United States Cellular Corporation (USM) has reported 188.89 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $26 million, or $0.31 a share in the quarter, compared with $9 million, or $0.10 a share for the same period last year. Revenue during the quarter dropped 3.41 percent to $936 million from $969 million in the previous year period. Gross margin for the quarter expanded 235 basis points over the previous year period to 56.94 percent. Total expenses were 94.23 percent of quarterly revenues, down from 98.97 percent for the same period last year. This has led to an improvement of 474 basis points in operating margin to 5.77 percent.
Operating income for the quarter was $54 million, compared with $10 million in the previous year period.
“As we outlined at the beginning of 2017, our priorities for the year include protecting our customer base and aggressively promoting our products and services with economically justified offerings,” said Kenneth R. Meyers, U.S. Cellular president and Chief executive officer. “We executed on these priorities during the first quarter and made important progress.
Operating cash flow drops significantly
United States Cellular Corporation has generated cash of $61 million from operating activities during the quarter, down 62.58 percent or $ 102 million, when compared with the last year period. The company has spent $75 million cash to meet investing activities during the quarter as against cash outgo of $102 million in the last year period.
Cash and cash equivalents stood at $572 million as on Mar. 31, 2017, down 25.91 percent or $200 million from $772 million on Mar. 31, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
