U.S. Cellular Owner Reports 1Q Gain

CHICAGO (AP) — Telephone and Data Systems Inc., owner of wireless carrier U.S. Cellular Corp., said Wednesday its first-quarter earnings fell 2 percent to $72 million, but the results still beat analyst estimates.

Net income after payment of preferred dividends for the three months through March 31 was down from $73.5 million a year earlier. But the company bought back shares so the per-share profit rose to 64 cents from 62 cents a year earlier.

Revenue grew 1 percent to $1.26 billion from $1.25 billion.

Analysts polled by Thomson Reuters expected, on average, earnings of 55 cents per share on revenue of $1.26 million.

TDS shares rose $2.25, or 7.6 percent, to $31.87 in afternoon trading Wednesday.

The company said U.S. Cellular added a net 47,000 subscribers to 6.2 million.

It also said its wireless customers increased average spending by 1 percent to $52.54 per month.

TDS said its guidance for the year to Dec. 31 remained unchanged from February, with U.S. Cellular seen adding 75,000 to 150,000 net new customers and operating income between $275 million and $350 million.

TDS Telecom, its fixed line and broadband Internet service, was seen having operating income of $100 million to $130 million for the full year.