Communications revenues were $1.4 billion, an increase of 13 percent over the same period last year.
Wireless operations added a net gain of 109,000 customers. ALLTEL’s wireless customer base now totals 6.4 million.
Wireless revenues were $864 million, an increase of 17 percent. Operating cash flow was $327 million, an increase of 6 percent.
Wireline revenues grew to $450 million, an increase of 3 percent. Operating cash flow was $271 million, an increase of 6 percent.
Emerging businesses revenues were $111 million, an increase of 31 percent, led by 18 percent customer growth in ALLTEL’s long-distance business. ALLTEL also doubled the number of lines in its competitive local exchange carrier (CLEC) markets.
Revenues at ALLTEL Information Services were $328 million, an increase of 6 percent. Operating cash flow was $85 million, an increase of 6 percent.
We are pleased to report strong financial results for the quarter, producing earnings and wireless customer growth that were at the top end of our guidance, said Joe Ford, ALLTEL chairman and chief executive officer. We continue to execute our business plan of competing for customers and creating value for our shareholders.
Wireless customer growth increased during the quarter as ALLTEL continued to promote a simplified product offering. The company is offering local, regional and national rate plans that include a variety of package minutes.
During the quarter, ALLTEL continued to increase its operating efficiency by consolidating its communications operations from five to three regions.
In the information services business, ALLTEL announced two strategic transactions that position the company for continued growth. First, ALLTEL signed a joint venture with IBM to offer a real-time banking system to financial organizations in Europe. Second, the company strengthened its position as a worldwide leader in lending automation by signing an agreement to process eight million loan/lease accounts for Ford Financial.
One-time items of interest include a $362 million gain on the disposal of assets, including the sale of non-strategic personal communications services licenses, a $69 million charge for ALLTEL’s reduction in force and early retirement offering, and costs associated with the company’s formation of the joint venture with IBM.
