Rural Cellular up on first quarter

Investors reacted positively to news that Rural Cellular Corp. expects to report increases in service and roaming revenues during the first quarter.
The company expects to report service revenue of about $98 million, up slightly from revenues of $96 million last year. Roaming revenue increased $5 million to about $36 million, said the company.
RCC’s stock was trading up more than 14 percent following the announcement of its preliminary results, trading at about $16.10 per share.
RCC said postpaid gross additions increased 16 percent to 41,531 during the quarter, an increase from 35,521 added during the same quarter last year. Postpaid churn was 1.9 percent during the quarter, an improvement from 2.6 percent last year. As a result of the lowered churn and higher gross additions, the company said it recorded net postpaid customer additions of 8,235 during the quarter, which reverses a postpaid customer loss of 11,221 last year.
The company said it serves a total of 715,632 customers.
Local average revenue per user increased to $52 from $51 during the first quarter, due primarily to increases in data revenue, said RCC.
The company also announced plans to exchange all of its outstanding 11.375-percent senior exchangeable preferred stock for 11.375-percent senior subordinated debentures. The company also declared payment of all outstanding quarterly dividends on its 11.375-percent senior exchangeable preferred stock and four quarterly dividends on its 12.25-percent junior exchangeable preferred stock.