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Alltel Reports 11% Increase in Third-Quarter Wireless Profits

6:30 am on October 30, 2006 | Category: Business, Telecom Services, Wireless

Arkansas-based wireless provider, Alltel Corp., announced late last week that it generated healthy profits of $402 million, or $0.60 per share, in the third quarter, an 11% increase over the same period in 2005.

The companyâ€™s total revenue also increased (by 12%) to $2.01 billion in the three month period ending on September 30.

These results were impressive, but fell slightly short of analystsâ€™ expectations. A Thomson Financial survey of analysts had predicted a profit of $0.64/share, on revenue of $2.03 billion.

Alltelâ€™s average revenue per customer fell by about 1% compared to last year, to $55.76, but the addition of 101,000 new wireless customers during the third quarter bolstered overall revenue and profits considerably.

“Alltel’s focus on investing in our business paid off this quarter with strong customer growth, a trend our company has enjoyed through the first three quarters of this year,” noted the companyâ€™s president and CEO, Scott Ford.

Ford went on to say that Alltel is “striking the right balance between customer growth and long-term profitability” and added that the corporationâ€™s debts have now been reduced to less than $1 billion.

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