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Telecoms

Competitive pricing pressure sees US Cellular's fourth-quarter revenues miss forecasts

The firm reported total operating revenues of US$991mln for the three months to December 31, below the consensus forecast for US$1.03bn.

Competitive pricing pressures saw cellphones operator United States Cellular Corporation's (NYSE:USM) fourth-quarter 2016 revenues miss forecasts, but its loss per share was lower than estimated.

The firm reported total operating revenues of US$991mln for the three months to December 31, up from US$987mln for the same period a year earlier, but below the consensus forecast for US$1.03bn.

US Cellular’s diluted net loss was US$0.07 per share, up from a net loss of US$0.02 per share in the comparable period the year before, but better than the average US$0.25 net loss per share forecast by analysts.

Kenneth R. Meyers, the group’s president and CEO, said: "2016 was a year of continued progress for U.S. Cellular.”

He added: “Greater smartphone adoption and increased data usage, combined with strong cost management, helped to offset some of the competitive pricing pressures throughout the year.

Looking at the current year, Myers said: “We will continue to drive costs out of the business, while capitalizing on opportunities to drive additional revenue via accessory sales, the internet of things, and business and government connections."

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