GREENSBORO, N.C.-Vanguard Cellular Systems Inc. reported in its third-quarter results that while the company’s overall service revenue increased 26 percent over the same three-month period last year, net income for the quarter fell 62 percent compared with 1996 figures.
Vanguard’s third-quarter service revenue increased from $75.3 million in 1996 to $94.7 million for the quarter ending Sept. 30. The company added 35,000 net subscribers during the period, bringing the total to 615,000. This is a 33-percent increase from a year ago. With the additional subscribers, service revenue per subscriber dropped slightly to $53, a 6-percent decline over third quarter 1996.
However, in a much larger drop, Vanguard’s net income fell from $2.9 million, or 7 cents per share, during third quarter 1996, to $1.1 million, or 3 cents per share, for the same period this year. Net income for the third quarter of 1997 did not include a net tax benefit, as has been recorded in the previous three quarters, reported the company.
