US Cellular 2014 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2014 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

United States Cellular Corporation
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Summary Operating Data for U.S. Cellular Core Markets
Following is a table of summarized operating data for U.S. Cellular’s Core Markets. For comparability,
Core Markets as presented here excludes the results of the Divestiture Markets and NY1 and NY2
Partnerships as of or for the twelve months ended December 31, 2013 and December 31, 2012.
As of or for the Year Ended December 31, 2014 2013 2012
Retail Customers
Postpaid
Total at end of period .......................... 4,298,000 4,267,000 4,496,000
Gross additions .............................. 940,000 682,000 746,000
Net additions (losses) .......................... 31,000 (217,000) (92,000)
ARPU(1) ................................... $ 56.75 $ 54.23 $ 53.65
ARPA(2) ................................... $ 133.19 $ 115.00 $ 120.78
Churn rate(3) ................................ 1.8% 1.7% 1.5%
Smartphone penetration(4) ...................... 59.8% 50.8% 41.1%
Prepaid
Total at end of period .......................... 348,000 343,000 342,000
Gross additions .............................. 274,000 295,000 288,000
Net additions (losses) .......................... 5,000 2,000 124,000
ARPU(1) ................................... $ 34.07 $ 31.45 $ 32.98
Churn rate(3) ................................ 6.4% 6.7% 5.2%
Total customers at end of period .................... 4,760,000 4,774,000 5,022,000
Billed ARPU(1) ................................. $ 53.49 $ 50.82 $ 50.54
Service revenue ARPU(1) ......................... $ 60.32 $ 57.66 $ 58.49
Smartphones sold as a percent of total handsets sold . . . 81.3% 73.0% 58.9%
Total Population
Consolidated markets(5) ......................... 50,906,000 58,013,000 83,384,000
Consolidated operating markets(5) .................. 31,729,000 31,759,000 31,445,000
Market penetration at end of period
Consolidated markets(6) ......................... 9.4% 8.2% 6.0%
Consolidated operating markets(6) .................. 15.0% 15.0% 16.0%
Capital expenditures (000s) ....................... $ 557,615 $ 735,082 $ 768,884
Total cell sites in service .......................... 6,220 6,161 6,130
Owned towers in service .......................... 3,951 3,883 3,847
(1) Average Revenue per User (‘‘ARPU’’) metrics are calculated by dividing a revenue base by an
average number of customers by the number of months in the period. These revenue bases and
customer populations are shown below:
a. Postpaid ARPU consists of total postpaid service revenues and postpaid customers.
b. Prepaid ARPU consists of total prepaid service revenues and prepaid customers.
c. Billed ARPU consists of total postpaid, prepaid and reseller service revenues and postpaid,
prepaid and reseller customers.
d. Service revenue ARPU consists of total postpaid, prepaid and reseller service revenues, inbound
roaming and other service revenues and postpaid, prepaid and reseller customers.
(2) Average Revenue per Account (‘‘ARPA’’) metric is calculated by dividing total postpaid service
revenues by the average number of postpaid accounts by the number of months in the period.
7