(RTTNews) - Thursday, telephone and broadband service provider Telephone and Data Systems Inc. (TDS: News ) reported a 65% decline in profit for the third-quarter, reflecting the absence of investment income, rise in expenses and decline in revenues. The company reaffirmed its earlier issued full year guidance.

The Chicago, Illinois-based company's net income attributable to the shareholders dropped to $35.63 million or $0.33 per share from $101.21 million or $0.87 per share for the prior year period. Excluding net income attributable to non-controlling interests, the company's net income declined 62% to $47.27 million from $122.99 million a year earlier.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter.

Operating revenues for the quarter were $1.26 billion, down 4% from $1.30 billion a year ago. Analysts estimated revenues of $1.25 billion for the quarter.

Total investment and other expense for the third quarter was $2.61 million compared with total investment and other income of $31.88 million. For the year earlier period, results reflect a gain on investments and financial instruments of $32.00 million.

Total expenses were moderately higher at $1.18 billion compared with $1.15 billion for the year-ago period mainly due to a rise depreciation, amortization and accretion expenses.

Telephone and Data Systems provides broadband and telephone services through its business units, U.S. Cellular which providers wireless services and TDS Telecom which provides wire-line services.
On segment basis, operating revenues of U.S. Cellular dropped by 3% to $1.06 billion from $1.09 billion for the same period last year, TDS Telecom revenues declined 5% to $196.54 million from $205.99 million a year earlier.

In the company's U.S. Cellular segment, total customers at the end of the quarter were 6.13 million, down from 6.18 million at the end of the same period last year. Average monthly revenue per unit slipped $1.10 to $53.49 from $54.59 a year-ago.

Operating revenues from data services in the company's TDS Telecom rose by 14% to $26.17 million from $22.96 million last year. However, the rise in data revenues were more than offset by the decline in voice and network access revenues for which the total operating revenues of TDS Telecom dropped 2% to $149.66 million from $152.99 million last year.

For the nine-month period, net income attributable to shareholders dropped 32% to $177.35 million or $1.60 per share from $262.43 million or $2.24 per share a year-ago. Excluding, net income attributable to non-controlling interests, income was $231.20 million, down 28% from 319.76 million for the same period last year.

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