Tear Sheet: CCI Buyer Inc.

During the first nine months of 2024, the company grew its total revenue by 5% on an increase in its average revenue per user (ARPU), stable churn rate, and about 50,000 net subscriber additions. Consumer Cellular also improved its S&P Global Ratings-adjusted EBITDA by 4% over this period due to the favorable pricing on its wholesale agreement with AT&T Inc., which lowered its network access costs despite its higher headcount, technology, and regulatory expenses. We believe the expanded buildout of the company's stores will partially mitigate its distribution pressures and weaker device sales at select third-party distributors in 2025. Our base-case forecast assumes Consumer Cellular raises its service revenue by 5%-6% during the year because of higher ARPU, from customers

...February 11, 2025 S&P Global Ratings expects CCI Buyer Inc. (d/b/a Consumer Cellular) will increase its revenue by 3%-5% over the next year as its subscribers migrate to higher-tier data plans. During the first nine months of 2024, the company grew its total revenue by 5% on an increase in its average revenue per user (ARPU), stable churn rate, and about 50,000 net subscriber additions. Consumer Cellular also improved its S&P Global Ratings-adjusted EBITDA by 4% over this period due to the favorable pricing on its wholesale agreement with AT&T Inc., which lowered its network access costs despite its higher headcount, technology, and regulatory expenses. We believe the expanded buildout of the company's stores will partially mitigate its distribution pressures and weaker device sales at select third-party distributors in 2025. Our base-case forecast assumes Consumer Cellular raises its service revenue by 5%-6% during the year because of higher ARPU, from customers migrating to higher-tier...

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