TDS Telecom reports strong start to the year
MADISON, Wisconsin - TDS Telecommunications LLC (TDS®) is pleased with its first quarter results and is experiencing strong growth in its fiber program. As planned, the Madison, Wisconsin-based company added 22,000 marketable fiber service addresses to its footprint. TDS has recently announced new markets in Montana and Wisconsin. The company now serves 33% of its 1.4 million addresses with fiber, which includes cable markets.
“Our primary strategic objective is to provide growth and improve returns by investing in our flagship product – high-speed broadband,” said Senior Vice President of Finance and Chief Financial Officer Michelle Brukwicki. “We are directing our investments to expand our fiber footprint in new and existing markets and to enhance our product offerings, and these investments are driving revenue growth.”
In line with growth objectives, TDS grew total service addresses 7% year-over-year. In the first quarter, the company increased the availability of 1Gig speeds to 62% of total service addresses, up from 55% one year ago. Total broadband residential connections grew by 6% in the quarter. The company is also seeing continued demand for greater broadband speeds, with 67% of residential customers taking 100 Mbps or greater, up from 62% a year ago.
“Our 1Gig product, along with 2Gig in certain markets, are important tools that will allow us to defend and win new customers,” said Brukwicki. “Our focus on fast, reliable service has generated a 10% increase in total residential broadband revenue.” Strong broadband growth is offsetting legacy revenue declines. Total operating revenues increased 1% year over year, largely driven by growth in residential revenues, which increased 4% across all markets.
Previously announced last quarter, in the next five years, TDS looks to reach approximately 2.2 million service addresses with about 60% being fiber and 80% capable of 1Gig or faster speeds.
More opportunities may be ahead for TDS Telecom to help bridge the digital divide in the most rural areas through an extension of the current federal A-CAM program, along with broadband funding from the Infrastructure Investment and Jobs Act.
“I want to thank all our team members for their continued dedication to our ambitious growth agenda,” said Brukwicki. “We had a successful start to the year.”