ALEXANDRIA, Minn.-Rural Cellular Corp. reported 8,144 net subscriber additions during the second quarter of this year compared with 10,309 new customers last year, ending the first half of this year with 741,507 total customers compared with 739,015 for the first half of 2003. Postpaid customer churn increased year over year from 1.6 percent during the second quarter of 2003 to 1.8 percent this year.
Average revenue per user increased from $44 during the second quarter of 2003 to $47 this year, while the acquisition cost per customer jumped from $426 last year to $454 this year.
Total revenues dropped slightly from $127.1 million last year to $126.6 million this year due to a drop in roaming revenues from $31.8 million during the second quarter of 2003 to $26.3 million this year. Rural Cellular noted the drop in roaming revenues reflected the first quarter transfer of its Oregon-4 RSA to AT&T Wireless Services Inc. and a decrease in outcollect yield from 21 cents per minute during the second quarter of 2003 to 16 cents per minute this year.
Net income applicable to shareholders increased from $382,000 last year, or 3 cents per share, to $3.4 million this year, or 27 cents per diluted share.
Rural Cellular’s stock was trading down more than 7 percent early Tuesday at $7.92 per share.
