Shentel (Nasdaq: SHEN) may be placing more emphasis on growing its cable and wireless segments, but the telco reported that Q2 2013 wireline fiber sales rose 7.4 percent year-over-year to $5.6 million.
The rural telco's wireline operating revenue rose 9.7 percent to $3.7 million, up from $3.3 million in the same period a year ago. Likewise, the wireline segment's adjusted OIBDA was $6.3 million, an increase of $0.6 million from Q2 2012.
As expected, the telco reported that access lines declined to 22,419, compared to 22,670 on June 30, 2012. It also saw a slight gain in its broadband unit as DSL subscribers rose slightly to 12,600.
Driven by growth in its wireless and cable segments, Shentel's Q2 net income grew 41 percent to $7.8 million, up from $5.7 million in Q2 2012, and revenue grew 8.5 percent year-over-year to $77.5 million.
Cable service revenue rose to $1.2 million due to what it says was 2.7 percent growth in average revenue generating units (RGUs), video price increases driven by rising programming costs, and customers selecting higher priced digital TV services and higher speed data access packages. At the end of Q2, Shentel had a total of 116,115 cable RGUs, up 3.2 percent year-over-year.
One of the goals that Shentel set for the rest of 2013 was to increase wireline and cable fiber lease revenues.
Shares of Shentel were listed at $19.48, down 4 cents, or 0.20 percent, in Friday morning trading on the Nasdaq stock exchange.
For more:
- see the earnings release
Special report: Wireline telecom earnings in the second quarter of 2013
Related articles:
Shentel revenue up 10.4 percent to $76 million on stable wireline, cable results
Shentel's wireline revenues rise 12% on fiber service sales growth
Shenandoah Telecom to build Page County, Va.'s middle mile network
Shenandoah Telecommunications to buy North River Telephone Cooperative