US Cellular's latest figures show that while the network saw its revenues remain constant, net profits fell by nearly half compared to the same period last year. It coined $35.5 million in net profit this quarter, down from the $62.1 million it made in Q3 2011 despite bringing in $1.04 billion in turnover both times. The cause of this reduced profitability is said to be down to higher subsidies on LTE devices, which represented a full 50 percent of the company's smartphone sales in the quarter.
While the carrier has reversed the trend of losing customers, it only managed to add a rather measly 9,000 new customers in the three-month period. That could be part of the motivation behind US Cellular selling off a big chunk of its Midwestern operations to the now cash-rich Sprint -- so it can concentrate on areas where business is stronger.
Filed under: Cellphones, Wireless, Mobile
US Cellular takes hit on LTE devices, profits halved to $35.5 million in Q3 2012 originally appeared on Engadget on Wed, 07 Nov 2012 07:59:00 EDT. Please see our terms for use of feeds.
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