CHICAGO-U.S. Cellular Corp. reported mixed financial results for the third quarter 2002, with increased service revenues and strong customer additions offset by reduced operating cash flow and earnings per share.
The carrier recorded service revenues of $561.2 million, up 17 percent from the year ago period. Operating cash flow meanwhile decreased 1 percent to $167.6 million. Basic earnings per share, as determined under GAAP, plunged to 14 cents compared with the year-ago period’s 61 cents. The company also said it incurred a $34.2 million loss.
U.S. Cellular reported an increase of 17 percent in customer units to total more than 3.9 million. It also recorded 91,000 customer additions in its existing markets, excluding Chicago, up from 85,000 customer adds during the same period last year. In addition, the carrier added 305,000 customers from its August acquisition of the Chicago Major Trading Area (MTA) PCS license from PrimeCo Wireless Communications L.L.C.
Rogers AT&T Wireless also announced results for the third quarter, including $520 million in revenues, up 14.3 percent from the year-ago period, and operating profit up 30.5 percent from last year to $158 million. The company also cut its losses, recording a $14 million, or 10 cents per share, loss, much improved from last year’s $49 million, or 35 cents per share, loss. Rogers cut capital expenditures by 16 percent to $126 million.
As for subscribers, the carrier added 71,400 postpaid voice subscribers, which accounted for 80.5 percent of total wireless voice additions. Rogers also saw a 70-percent decline in its prepaid offering, which it continues to de-emphasize, resulting in 17,300 net prepaid additions. In addition, data and two-way messaging revenues jumped 97.2 percent from last year, led by a 77.4-percent increase in total data and two-way messaging subscribers.
Following the carriers’ announcements, U.S. Cellular was trading down 2.62 percent, or 77 cents, at $28.58 per share and Rogers was up 7.07 percent, or 36 cents, to trade at $5.45 per share.
