Dobson on Target

It reaffirms.
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Dobson Communications (DCEL) beats lowered targets.

The Oklahoma City wireless telco says it had 23,500 net new subscribers in the third quarter, an improvement from the 17,300 added in the second quarter and reversing 24,100 customer defections in the year-ago quarter.

The average revenue per user in the third quarter surged to $49.10, well above the $48.25 the company had predicted in August. That is a big increase over the ARPU of $46.77 in the same period a year ago.

The company expects about 845 million roaming minutes of use and average roaming yield of approximately 10.3 cents for the third quarter of 2006. This compares with 669 million roaming MOUs and a roaming yield of 12.0 cents for the third quarter of 2005.

Dobson expects to release its full earnings report on Nov. 6.

Shares rose 41 cents, or 6%, to $7.15 in after-hours trading.