TDS Profit Rises

Diversified telecommunications company Telephone & Data Systems'(TDS Quote) second-quarter earnings rose 78% from the year-ago period.

The Chicago-based company earned $172.4 million, or $1.48 a share, in the quarter, compared with $97.1 million, or 83 cents a share, a year ago. For the most recent quarter TDS recorded a gain on investment of $90.3 million. Analysts polled by Thomson First Call were expecting earnings of 81 cents a share.

Second-quarter revenue rose 9.9% from a year ago to $1.07 billion.

Total U.S. cellular customers in the quarter rose 9% year-on-year to 5.7 million customers and retail customers rose 9% to about 5.10 million. U.S. cellular average monthly revenue a unit increased 4.5% to $46.52. The number of ILEC digital subscriber lines rose 55% and that of CLEC DSL lines grew 19% year-on-year.

Operating income for the quarter declined 1% from a year ago to $105.9 million.

The company's shares fell 3 cents to $42.96 Tuesday.