Shentel (Nasdaq: SHEN) continued to see strong wireline fiber lease sales as affiliate and non-affiliate revenue rose collectively year-over-year to $21.8 million, up from $21.2 million in the fourth quarter of 2012.
Affiliate fiber lease revenue was $13.7 million, up slightly from $13.2 million in the same period a year ago, while non-affiliate revenue was $8 million. The service provider also reported that new external fiber lease contracts were $18.9 million, an increase over the $15.9 million reported last year.
However, fiber lease growth wasn't enough to slow overall wireline segment revenues, which declined to $2.4 million, down from $3.3 million in the fourth quarter of 2012. Likewise, adjusted OIBDA for the wireline segment decreased 16 percent to $5.1 million vs. $6.1 million in the fourth quarter of 2012.
Per the wireline industry-wide trend, Shentel lost 237 access lines, while DSL broadband lines remained flat at 12,600.
Overall company revenue rose 4 percent to $78 million, up year-over-year from $75 million due to growth in wireless subscribers and an increase in cable segment revenues due to the addition of new RGU (revenue generating unit) counts. For the year 2013, total revenues were $308.9 million, up 7 percent over the $288.1 million the telco reported for 2012.
"We are pleased to have continued to achieve consolidated net income growth, adding customers and increasing average revenue per customer in both our wireless and our cable segments," said Christopher E. French, president and CEO of Shentel, in the earnings release.
Shares of Shentel were listed $26.29, down 23 cents or 0.87 percent, in Friday morning trading on the Nasdaq stock exchange.
- see the earnings release
Earnings summary: Wireline telecom earnings in the fourth quarter of 2013
Shentel's wireline revenue remains flat at $3.3M, but fiber leasing grows 13 percent
Shentel realigns management team around key operational segments
Shentel gets into the 100G network game
Shentel's wireline fiber sales rise 7.4 percent to $5.6 million