Alaska Communications 4Q loss narrows, revenue falls

Alaska Communications 4Q loss narrows

ANCHORAGE, Alaska — Local phone company Alaska Communications Systems Group Inc. on Thursday reported a smaller loss for the fourth quarter even as revenue fell, because the 2008 quarter’s loss was inflated by a hefty charge to write down the value of assets.

The company said business weakened in the fourth quarter as Apple Inc.’s iPhone lured away its cell phone customers. Wireless subscribers fell by 2,361 in the quarter to 137,365 and the company also had to offer higher discounts to sell its phones.

Traditional phone customers continued to disconnect, with total access lines down 2.3 percent to 185,500. DSL also lost ground, down 300 subscribers to 46,600.

Alaska Communications lost $7 million, or 16 cents per share, in the quarter. That compares with a loss of $19.1 million, or 44 cents per share, in the prior year’s quarter. The 2008 period includes a $29.6 million goodwill impairment charge.

Revenue fell 4.4 percent to $83.1 million from $86.9 million.

Results fell below the forecasts of analysts polled by Thomson Reuters, who expected Alaska Communications to lose 3 cents per share on revenue of $84.7 million.

For the year, the Anchorage, Alaska company earned $34.1 million, or 77 cents per share, compared with a loss of $10.8 million, or 25 cents per share, in 2008. Revenue fell to $346.5 million from $351.1 million.

Shares of Alaska Communications rose 6 cents to $7.45 on Thursday before the release of the earnings report. In aftermarket trading, they shed 20 cents, or 2.7 percent, to $7.25.