LAKE CHARLES, La.-US Unwired Inc. reported $148.8 million in revenues for the third quarter, more than double the $71.4 million the Sprint PCS affiliate posted for the same quarter last year. Net losses also more than doubled from $21.6 million last year, or 26 cents per share, to a loss of $53.8 million this year, or 42 cents per share.
Net customer additions for the quarter dropped from 35,107 subscribers last year to 2,227 subscribers this year, which the company attributed to a dramatic increase in postpaid customer churn from 1.8 percent last year to 4.7 percent this year.
“Approximately 70 percent of the postpay customers disconnecting during the third quarter was due to non-payment,” explained Robert Piper, president and chief executive officer of US Unwired. “This is a direct result of overly aggressive credit policies in previous periods and does not reflect our efforts during the third quarter.”
Piper said the carrier adjusted its compensation program for its direct distribution outlets to provide increased incentive for higher credit quality customers and is now requiring deposits from all customers who have shown poor credit histories.
