Shentel's wireline revenues rise 12% on fiber service sales growth
Shenandoah Telecommunications Company (Shentel) (Nasdaq: SHEN) reported on Thursday that despite ongoing access line losses, wireline revenues were up 12 percent, or $1.1 million, due to strong fiber services sales.
Likewise, the telco reported that the wireline segment's Q4 adjusted OIBDA was $6.1 million, up $0.6 million from Q4 2011.
On the subscriber side, Shentel added 216 new DSL customers, up 1.7 percent from the same period a year ago. Broadband penetration in its LEC area is at 56 percent.
As expected, Shentel reported that access lines declined to 22,297, compared to 23,083 at Dec. 31, 2011.
Fiber sales represented a major portion of Shentel's wireline revenue. The company reported $21.2 million in fiber lease revenue, a figure that consisted of $8 million in non-affiliate and $13.2 million in affiliate revenue. Meanwhile, new external fiber lease contract sales were $15.9 million.
Overall company revenue rose 12.8 percent year-over-year to $75 million, while net income was $4.9 million.
At the close of trading on Friday, shares of Shentel were listed at $13.89, down 52 cents, on the Nasdaq stock exchange.
- see the earnings release
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