U.S. Cellular reported its Q3 results earlier today. According to the Q3 results reported by the Chicago-based carrier, they were able to gain a net income of $17 million along with a 20 cents per share profit. All this was because of the 67,000 net prepaid additions made by the carrier during the quarter.
These results reported by the carrier are a little shy of the average forecast made by four analysts surveyed by Zacks Investment Research, which was 23 cents per share. But as far as estimates go for revenue, the carrier was able to outdo the forecast range as it was able to earn $1.01 billion compared to the projected $985 million.
Since the year started, U.S. Cellular shares declined 16 percent. But just in time for the Q3 results, the stock climbed up by 2 percent by mid-day Friday. U.S. Cellular CEO Ken Meyers says that the carrier has struggled to obtain its long-term goals throughout the quarter, especially since it has been a very competitive industry. Nevertheless, Meyers shares that he is pleased with the financial performance of the company and that they will continue to work hard in striving for exceptional customer experience-- both in customer service and the network being used.
It's interesting to note that the company's sales was boosted up by prepaid sales during the quarter. The company had 6,000 overall net postpaid losses, which include the 7,000 postpaid phone losses brought in by the limited iPhone 7 stocks and the recall of the Samsung Galaxy Note 7. Despite these, the company was able to add 67,000 net prepaid users, which now make up for 480,000 total prepaid users under the carrier. The new additions was able to close in the gap between the ARPU for postpaid and prepaid over the last year.
Now that U.S. Cellular's prepaid industry is gaining ground, Meyers wants to concentrate on the buying attitude of their customers. The carrier is intent on focusing on higher-end prepaid users, especially since this is a market that was once ignored by other operators.
Source: Fierce Wireless