Alltel Q1 revenues increased to $2.3 billion, up 11 percent compared to the same period a year ago. Service revenue (not including revenue from equipment sales) was $2.09 billion. However, the company reported a net loss for the quarter of $125 million, due “primarily to significant increases in interest costs and depreciation and amortization expense following the completion of the merger” with an affiliate of TPG Capital and GS Capital Partners in November. Consolidated EBITDA was $874 million, up 18 percent year-on-year.
The big news Alltel (NYSE: AT) trumpeted was over 1 million gross customer additions (up 26 percent), although net additions were obviously a lot smaller — 385,000 (up 63 percent), of which 163,000 were post-pay. It now has a bit over 13 million customers. Average revenue per user (ARPU) was $53.64 per month, up 2 percent from last year. Data ARPU increased 60 percent year-on-year, to $7.50.
Alltel also announced plans to move to LTE in the next 3-5 years, although it’s still in the planning phase and doesn’t have any money for the network expansion, reports Telephony Online. It may also have trouble with a lack of appropriate spectrum.