NEW YORK-United States Cellular Corp. and Aerial Communications, the two wireless subsidiaries of Telephone and Data Systems Inc., Chicago, reported strong growth during the first quarter.
U.S. Cellular reported net income of $47.14 million, an increase of more than 69 percent from the same period a year ago. Its earnings per share followed suit, rising to 54 cents from 32 cents.
During the past year, the carrier added 437,000 new customers, closing the first quarter with nearly 2.7 million subscribers. Net customer additions, particularly strong in February and March, totaled 105,000, compared with 87,000 net adds during the year-ago quarter. For the calendar year 2000, U.S. Cellular estimates new net customer additions will total 380,000 to 390,000, said Kenneth R. Meyers, executive vice president of finance.
Monthly roaming revenues dropped to $9.21 per unit in the first three months of this year, vs. $10.62 a year earlier. Average monthly revenue per unit also declined, to $43.48 from $47.18 a year ago.
However, U.S. Cellular increased its market penetration to 10.81 percent, up from 9.2 percent a year earlier. During the same 12-month period, its total monthly customer churn rate dropped slightly, to 2 percent from 2.1 percent. Churn among postpaid subscribers also declined a bit, to 1.8 percent from 2 percent.
“U.S. Cellular has unique opportunities for growth and for continued improvement in customer service. It is financially well positioned and has good market breadth,” said John R. Rooney, who became the company’s president and chief executive officer April 10.
The former Ameritech Corp. executive added, “I am pleased to be back in the cellular business and especially to be at U.S. Cellular.”
At the end of March, Aerial Communications, TDS’ personal communications services subsidiary, received government approval to be acquired by VoiceStream Wireless Corp. TDS executives said they expect that merger to close May 4.
Aerial reported it added 50,600 customers to close the first quarter with a subscriber base of 473,500, compared with 331,600 a year earlier. Market penetration increased slightly to 1.7 percent, up from 1.2 percent a year ago. Overall churn, including prepaid units, was at 2.7 percent, Aerial’s lowest rate ever. However, ARPU declined to $46.84 from $47.64 during the last quarter of 1999.
Aerial’s revenues increased by 34 percent to $67.53 million when compared with the first quarter of 1999. Nevertheless, Aerial reported a net loss of $49.44 million, or 52 cents per share. By comparison, it reported a net gain of $33.38 million, or 46 cents per share, a year earlier.
