Regional carrier U.S. Cellular saw its profits fall 43 percent in the first quarter despite improvements in churn and ARPU.
The company, which is owned by Telephone & Data Systems, said it made $48.23 million in the first quarter, or $0.55 per diluted share, compared to $84.5 million, or $0.97 per share, during the same period last year.
The company posted $965 million in service revenue, a decline from last year's sales of $983 million.
A marked rise in data revenue helped offset declines in voice to bring total retail service ARPU to $46.99, compared to $46.87 during the same period last year. Churn improved to 1.4 percent over last year's 1.5 percent.
U.S. Cellular also marked its second-straight quarter of subscriber growth after losses in the second and third quarters of last year. The company added 6,000 net subscribers and said it added 24,000 net retail subscribers after an increase in prepaid subscribers offset the loss of 9,000 postpaid subscribers.
U.S. Cellular also appointed Mary Dillon as president and CEO to replace John "Jack" Rooney, who earlier announced his retirement. The appointment will become effective June 1.
Dillon joins U.S. Cellular from McDonald's Corp., where she was global chief marketing officer and executive vice president, with responsibility for worldwide marketing efforts and global brand strategy.