Centennial Posts Higher 1Q Profit As Costs Decline

Centennial Communications Corp., which is being acquired by AT&T Inc., said Tuesday its fiscal first-quarter profit climbed as cost cuts offset a decline in revenue.

Separately, the companies said the Department of Justice has cleared the proposed acquisition, on the condition that AT&T divests Centennial's operations in eight service areas in Louisiana and Mississippi.

For the three months ended Aug. 31, Centennial's net income attributable to the company totaled $19.5 million, or 17 cents per share, up from a profit of $7.5 million, or 7 cents per share, in the same period a year earlier.

Revenue slipped 2 percent to $258.9 million from $265.2 million. However, the wireless and broadband telecom company's total expenses fell 8 percent to $186.6 million.

Centennial ended the quarter with about 1.1 million wireless subscribers, having lost 20,700 net subscribers during the quarter.

The AT&T buyout deal was announced in November 2008. Under the proposal, Centennial shareholders will get $8.50 per share in cash. They approved the deal in February.

Centennial's shares closed earlier up 41 cents, or 5.1 percent, at $8.39.