Laying Fiber Shentel construction team running reels of new fiber line. EDINBURG, Va., Sept. 23, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (Nasdaq: SHEN), a leading provider of broadband services, recently extended high-speed, gigabit internet service to approximately 3,300 additional homes in Campbell County, Virginia and plans to add about 200 more by the end of the month. This $20 million construction project is partly funded by the Commonwealth of Virginia’s nationally ...

Company Overview - Shenandoah has a long history, founded in 1902 as a local telephone company in the Shenandoah Valley, Virginia [2] - The company has transformed from a local telephone provider to a broadband company, initially as a cable company and now focusing on fiber-to-the-home services [2] Strategic Focus - The current strategy emphasizes the fiber build initiative, which is a key component of the company's future growth and service delivery [1][2]

Summary of Shenandoah Telecommunications (SHEN) 2025 Conference Call Company Overview - Shenandoah Telecommunications Company, founded in 1902, has transformed from a telephone company to a broadband provider, focusing on fiber-to-the-home services [4][3] - Projected revenue for the year is over $350 million, with a significant regional fiber optic network spanning 18,000 route-miles from Chicago to Washington, D.C. [4][5] - The business split is approximately 75% residential and 25% commercial, with a focus on expanding fiber services [4][5] Fiber Build Strategy - The company has passed about 380,000 homes and businesses with its Glo Fiber service and aims to reach between 500,000 and 550,000 by the end of 2026 [5][6] - Targeting areas where they are the first fiber provider, with a focus on achieving a 37% terminal penetration rate and a 15%+ unlevered IRR [8][6] - The cost to pass is approximately $1,000 to $1,400 per home, with a current average of 80 to 90 homes passed per route-mile [48][49] Competitive Landscape - Competes primarily against Comcast (two-thirds of markets) and a combination of Charter and Cox [11] - Observed aggressive promotional pricing from competitors, but no significant impact on sales or churn due to lack of mobile offerings [12][14] - The company has a low churn rate of about 1% and a net promoter score of 69, indicating strong customer satisfaction [39][40] Recent Acquisitions - Acquired Horizon Telecom in Ohio, doubling the size of the commercial fiber business and enhancing regional network capabilities [18][19] - The acquisition strategy includes integrating smaller players within the region, with successful integration processes already in place [27][28] Financial Strategy and Capital Allocation - Upsized credit facility to $675 million and issued $80 million in preferred equity to support growth [20] - Plans to refinance the credit facility, potentially lowering the cost of debt by about 100 basis points [20] - Expected to reach free cash flow positive status by 2027, with a focus on returning capital to shareholders through dividends or share buybacks [83][88] Government Funding and Market Dynamics - Awarded over $100 million in grant funds for building to unserved areas, primarily through the American Rescue Plan Act [59] - Limited opportunities in BEAD funding due to low density in targeted areas, leading to a focus on Glo Fiber markets instead [60][61] - The permitting process remains a challenge, impacting the pace of fiber builds [54][66] Customer Service and Market Approach - Emphasizes local customer service with representatives from the markets served, leading to high customer satisfaction and low abandonment rates [35][37] - Engages in community marketing and direct sales efforts, with a significant portion of sales coming from door-to-door efforts [34] Future Outlook - The company sees potential for growth in smaller markets, with limited competition from larger providers [43] - Plans to continue focusing on high ARPU segments, with over 50% of new customers opting for gigabit plans [58] - Anticipates further consolidation in the telecom industry, positioning itself as a potential consolidator of smaller players [27][24]

Core Insights - Shenandoah Telecommunications Company (Shentel) is upgrading its network in Radford, Virginia, to provide 100% fiber-to-the-home internet service with speeds up to 5 Gbps [1][4] - The upgrade aims to enhance broadband service reliability, availability, and speed for both residential and business customers [2][4] - Shentel's fiber network spans 17,700 miles, enabling high-speed, low-latency internet and additional services like phone, video, and Whole-Home Wi-Fi [3][6] Company Overview - Shentel provides broadband services through advanced fiber optic and cable networks across eight states in the eastern United States [6] - The company offers a variety of services, including broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [6] Customer Benefits - Customers will experience symmetrical multi-gig internet speeds, facilitating fast downloads, uploads, and reliable online activities [4][9] - Current customers can upgrade to the new fiber network at no additional cost as construction is completed in their area [4] - Shentel emphasizes local customer service with real-time support, avoiding third-party call centers [9]

Core Viewpoint - Shenandoah Telecommunications Company (Shentel) will present at the Bank of America 2025 Media, Communications, & Entertainment Conference on September 3, 2025, at 9:40 AM E.T. [1] Company Overview - Shenandoah Telecommunications Company provides broadband services through high-speed fiber optic and cable networks to residential and commercial customers across eight contiguous states in the eastern United States [2] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [2] - Shentel operates an extensive regional network with over 17,700 route miles of fiber [2]

