LITTLE ROCK, Ark.-Alltel Corp. posted a 5-percent increase in wireless service revenues from $1.195 billion during the second quarter of 2003 to $1.253 billion this year, while wireless net income dropped slightly from $262 billion last year to $261.6 billion this year.
The company’s total net income including its wireline business dropped more than 50 percent from $548.1 million last year, or $1.75 per diluted share, to $262.5 million this year, or 85 cents per diluted share, which was linked to a one-time $323.9 million gain on the sale of discontinued operations during the second quarter of 2003.
Total wireless net customer additions increased 39 percent year-over-year from 111,411 during the second quarter of 2003 to 155,307 subscribers this year, while internally generated customer growth jumped 92 percent from 80,998 subscribers last year to the full 155,307 new customers added during the second quarter of 2004. Boosting the strong customer growth was a dip in customer churn from 2.45 percent last year to 2 percent this year with postpaid customer churn at a reported 1.57 percent for the second quarter of this year.
Average revenue per wireless subscriber decreased from $48.01 during the second quarter of 2003 to $47.79 this year, while the cost per gross addition dropped 3 percent from $322 to $313, and the cash cost per user increased 4 percent from $20.82 last year to $21.68 this year.
