-Mobile.
As TDS navigates challenges within its legacy telecom business, the company is gearing up for growth in fiber services while continuing to optimize operations and explore acquisition opportunities.
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