Rural Cellular up on hearty first-quarter financials

Regional carrier Rural Cellular Corp. reported healthy customer metrics despite posting a net loss for the first quarter of 2007; the carrier cut its churn rate, gained subscribers and improved its average revenue per user compared with the year-ago period.
The carrier gained nearly 10,000 net new subscribers during the quarter, of which about 8,200 were postpaid. RCC cut its churn rate substantially, from 2.6% in the first quarter of 2006 to 1.9% this year. The carrier also saw a sequential drop in churn, from 2.2% in the fourth quarter of 2006.
RCC recorded a net loss for the quarter of about $8,500, down from a $20,800 loss in the first quarter of 2006 and a loss of about $53,600 in the fourth quarter of 2006. The company cut its acquisition costs per customer from $532 in 2006’s first quarter to $478 in the first period of 2007. Its total revenues were up to $140 million for the quarter, from $133 million in the prior first quarter.
RCC increased its non-roaming ARPU from $51 in the first quarter of 2006 to $52 in the same period of 2007. When roaming revenue was included, ARPU totaled $72 in 2007’s first quarter, up $3 from the previous year’s first quarter.
Minnesota-based RCC provides wireless service in the rural areas of 15 states in the Midwest, Northeast, Northwest and South.
Rural Cellular’s stock was up on the news to around $26.14 per share.