Atlantic Tele-Network (ATNI), which operates Alltel Wireless, saw its stock price surge early Thursday as analysts upgraded the company’s stock following positive trends in its first quarter financial release.
The carrier reported that its domestic wireless operations lost 1,131 customers during the first three months of the year, with postpaid customer losses just about covered by strong growth in its prepaid offering. The loss was a significant improvement compared with 2011 results in which the carrier lost 43,665 subscribers during the first quarter.
Helping to stem the losses was an improvement in customer churn, which dropped from 4.29% during the first quarter of 2011 to 3.22% this year.
ATN noted that at the end of the first quarter it served 447,604 postpaid customers and 130,981 prepaid subscribers. The carrier ended the quarter with 578,585 total subscribers on its U.S.-based network.
ATN reported a deal earlier this week with fellow regional operator U.S. Cellular to partner on Alltel’s U Prepaid offering for distribution through select Walmart locations.
Average revenue per user increased year-over-year from $47.23 during the first quarter of 2011 to $49.36 this year. This increase was not enough to make up for a significantly smaller customer base as U.S.-based revenues dropped from $144.4 million in 2011 to $134.1 million this year. The biggest decline came from the carrier’s retail operations as its wholesale service actually posted a small, year-over-year gain.
ATN’s total revenues, including its international wireless and wireline operations dipped from $188.2 million in 2011 to $182.9 million this year, showing strong returns in those segments. A drop in expenses helped to more than double the company’s net income from $4.5 million during the first quarter of 2011 to $9.3 million this year.
Stephens upgraded its rating on ATN’s stock to “overweight” following the release of Q1 results, sending the company’s stock up more than 17% to $39.44 per share.
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