Earnings: Alltel Reports Solid 2Q; Prepares For Merger With Verizon Wireless
Alltel (NYSE: AT), the fifth-largest U.S. carrier, said yesterday it achieved strong customer growth in the second quarter, and is preparing for its merger with Verizon Wireless (NYSE: VZ) to close later this year following regulatory approvals. Together, the two companies will make the largest U.S. carrier. Release. Spreadsheet.
SEE ALSO: Verizon Wireless Says It Added 1.5 Million Subs In Q2
Highlights for the second quarter:
— Customers: The Little Rock, Ark.-based company said it added more than 1 million gross customers, a 37 percent increase from a year ago. Total net adds were 319,687, compared to the year-ago period when it added 181,494.
—Revenues: Second quarter revenues totaled $2.39 billion, up 10 percent from the same period a year ago.
—Losses: The company reported a net loss of $69.9 million, which it explained was primarily due to significant increases in interest costs and depreciation and amortization expense following the completion of the company’s November 2007 merger with private equity firms TPG Capital and GS Capital Partners. In the year ago period, the company made $195.7 million during the quarter. Alltel also reported consolidated EBITDA of $898.3 million, a 15 percent increase from the same period a year ago.
—Churn: Total churn was 1.92 percent, and was up slightly from the year-ago period of 1.67 percent.
—ARPU: Alltel said ARPU (average revenue per user) was $54.42, up 1 percent from last year, but it was really data revenue where it saw a bit jump. It said data ARPU was $8.18, increasing 45 percent year-over-year.
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