US Cellular posts 81% increase in profit in 2Q; customer numbers continue to fall

10 Aug 2011

Wireless operator US Cellular reported a profit of USD73.9 million in the period from April to June this year, up from USD40.8 million in the same period a year previously, and equating to an 81% jump. Revenue increased to USD1.08 billion, up 4.5% year-on-year. US Cellular said that it had continued to increase post-paid average revenue per user (ARPU) to USD51.84, mainly on the back of growth in smartphones, and maintain a ‘low’ churn rate at 1.4% during the three months under examination. However, it has not been able to stem the tide of a decline in new subscriber additions; a total of 226,000 new customers signed up to services in the quarter, down from 307,000 in 2Q-10; there was a net 58,000 reduction in retail customers in the quarter, compared with an increase of 7,000 in the corresponding quarter a year earlier. Overall, as of 30 June 2011 US Cellular claimed 5.968 million customers, an overall decrease of 2.9% from 6.144 million at the end of 2Q-10. Post-paid subscriber numbers fell by 41,000, while the pre-paid segment lost 17,000 customers.

United States, US Cellular Corporation