As Verizon Wireless works to purchase the carrier, Alltel Communications L.L.C. announced the addition of 319,687 customers in the second quarter, showing it is still thriving even as its potential end draws near.
Verizon Wireless said in June that it would acquire Alltel in a deal worth $28 billion, a move that – if approved – would push Verizon Wireless into the nation’s No. 1 slot. Alltel said it expects the deal to close by the end of this year.
In the quarter, Alltel said it added more than 1 million gross customers through internal growth, and posted net additions of 319,687 customers. Of those, postpaid net additions were 217,047, up 20% year-over-year, and prepaid net adds totaled 99,089 subscribers. The carrier said 3,551 net adds came from resellers.
As for the carrier’s customer metrics, Alltel posted average revenue per user (ARPU) of $54.42, up 1% from last year. The carrier’s data revenue per wireless customer was $8.18, up 45% year-over-year.
The carrier’s total churn hit 1.92%, with postpaid churn of 1.21% during the quarter.
On the financial side, Alltel’s revenues were up 10% from last year, to $2.39 billion. However, the carrier lost $69.9 million during the quarter, which Alltel said was due to increases in interest costs and depreciation, and expenses from November when TPG Capital and GS Capital Partners purchased the carrier.
Ric Prentiss, of Raymond James Financial Inc., said Alltel continued showing solid revenues from roaming, which he said was one of the primarily drivers of Verizon Wireless’ purchase of the carrier.
Alltel collects 319,687 customers in Q2
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