DOW JONES NEWSWIRES Telephone & Data Systems Inc.'s (TDS) second-quarter earnings more than doubled amid an 81% leap in profit at its U.S. Cellular Corp.(USM), though the carrier continued to struggle with subscriber losses. U.S. Cellular--which accounts for the bulk of TDS' revenue--has steadily been losing postpaid subscribers amid rising competition in a wireless industry nearly saturated with cellphones. Large carriers have continued to add customers on the strength of marquee handsets. TDS reported a profit of $91.1 million, up from $40.3 million a year earlier. On a per-share basis, which reflects payment of preferred dividends, earnings rose to 87 cents from 38 cents a year ago. Revenue improved 3.8% to $1.28 billion. Analysts polled by Thomson Reuters expected per-share earnings of 35 cents a share on $1.27 billion in revenue. Separately Monday, TDS announced a proposal to reclassify its outstanding special common shares into common shares on a one-for-one basis, while retaining the controlling shareholder vote, a move the company said it sought to simplify its capital structure. Meanwhile, U.S. Cellular posted a profit of $73.9 million, or 87 cents a share, up from $40.8 million, or 47 cents a share, a year earlier. Revenue improved 4.5% to $1.08 billion. Wall Street expected per-share earnings of 40 cents a share on $1.07 billion in revenue. "We continued to increase postpaid ARPU and maintain a low churn rate," said U.S. Cellular Chief Executive Mary N. Dillon, adding that subscriber results remained the company's greatest challenge. The carrier said it lost a net 70,000 customers during the period, compared with a loss of 3,000 a year earlier. It ended the period with about 6 million customers, down 2.9% from a year earlier. TDS shares closed Friday at $25.47 while U.S. Cellular finished at $39.70. Shares were inactive premarket. -By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com
