TDS 4Q Profit Up 24%, US Cellular Net Edges Up But Co Loses Subscribers
Last Update: 2/24/2011 8:37:20 AM
DOW JONES NEWSWIRES
Telephone & Data Systems Inc.'s (TDS) fourth-quarter profit rose 24% as its U.S.
Cellular Corp.'s (USM) profit edged higher even as the carrier again lost
subscribers.
U.S. Cellular has been losing postpaid subscribers amid increasing competition in
a wireless industry nearly saturated with cellphones. Big carriers have continued
to add subscribers on the strength of marquee handsets.
TDS reported a profit of $14.5 million, or 14 cents a share, up from $11.7
million, or 11 cents a share, a year earlier. Revenue edged up 0.3% to $1.27
billion.
Analysts polled by Thomson Reuters most recently expected earnings of 22 cents on
$1.28 billion in revenue.
TDS's Madison, Wis.-based telecommunications business, TDS Telecom, saw revenue
rise 0.5% and profit fall 3.8%. Companywide, physical access lines fell 5.3% from
a year earlier and 1.8% from the prior quarter.
Meanwhile, U.S. Cellular posted a profit of $6.8 million, up from $6.6 million a
year earlier. Per-share earnings were flat at 8 cents. Revenue edged up 0.3% to
$1.06 billion.
Analysts most recently predicted earnings of 22 cents on $1.07 billion in
revenue.
The carrier, which operates in 26 states, said it lost a net 31,000 customers
during the period, compared with prior-year gains of 10,000. It ended 2010 with
about 6.1 million customers, 1.1% lower than a year earlier.
Retail average revenue per user rose to $47.41 from $47.07 and retail postpaid
churn--or turnover rate--improved to 1.5% from 1.6%.
Shares of TDS and U.S. Cellular closed Wednesday at $32.65 and $46.71,
respectively, and both were inactive premarket.
-By Matt Jarzemsky and Nathan Becker, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com
(END) Dow Jones Newswires
February 24, 2011 08:37 ET (13:37 GMT)
