Alaska Communications Systems Revenues Up by 19%

Alaska Communications Systems has reported a 19% rise in Q2 revenues to US$96.1 million, and a net income of US$2.5 million, compared to a profit of US$600,000 a year ago. EBITDA of $31.1 million was up 2.3 percent from prior year EBITDA of $30.4 million, with gains in enterprise and wireless more than offsetting structural declines in retail, wholesale and access wireline revenue.

Liane Pelletier, ACS president and chief executive officer commented "While wireless revenues were essentially flat, EBITDA margins expanded from 41.3 percent to 45.6 percent year-over-year, with execution in gross adds, data revenue, customer retention and cost management all improving sequentially. Challenges for the quarter included lower tourist traffic which affected roaming revenue and major iPhone promotions which muted subscriber metrics. Our "Alaska focused" go-to-market strategy is playing well, leveraging testimonials with locals, expanded coverage in key areas and devices like the water-proof and rugged Casio Boulder which was the fastest selling phone in the quarter,"

The operator ended Q2 with 142,028 wireless subscribers, compared to 143,598 in Q1 and 148,617 in Q2 2008. Heavy iPhone promotions in the market were blamed for the decline.

Looking ahead, the company expects 2009 full year revenue and EBITDA to exceed 2008 levels.

Posted to the site on 31st July 2009