Shenandoah Telecommunications reported that first-quarter 2013 revenues jumped 10.4 percent to $76 million with increases in both wireline DSL subscribers and cable RGU (revenue generating unit) counts.
It also reported gains in both net income from continuing operations and net income, which rose 90 percent to $8.4 million and 87 percent to $8.4 million over Q1 2012.
In the wireline segment, it added 193 new DSL customers, ending the quarter with a total of 12,665 subscribers. Meanwhile, the telco lost 604 access lines to end the quarter with a total of 22,234 lines. Adjusted OIBDA for the wireline segment was $6 million, a decrease of $0.1 million from the comparable 2012 period.
Albeit on a much smaller scale, Shentel is also laying a foundation for higher broadband speeds in its traditional wireline business by replacing existing copper with fiber to deliver fiber to the home (FTTH) services.
During the first quarter, it announced that it would equip Rural Retreat in Wythe County, Va., with FTTH beginning this fall. Earlier, it said it allocated $9 million to bring FTTH service to McDowell County, West Va.
The cable segment reported that operating revenue increased $1.3 million due to 2.3 percent growth in average RGUs and a 5.5 percent increase in video prices. At the end of the quarter, it had a total of 116,576 RGUs, up 2.3 percent over the same period a year ago.
Total RGUS were 116,576 at the end of Q1 2013, an increase of 2.3 percent from March 31, 2012.
"Our first quarter results demonstrated significant improvement over the prior year period," said President and CEO Christopher E. French, in the earnings release. "Revenues and subscriber counts are increasing, while growth in operating expenses has slowed in recent periods."
- see the earnings release
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