U.S. Cellular posts robust revenues, slowing customer growth

U.S. Cellular Corp. reported $971.6 million in total revenues for the second quarter, a nearly 15% increase compared with the $846.1 million the carrier posted during the same quarter last year. Net income nearly tripled from $50 million last year, a return of 57 cents per share, to $147.6 million this year, a return of $1.67 per share.
U.S. Cellular’s stock remained largely unchanged by the news, dropping less than 1% to $92.79.
The No. 6 carrier added 37,000 subscribers during the quarter, increasing its subscriber base to 6.01 million customers, marking a 5.4% increase year over year. The results were down from the 49,000 customers the carrier added during the second quarter of 2006.
Average revenue per user increased 8.3% to $50.42 and data revenues jumped 77.2% to $85.4 million from the year-ago period, the company reported. Data revenues now account for 9.4% of all service revenues.
The total post-pay churn rate including reseller customers was 1.9%; excluding resellers, the company said postpaid churn was 1.4%.
“U.S. Cellular had a very strong second quarter financially,” President and CEO John Rooney said in a statement. “Going forward, we are continuing to concentrate our efforts on growing our existing markets, improving profitability and increasing cash flow. At this time we have no plans to open any significant new markets this year or next.”