Good morning. My name is Teresa and I will be your conference operator today. At this time, I would like to welcome everyone to the Alltel Second Quarter 2008 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions]. Thank you.
Ms. Holly Larkin, you may begin your conference.
Holly Larkin - Treasurer and Secretary
Good morning, everyone. Welcome to Alltel's 2008 second quarter conference call. My name is Holly Larkin and I am the Treasurer for Alltel. Thank you for participating in this discussion of our second quarter results.
Today's conference call was preceded by our second quarter 2008 earnings release. This press release has been distributed on the newswires and is available from our website at www.alltel.com.
Today's conference call should be considered together with our press release and related financial information.
Today's discussion includes statements about expected future events and future financial results that are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events or results to differ materially from those expressed in such statements.
Other factors that could cause actual results of Alltel to differ materially, many of which are beyond the control of Alltel include but are not limited to, the items listed in the Safe Harbor statement contained in our second quarter 2008 earnings press release.
Additionally, today's discussion will include certain non-GAAP financial measures. Again, we refer you to the Investor Relations section of our website, where we have posted our earnings release and supplemental material, which contain information regarding these non-GAAP financial measures, including a reconciliation of each such measure to the most directly comparable GAAP measure.
Note that a live webcast of this call is available on our website. To access the call, go to the Investor Relations section and click on the live webcast link. In line with the pending nature of Verizon Wireless transaction, we will not be taking questions after our prepared remarks today. Sharilyn Gasaway, Alltel Executive Vice President and Chief Financial Officer we'll cover highlights from the second quarter. With that, here's Sharilyn.
Sharilyn Gasaway - Executive Vice President and Chief Financial Officer
Thank you, Holly and good morning everyone. Today, I will cover our operational and financial highlights from the second quarter and as Holly mentioned we will end the call after our prepared remarks.
We had another outstanding quarter and I'm very proud of the entire Alltel team. Thank you all for your continued dedication and focus. In the second quarter of 2008, we generated consolidated EBITDA of $898 million, which was up 15% year-over-year for a 41.3% service margin, a 160 basis points increase from a year ago.
For the quarter, Alltel generated $2.2 billion of service revenue, an increase of $203 million or 10% year-over-year.
Retail revenue grew 11% year-over-year and was primarily driven by continued increases in data revenue, which increased 59% year-over-year and by our continued focus on quality customer adds.
Wireless gross customer additions were 1,082,000 for the quarter, up 37% year-over-year. Post-pay net additions were 217,000, up 20% year-over-year; prepay net adds were $99,000 and reseller net adds were 4,000 during the quarter. Our total net adds for the quarter were 320,000, up 76% year-over-year.
Our post-pay churn was 1.21%, up 5 basis points year-over-year. And our total churn was 1.92%, up 25 basis points year-over-year.
The post-pay and total churn were negatively impacted by the analog shutdown that began in certain markets in the first quarter. The shutdown continued in the second quarter and we expect some negative impacted churn for the next few quarters until the shutdown is completed.
Total churn was also negatively impacted by the reseller disconnects being included in this quarter's calculation. For the quarter, average revenue per unit was $54.42 and retail revenue per unit was $51.57, both up 1% year-over-year.
Data revenue per customer was $8.18 in the quarter, an increase of 45% year-over-year and up 9% sequentially.
Turning to our wireless wholesale roaming business, revenues in the second quarter increased 17% year-over-year, primarily due to the growth in data roaming revenue. Total cash cost per customer on a GAAP basis were $32.62 in the second quarter, down 1% year-over-year and flat sequentially.
Beginning in the first quarter, we began reporting early termination fees on a net basis. This perspective change resulted in a decrease of approximately $25 million in retail revenues and a corresponding decrease in cost of services during the second quarter.
Capital expenditures totaled $235 million for the quarter and cash interest payments were $402 million for the quarter. As we mentioned on our previous earnings calls, during the fourth quarter of 2007 and the first quarter of 2008, we swapped to a fixed basis a total of $9.5 billion of our floating rate exposure at an average... at a total weighted average interest rate of 6.5%.
Now turning to our balance sheet at June 30. We ended the quarter with $1.05 billion of cash and short-term investments. At June30, our long-term debt balance was $23.5 billion. Our ratio of total net debt to consolidated EBITDA was 6.7 times for the 12 months ended June 30, 2008.
Lastly, as you know by now on June 5th, we announced plans to be acquired by Verizon Wireless. The transaction is currently expected to close by the end of the year, subject to obtaining the required regulatory approval. As always, we appreciate your support and your investment in Alltel.
With that, I'd like to thank you for joining us this morning. If you have any questions, please contact our Investor Relations department at 501-905-8991. Tim Hicks, our Assistant Treasurer will be available at that number.
Thank you and have a great day.
This concludes today's conference call. You may now disconnect.
Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.
THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.
If you have any additional questions about our online transcripts, please contact us at: email@example.com. Thank you!