Hurricane Katrina Damages Alltel 4Q Profits

LITTLE ROCK, Ark. -(Dow Jones)- Alltel Corp.'s fourth-quarter profit fell 5.7%, reflecting incremental costs of $9.5 million for Hurricane Katrina.

In a press release Friday, the communications concern said net income fell to $255.1 million, or 66 cents a share, from $270.6 million, or 89 cents, a year ago.

Excluding costs associated with the hurricane and other items, Alltel's earnings from current businesses rose to $300.6 million from $270.1 million. However, per-share profit decreased to 77 cents from 89 cents on a 28% increase in the number of shares outstanding in the latest period..

Analysts surveyed by Thomson First Call expected Alltel to earn 83 cents a share.

Alltel reported a profit dip, despite revenue growth of 21% to $2.58 billion from $2.14 billion. Wall Street expected the company to generate revenue of $2.59 billion.

The company said revenue growth was driven by its wireless business. Total wireless ARPU rose 6% to $52.13. ARPU refers to average revenue per user.

Alltel added 147,000 net new wireless customers during the latest fourth quarter. Within the heritage markets, the company added 76,000 post-paid and 90,000 pre-paid. It signed 18,000 net customers in the former Western Wireless markets, but lost 37,000 in the former Cingular markets.

Company Web site: http://www.alltel.com

-Eamon Beltran; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 20th January 2006