Boston, MA 03/03/2014 (wallstreetpr) – United States Cellular Corporation (NYSE:USM) reported fourth quarter results recently. The company managed to trim losses but lost out on revenues on account of churn.
The Fourth Quarter Results:
United States Cellular Corporation (NYSE:USM) reported revenues of $825.1 million for 4Q2013 against revenues of $1.01 billion for the same period last year. The analysts were expecting the company to declare revenues of $938.2 million for the fourth quarter. The revenues represent a decline of more than 19% over the same period last year. However, the company managed to beat the analysts on the earnings front. Analysts were expecting the company to declare loss of $0.80 per share, the company managed to declare earnings of $0.02 per share. It had posted a loss of $0.47 per share during the same period last year. Net income attributable to United States Cellular’s shareholders was $1.6 million against $(39.6) million for the same period last year. However, y-on-y comparisons are affected on account of deconsolidation of certain partnerships as well as Divestiture transaction.
Some Positives Still Remain:
United States Cellular Corporation (NYSE:USM) was affected by billing system issues that affected churn as well as the overall financial performance. The company also divested from underperforming markets. This would enable the company to deploy resources across more profitable markets. The company also shifted to a new and more effective billing and operational support system. It introduced Apple products as well as shared data plans in order to monetize its 4G LTE network. Currently, the company’s 90% of customers are covered under the 4G LTE network. This gives the company a strategic advantage over its competitors and will assist the company in its data growth strategies.
United States Cellular Corporation (NYSE:USM) also plans to sell non-strategic spectrum for over $400 million. The company returned $482 million to its shareholders through a special dividend.
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