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Aquisition Expenses Eat at Alltel

Posted by Kallan Dahn Thursday, August 14, 2008

Alltel reported a 10% increase in revenue for their second quarter, coming in just over $2.39 Billion dollars. This is a strong quarter based on the companies past performance. Alltel added 319,687 net subscribers, which is up 37% from second quarter last year.(181,494 subscribers 2Q last year) Alltel's total subscriber base is now 13.4 Million Customers. While their Post paid churn rate was 1.21% their ARPU was up 1%, coming in at $54.42. Data revenue took a massive leap for the company this quarter rocketing 45%. Despite all the positive reporting, and a strong quarter Alltel posted a quarterly loss of $69.9 Million. The loss can be attributed to interest, depreciation, and amortization costs from the purchase of Alltel by an affiliate of TGP Capital and GS Capital Partners, where the company was taken from Wall street to privately held. Alltel and Verizon have penned an agreement to merge. Currently this agreement is pending approval from regulatory bodies.









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