Alltel Records 1Q Loss of $124.9 Million on Merger Expenses

Alltel Corp. of Little Rock posted a first-quarter net loss of $124.9 million, compared with a profit of $230.1 million a year ago.

Revenue for the quarter was $2.3 billion, up 11 percent over the 2.1 billion for the same period of 2007.

The wireless company said the loss was due primarily to significant increases in interest costs and depreciation and amortization expense following the completion of its merger with Atlantis Holdings LLC, an affiliate of TPG Capital and GS Capital Partners, last November.

Alltel said it added just over 1 million gross customers through internal growth, a 26 percent increase from a year ago. Post-pay net additions were 163,000, up 50 percent year-over-year, and pre-pay net adds were 183,000. Reseller net adds, which Alltel is including this quarter to be consistent with industry practice, were 39,000. Total net adds were 385,000, an all-time high.

Post-pay churn was 1.34 percent, essentially flat year-over-year, and total churn was 1.83 percent, up 6 basis points year-over-year.

Average revenue per wireless customer was $53.64, up 2 percent from last year. Data revenue per customer reached a new high of $7.50, a 60 percent increase year-over-year.

"We are pleased with our results across the board, and I am extremely proud of our team for staying focused in our first full quarter under new ownership," said President and Chief Executive Officer Scott Ford. "We are off to a strong start for the year, with consolidated EBITDA up 18 percent year-over-year."