United States Cellular Corp. was once again the cash cow in Telephone and Data Systems Inc.’s family of wireless businesses during the third quarter.
USCC’s net income increased 38.6 percent to $36.2 million, or 42 cents per share, from $26.1 million, or 30 cents per share the previous year. The company reported a 44-percent increase in customer growth since Sept. 30, 1996, resulting in substantial increases in service revenue and operating cash flow. Service revenues increased 29 percent to $226.2 million for the third quarter compared with $175.9 million for the third quarter 1996.
TDS said its third quarter results reflect cellular and local telephone services, offset by personal communications services start-up costs which reduced net income by $39.5 million. Net income declined to $106,000, or 14 cents per share, during the third quarter from $19.3 million, or 36 cents per share during the third quarter of 1996.
Aerial Communications, TDS’ PCS business, reported a net loss of $76.6 million, or $1.07 per share, for the third quarter of 1997 compared with a net loss of $9.8 million, or 14 cents per share, for the previous year. The company added 37,000 customers during the quarter, bringing its total number of customers to about 65,000.
J. Clarke Smith, Aerial’s vice president of finance and administration, said the company expects to offer dual-mode dual-band Global System for Mobile communications handsets by early 1998. Nokia Corp. and Ericsson Inc. are aggressively developing the technology.
American Paging Inc. continued to show poor results, though improving its net loss. Net loss for the third quarter was $13.4 million, or 67 cents per share, compared with net loss of $18.6 million, or 93 cents per share, for the same quarter last year. Service revenue decreased 11.1 percent compared with the previous year.
“The biggest problem at the moment is the size of [the company’s] sales force,” said API’s President and CEO Terrence Sullivan. “We’ve been identified as a wounded animal in the market, and our competitors are targeting our sales force. I don’t have enough people on the street.” Sullivan said the company has lost about 100 employees during the last nine months.
