U.S. Cellular 3rd-Quarter Profits Down 60%

­U.S. Cellular has reported a 3% drop in its 3rd-quarter revenues to US$984.9 million, due primarily to a $24.7 million reduction in inbound roaming revenues related to the acquisition of Alltel by Verizon Wireless.

Net profits dropped by 60% to $35.6 million from $89.9 million a year ago. A large part of the drop is due to a one-off gain in 2008 of $16.4 million from the disposition of investments related to Rural Cellular Corporation.

"During the third quarter, both gross and net retail additions improved significantly over the second quarter," said John E. Rooney, U.S. Cellular president and CEO. "We reached out with targeted postpay promotions and more value-driven prepaid plans and customers responded well, particularly in our larger markets. In fact, retail net additions improved sequentially each month in the quarter.

"Data revenues grew 34 percent, helping to offset the expected decline in inbound roaming revenue," continued Rooney. "To promote continued growth in data revenues, we have accelerated the expansion of our 3G network, reaching approximately 75 percent of our customers at the end of the third quarter."

"As expected, operating income declined this quarter, reflecting lower revenues, as well as increased spending in support of multi-year initiatives," added Rooney. "These initiatives will be a strong focus for U.S. Cellular in 2010 and beyond, enabling us to increase efficiency, while strengthening our relationships with customers and developing targeted marketing and sales programs for all channels."

Posted to the site on 5th November 2009