LITTLE ROCK, Ark.-Alltel Corp. reported $1.1 billion in wireless service revenues during the first quarter of 2003, which was a 17-percent increase compared with the $944 million the telecommunications provider posted during the first quarter of 2002. Wireless income also increased seven percent from $220.2 million last year to $236 million during the first quarter of this year.
Despite the increase in wireless revenue, Alltel posted a 2-percent drop in wireless operating margin that fell from 23.3 percent during the first quarter of 2002 to 21.3 percent this year.
Alltel also reported 159,251 net subscriber additions during the first quarter of this year, including 48,331 net internal additions and 110,920 customers added through the acquisition of wireless properties in Mississippi and by acquiring majority ownership of two additional partnerships. Alltel reported 80,250 net customer additions during the first quarter of 2002, which the company said were all internal additions.
Customer churn increased from 2.44 percent during the first three months of last year to 2.66 percent this year, though Alltel noted that postpaid churn dropped from 2.31 percent last year to 2.16 percent this year. Average revenue per user increased slightly from $45.54 during the first quarter of 2002 to $45.59 this year while the cost per gross customer addition dropped from $316 last year to $285 during the first quarter of this year.
Alltel also reported that its board of directors declared a 35-cent quarterly dividend on the company’s common stock payable on July 3 to shareholders of record as of June 9.
