ALEXANDRIA, Minn.-Rural Cellular Corp. reported $112.7 million in total revenues for the first quarter of 2003 compared with the $103.8 million the carrier reported for the first quarter of 2002. The increase was split evenly between the carrier’s service, roaming and equipment sales revenues.
Net losses applicable to common shareholders dropped from $432.3 million during the first quarter of 2002, a loss of $26.27 per share, to $10.5 million this year, a loss of 87 cents per share. A large portion of Rural Cellular’s net loss during the first quarter of 2002 was attributed to a one-time cumulative effect adjustment.
Rural Cellular said it added 6,333 net customers during the first quarter of 2003, compared with 16,212 net customer additions during the first quarter of 2002. A year-over-year decline in the carrier’s wholesale customer additions accounted for a majority of the net additions shortfall.
Rural Cellular’s management also noted that the carrier is still evaluating the technology migration options for its TDMA network, and it is likely the carrier will overlay both CDMA and GSM onto its network depending on the market. The migration is expected to begin during the second half of this year and be substantially completed by the end of 2005.
