Q2 2025 Shenandoah Telecommunications Co Earnings Call Transcript
Key Points
- Shenandoah Telecommunications Co (SHEN) reported a 3.2% increase in revenue to $88.6 million, driven by strong growth in Glo fiber markets.
- Glo fiber revenues grew by 40.5% year-over-year, reaching $19.8 million, indicating robust subscriber growth.
- The company added 5,700 new Glo fiber subscribers and over 16,000 new Glo fiber passings in the second quarter.
- Adjusted EBITDA increased by 21.9% to $28.4 million, with margins improving from 27% to 32% year-over-year.
- The company successfully executed a new agreement with a national wireless carrier, securing long-term revenue commitments and extending circuit maturities to 2031.
- Revenue declines were noted in incumbent broadband markets and commercial fiber revenue, with decreases of $1.4 million and $1.2 million respectively.
- The incumbent broadband market experienced a 15% decline in video RGUs as customers switched to streaming services.
- Commercial fiber revenue was impacted by $900,000 in early termination fees and $800,000 in non-cash deferred revenue adjustments.
- Overall broadband data penetration declined to 46% due to recently constructed government-subsidized passings.
- Capital expenditures are expected to be slightly higher than previous guidance due to accelerated incumbent broadband grant projects and network upgrades.
Good afternoon, everyone. Welcome to Shenandoah Telecommunications Second Quarter 2025 Earnings Conference Call. (Operator Instructions)
Today's conference call is being recorded. At this time, I would like to turn the conference over to Mr. Lucas Bender, VP of Corporate Finance for Shentel.
Thank you very much, Corey. Good afternoon and thank you for joining us. The purpose of today's call is to review Shentel's results for the 2nd quarter of 2025. Our results were announced in a press release distributed after the market closed this afternoon, and the presentation we will be reviewing is included on the investor page on our investor.shentel.com website.
Please note that an audio replay of this call will be made available later today. The details are set forth in the press release announcing this call.
With us on the call today are Chris French, President and Chief Executive Officer, Ed McKay, Executive Vice President and Chief Operating Officer, and Jim Volk,
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