US Cellular 3rd Quarter Revenues Pass the $1 Billion Mark

US Cellular has reported 3rd quarter revenues of $1,013.9 million for the third quarter of 2008, a 6.2 percent increase from $954.5 million in the comparable period one year ago. The company recorded operating income of $120 million, up from $100.9 million in the third quarter of 2007. Net income was $89.9 million, compared to $63.6 million in the comparable period one year ago.

"We had solid performance this quarter, with increased revenues and a slight expansion in our margins," said John E. Rooney, U.S. Cellular president and CEO. "We had a four percent increase in ARPU, which has risen year over year for the past 12 quarters, and that helped to drive service revenues. Customers continue to choose our smart phones and touchscreen phones, and that's helping to drive the increase in ARPU as well.

"We added 12,000 retail postpay customers in the quarter, fewer than we expected," continued Rooney, "which might be partly a result of the overall economic downturn. Foot traffic in our stores has slowed a bit, and we also had some losses in the prepaid customer segment, resulting in an overall net loss of customers. However, retail postpay customers are 95 percent of our retail customer base, and the fact that retail postpay churn was flat in the third quarter compared to this period last year tells us that those customers are staying put.

"The wireless industry remains very competitive, and we're keeping our high-value, postpay customers satisfied by maintaining the high level of customer service they expect and deserve from their wireless company. U.S. Cellular has a competitive lineup of handsets and services, a strong balance sheet, and-most importantly-associates who are dedicated to ensuring an exceptional experience for our customers."

Posted to the site on 5th November 2008