US Cellular 1Q Profit Rises, Beats Estimates

CHICAGO (AP) — Wireless carrier United States Cellular Corp. posted a 20 percent jump in first-quarter profit Wednesday, topping analysts' predictions, as it added customers and service revenue increased.

U.S. Cellular earned $84.6 million, or 97 cents per share, in the three months ended March 31. That compares with $70.6 million, or 80 cents per share, a year earlier. Analysts polled by Thomson Reuters expected 53 cents, on average.

Sales met the average forecast, climbing about 1 percent to $1.05 billion.

"We had solid gains in postpay customers, who are the cornerstone of our strategy," Chief Executive John Rooney, said in a statement, referring to customers that have signed service contracts rather than paying in advance for a certain number of minutes.

The company said it ended the quarter with 60,000 more postpay customers in its retail division, down from 72,000 additions in the same quarter a year ago.

It had a 1 percent rise in average revenue per customer to $52.54.

Shares jumped $5.90, or 17 percent, to $40.93 in afternoon trading. The stock has traded between $27.18 and $68 over the past year.