Alaska Communications' (ALSK) Q2 revenue rose 8.6% Y/Y and soundly beat estimates, as higher roaming payments fueled a 15.8% Y/Y increase in wireless revenue. Business/wholesale revenue +8.7%, consumer +7.1%, access/CETC -3%.
Q2 adjusted EBITDA +32.8% Y/Y to $34M, free cash flow was $15.2M vs. $2.8M a year ago.
Wireless subs, business broadband subs, and consumer broadband subs all rose modestly Q/Q. Wireless ARPU +1% Q/Q, business broadband ARPU +4.2%, consumer broadband ARPU +5.9%.
2013 guidance is for revenue of $340M-$350M (below a $350.9M consensus), capex of $50M, and free cash flow of $20M-$25M.
Net debt fell by $65M following the closing of the Alaska Wireless Network transaction with General Communications, but still amounts to $444.9M.
SA contributor Harry Long has been quite bullish on Alaska on account of the General Communications deal.
Q2 results, PR