Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.
Alltel produced double-digit wireless revenue and segment income growth in Q2 on top of strong wireless customer additions
August 3, 2006
2 Min Read
LITTLE ROCK, Ark. -- Alltel (NYSE:AT - News) produced double-digit wireless revenue and segment income growth in the second quarter on top of strong wireless customer additions. Alltel reported fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of $1.10, which includes several one-time items and wireless intangible amortization. Excluding these items, fully diluted earnings per share from current businesses was 93 cents. This is the final quarter Alltel will report results for the wireline business, which now is part of the operations of Little Rock-based Windstream Corp.
"Our company has completed the spinoff of our wireline business and the sale of all of our international assets, important steps in the transformation of Alltel," said Alltel President and CEO Scott Ford. "Alltel's wireless growth in the second quarter was driven by continuing efforts to expand market share and focus on delivering superior customer satisfaction, which is reflected in a new six-year low in churn. At the same time, Alltel is pushing ahead with key financial goals, including a $3 billion stock repurchase and a $1 billion debt reduction plan."
Among the combined highlights for the second quarter:
Total revenues were $2.7 billion, an 18 percent increase from a year ago. Net income under GAAP was $429 million, up 7 percent. Net income from current businesses was $365 million, a 24 percent increase from a year ago.
Wireless revenue was $1.9 billion, a 28 percent increase from a year ago. Service revenue was $1.7 billion, a 26 percent increase. Segment income was $392 million, a 22 percent increase.
Alltel added 146,000 net new wireless customers, which includes 124,000 post-pay customers and 22,000 prepay customers. In addition, the company added 112,000 net new customers through acquisitions of First Cellular in Southern Illinois and Virginia Cellular. Post-pay churn was 1.47 percent, a 7 percent improvement from a year ago.
Average revenue per wireless customer (ARPU) was $52.54, a 4 percent increase. Data revenue per customer was $3.26, a 61 percent increase, and now represents more than 6 percent of total ARPU.
Wireline revenue was $581 million, down 2 percent from the previous year. Segment income was $235 million, up 9 percent from a year ago. The wireline business added 40,000 net broadband customers.
Equity free cash flow from current businesses was $336 million, a 32 percent increase. Net cash provided from operations was $431 million.
This quarter the company also is reporting pro-forma results for the new, all-wireless Alltel. These pro-forma results present Alltel as if both the spinoff of the wireline business and the acquisition of Western Wireless had occurred on Jan. 1, 2005. The results include the wireless business, the communications support services retained by the company after the spinoff and the operations of Western Wireless.
On a pro-forma basis, revenues were $1.95 billion, up 9 percent, and operating income was $389 million, a 6 percent increase.
Alltel Corp. (NYSE: AT)
You May Also Like
Latest News
Popular whitepapers in 5G
May 21 - May 23, 2024
May 21 - May 23, 2024
Join us for an immersive experience where the future of North American telecom industry unfolds in 2024.
LEARN MORE
