Telephone and Data Systems Inc. (NYSE: TDS) shares plummeted 5.85% in intraday trading on Friday, following the company's disappointing fourth-quarter 2024 financial results and the underperformance of its subsidiary, UScellular Corp.

The telecommunications services provider reported an adjusted loss of $0.09 per share for the fourth quarter, wider than analysts' expectations of a $0.38 loss per share. The company's operating revenue also fell short of estimates, coming in at $1.24 billion, compared to the consensus estimate of $1.25 billion.

TDS's disappointing results were compounded by the weak performance of its wireless subsidiary, UScellular Corp. (NYSE: USM). UScellular reported a net loss of $5 million for the fourth quarter, compared to a profit of $14 million in the same period last year. The company's operating revenue declined by 3% year-over-year, primarily due to factors such as the shutdown of its CDMA network and higher costs.

Despite the lackluster financial performance, TDS announced that it would maintain its quarterly dividend on common shares at $0.04 per share for the first quarter of 2025. The dividend is payable on March 31, 2025, to shareholders of record as of March 17, 2025.

Analysts believe that the company's ongoing efforts to streamline operations and focus on high-growth areas like 5G deployment could help to improve its financial performance in the coming quarters. However, the challenges faced by UScellular and the intense competition in the telecommunications industry may continue to weigh on TDS's overall performance in the near term.