CHICAGO-U.S. Cellular Corp. released full first-quarter results confirming its previously reported 196,000 net customer additions not including 76,000 subscribers transferred to AT&T Wireless Services Inc. as part of a market and spectrum swap that closed during the quarter and postpaid churn of 1.3 percent. The carrier also posted a 7-percent year-over-year increase in average revenue per user from $37.68 during the first quarter of 2003 to $40.26 this year, which was attributed to the inclusion of universal service fund revenues and an increase in cost per gross addition from $358 last year to $371 this year.
Total revenues increased nearly 9 percent from a restated $603.8 million during the first quarter of 2003 to $657.7 million this year, despite a 2.3-percent drop in equipment sales. Net income also increased from a loss of $27.8 million last year, a loss of 32 cents per share, to a return of $9.2 million this year, a return of 11 cents per share.
“All in all, a very good quarter,” said John Rooney, president and chief executive officer of U.S. Cellular. “Service revenues increased 10 percent, despite the disposition of several markets, and profitability improved year over year as well.”
