Shentel's wireline segment operating income drops to $3.8M
Shentel reported that its wireline segment operating income was $3.8 million, down both sequentially and year-over-year from $4.4 million in the first quarter of 2014 and $4 million in the second quarter of 2013 due to expected legacy declines.
The company's traditional access voice lines declined year-over-year from 22,465 in the second quarter of 2013 to end the quarter with a total of 21,842 lines. Wireline segment adjusted OIBDA was $6.5 million, as compared to $7.0 million in the second quarter of 2013.
Broadband penetration in the ILEC area is now at 58.2 percent and it had a total of 5,904 video subscribers. It added 75 broadband subscribers while losing 438 video subscribers.
One bright spot in the wireline segment was its fiber products. During the quarter, fiber lease revenue was $7.9 million, up year-over-year from $7.1 million in the same period a year ago. However, non-affiliate external fiber lease contract revenue was $4.9 million, down from $5.2 million in the second quarter of 2013.
At the end of the quarter, it added 213 fiber miles and three fiber route miles to end the quarter with a total of 85,348 and 1,455 total miles, respectively.
From an overall financial standpoint, total revenues were $81.4 million, up 5.1 percent year-over-year from $77.5 million in the second quarter of 2013. The company attributes the revenue increase to growth in subscribers and revenue per subscriber.
Company net income was also up, rising 9.9 percent to $8.6 million compared to $7.8 million in the second quarter of 2013. Operating income was $15.8 million, up from $14.5 million in the same quarter last year.
"During the second quarter we achieved improved net income largely as a result of revenue and subscriber growth in both the cable and wireless segments," said Christopher E. French, president and CEO of Shentel, in the earnings release. "Our regional efforts to promote our upgraded networks and improved service are gaining traction as demonstrated by increases in average revenue per customer."
Shares of Shentel closed $27.71, down $1.05 or 3.65 percent, at end of Thursday trading on the Nasdaq stock exchange.
- see the earnings release
Special report: Wireline telecom earnings in the second quarter of 2014
Shentel's Q1 fiber lease revenue rose to $8.1M
Shentel's Q4 2013 wireline fiber sales rise to $21.8M
Shentel's wireline revenue remains flat at $3.3M, but fiber leasing grows 13 percent
Shentel realigns management team around key operational segments