Alltel reports record growth boosted by prepaid

As it continues to be the target of rumors of an acquisition by one of its larger competitors, Alltel Corp. enthusiastically reported double-digit revenue growth during the first quarter of 2007. Revenues for the quarter hit $2 billion as net income reached $225 million, a 34-percent increase from the same period a year ago.
The No. 5 carrier said it added a company-record 237,000 wireless subscribers during the first quarter, which was a 44-percent increase over the first quarter of 2006. Alltel did note that less than half of net additions this year were on post-paid plans. The carrier said it ended the quarter with more than 12 million customers on its network. Alltel reported postpaid churn of 1.3 percent and total churn of 1.8 percent, which it claimed were record lows for the carrier and reflect year-over-year improvements for the fifth consecutive quarter.
Average revenue per wireless customer was $52.49 for the quarter while the average data revenue per customer increased 64 percent from the year ago period to $4.70.
“This was a record-setting quarter for Alltel in both our financial and operational results. We are continuing to win new customers in the market, as demonstrated by new records in wireless revenues, operating income and customer growth,” Alltel President and CEO Scott Ford said.
Alltel’s stock was basically unchanged on the news, down less than a quarter of 1 percent.
Alltel announced earlier this year that it was conducting a strategic review process, but did not provide any update on its progress.