CHICAGO-U.S. Cellular Corp. posted disappointing first-quarter profits, despite increased operating revenues and customer growth.
For the quarter, U.S. Cellular reported net income of $30.4 million, a 28-percent decrease from the $42.2 million reported for first-quarter 2000. Earnings per share followed suit, dropping from a return of 40 cents last year to a return of 39 cents per share this year. Analysts expected earnings per share of about 49 cents.
Operating revenue increased more than 11 percent for the quarter from $394.1 million in 2000, to $439.7 million this year. The wireless carrier added 114,000 customers, a 9-percent increase from the 105,000 customers added during the first quarter of 2000. Customer churn also fell slightly from 1.8 percent to 1.7 percent during the same time frame.
“Our first-quarter results continue to reflect our investment in and heightened focus on the customer,” said John Rooney, president and chief executive officer of U.S. Cellular. “While operating cash flow only grew by 2 percent, a significant portion of operating expenses were incurred to add and retain customers, representing an investment in future growth.”
