CHICAGO-Regional wireless operator U.S. Cellular Corp. postponed reporting its third-quarter financials until Nov. 28 after announcing plans to restate some of its previously released financial statements.
The carrier said it plans to restate full-year results for 2000 through 2004 and quarterly results for each quarter of 2003 and 2004, as well as the first two quarters of this year. The restatements stem from the carrier’s review of its accounting treatment for Universal Service Fund expenses; leases; contract termination fees; income tax accounting; and other adjustments.
U.S. Cellular released a handful of preliminary third-quarter results including 77,000 net customer additions, which were well below the 111,000 subscribers the carrier added last year. The carrier’s postpaid customer churn was 1.5 percent, down slightly from the 1.6-percent churn it posted during the third quarter of 2004. Analysts were expecting the carrier to add between 100,000 and 110,000 customers during the quarter with postpaid churn of between 1.6 and 1.7 percent.
U.S. Cellular also lowered its full-year guidance from between 475,000 and 525,000 net customer additions to between 400,000 ad 425,000 new subscribers. However, it maintained its guidance for around $2.8 billion in service revenues for the year.
U.S. Cellular’s stock was trading down more than 3 percent early Thursday at $50.34 per share.
