United States Cellular Corporation reported service revenues of $853.6 million for the first quarter of 2014, versus $996.3 million for the same period one year ago. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $19.5 million and $0.23 respectively…
United States Cellular Corporation reported service revenues of $853.6 million for the first quarter of 2014, versus $996.3 million for the same period one year ago. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $19.5 million and $0.23 respectively, for the first quarter of 2014, compared to $4.9 million and $0.06, respectively, in the comparable period one year ago.
Year-over-year comparisons are affected by the divestiture transaction and the deconsolidation of certain partnerships, both in 2013.
"With our competitive range of plans and strong smartphone selection, including the iPhone, we have had success attracting new customers and increasing smartphone adoption and data use," said Kenneth R. Meyers, U.S. Cellular president and CEO. "This is reflected in higher gross customer additions and average revenue per customer. We're driving our smartphone penetration and data growth strategies by bringing 4G LTE access to 93 percent of our customers in 2014, and offering high-demand devices like the new Samsung Galaxy S5. Network quality is the foundation of our strategy to increase customer additions and build loyalty.
"We've made significant progress to return service levels to our normally high standards following the billing system conversion. While churn is still elevated, we are currently seeing improvements in both voluntary and involuntary churn from peak levels back in 2013 and early 2014. Additionally the new system has already enabled us to deliver more products and services that meet our customers' needs, like our Shared Connect Plans, new no contract Simple Connect Plans, and device installment contracts.
"The industry pricing environment is very dynamic at the present time. However, we're confident that we have the right offerings for our target customers and we'll continue to price them at competitive levels. We have a strong financial foundation that will enable us to support our current initiatives and to continue to invest in our future by further expanding and enhancing our network and retail distribution."
2014 Estimated Results
Capital expenditures for 2014 are expected to be approximately $640 million, down from $738 million in 2013.
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