Core Viewpoint - Shenandoah Telecommunications Company has appointed Angela M. Olsen as Vice President-Legal and General Counsel, bringing over 25 years of legal experience to the company [1][2][3] Company Overview - Shenandoah Telecommunications Company provides broadband services through high-speed fiber optic and cable networks to residential and commercial customers across eight contiguous states in the eastern United States [4] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [4] - The company operates an extensive regional network with over 17,700 route miles of fiber [4] Leadership and Experience - Angela M. Olsen has previously held significant legal positions, including General Counsel and Corporate Secretary at AquaBounty Technologies, and Senior Advisor and Associate General Counsel at DuPont [2] - Olsen's background includes experience as a trial attorney at the US Department of Justice and in private practice at prominent law firms [2] - The CEO of Shentel, Christopher French, expressed confidence in Olsen's capabilities, highlighting her deep understanding of corporate law and her potential contribution to the company's growth [3]

Core Points - Shenandoah Telecommunications Company (Shentel) has received the 2025 CableFax Top Ops Award for Work Culture, recognizing its commitment to improving employee lives and fostering a connected work environment [1][6] - The company emphasizes core values such as teamwork, integrity, communication, agility, cooperation, mutual trust, and respect, which are integral to its success [2] - Shentel's community engagement initiatives, including the Shentel Cares program, encourage employees to support local charities and make a meaningful impact [2][4] - The company has been recognized for its investment in employee development through various support initiatives, including educational assistance and leadership training [5] - This is the second consecutive year Shentel has won a CableFax Top Ops Award, having previously been recognized in 2024 for its Glo Fiber brand as Fiber Provider of the Year [6] Company Overview - Shenandoah Telecommunications Company provides broadband services through advanced fiber optic and cable networks to residential and commercial customers across eight contiguous states in the eastern United States [7] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services, supported by an extensive regional network of over 17,700 route miles of fiber [7]

分组1 - Shenandoah Telecommunications reported a quarterly loss of $0.19 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.20, but worse than a loss of $0.08 per share a year ago [1][2] - The company posted revenues of $88.57 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.16%, and showing an increase from $85.8 million year-over-year [3] - The stock has gained approximately 17.4% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [4] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $92.59 million, and for the current fiscal year, it is -$0.66 on revenues of $364.47 million [8] - The Zacks Industry Rank indicates that the Diversified Communication Services sector is in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [9]

Financial Data and Key Metrics Changes - Revenue grew 3.2% to $88.6 million, driven by strong Glo Fiber market revenue growth of $5.7 million or 40.5% due to an increase in subscribers [11][12] - Adjusted EBITDA increased by $5.1 million or 21.9% to $28.4 million, with adjusted EBITDA margins rising from 27% in Q2 2024 to 32% in Q2 2025 [13] - The company expects 2025 revenues to be between $352 million and $357 million, with adjusted EBITDA projected to be between $113 million and $118 million [13] Business Line Data and Key Metrics Changes - Glo Fiber added 5,700 new subscribers and over 16,000 new passings, with total Glo Fiber revenue generating units reaching 90,000, up 40% year over year [8][17] - The commercial fiber business recorded over $200,000 in monthly recurring revenue sales bookings, indicating future growth potential [9][12] - Incumbent broadband market revenue declined due to a 15% drop in video RGUs as customers switched to streaming services [11] Market Data and Key Metrics Changes - Glo Fiber markets saw broadband data penetration climb to 20%, up from approximately 18% a year ago, with monthly broadband data churn improving to 1.15% [18][19] - The total broadband data customer base in incumbent markets slightly increased year over year, with a total of 112,000 customers [20] - The commercial fiber business achieved a record in new contracts, totaling over $203,000 in incremental monthly revenue, up 32% year over year [22] Company Strategy and Development Direction - The company is executing a "Fiber First" strategy, transitioning from a mature cable and telephone operator to a rapidly growing fiber-first business [7][10] - The management team is focused on expanding Glo Fiber and enhancing customer service to maintain competitive advantages over larger cable providers [28] - The company plans to accelerate capital expenditures in 2025 due to successful construction of government grant projects, which will enhance future revenue potential [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong subscriber additions and the successful execution of the fiber expansion strategy [8][24] - The management team acknowledged competitive pressures but emphasized their advantages in speed and customer service [28] - The company aims to provide more visibility and transparency to shareholders by offering annual guidance [31] Other Important Information - The company closed a small tuck-in acquisition in early July, adding 1,500 passings and approximately 700 customers for $5 million [14][15] - Liquidity was reported at $260 million, with $29 million in cash and $143 million in available revolver capacity [14] Q&A Session Summary Question: Competitive pressures in Glo Fiber expansion - Management noted that while some cable providers are changing rate plans, they believe their speed advantage and local customer service provide a competitive edge [28] Question: CapEx acceleration decision - The decision to accelerate CapEx was driven by the construction team's success in building government grant projects faster than expected [29] Question: Impact of CapEx on future revenue - Management indicated that pulling construction forward would help subscriber growth and revenue in 2026 due to increased passings in government-subsidized areas [30] Question: Reason for mid-year guidance - The company aimed to enhance visibility and transparency for shareholders by providing annual guidance [31]

Core Viewpoint - Shenandoah Telecommunications Company has appointed Edward H. McKay as the new President and CEO, effective September 1, 2025, while Christopher E. French transitions to Executive Chairman of the Board [1][3]. Group 1: Leadership Transition - Edward H. McKay, currently the Executive Vice President and COO, will take over as President and CEO [2]. - Christopher E. French will remain involved in the company's strategy as Executive Chairman [1][3]. - The Board of Directors unanimously supported McKay's appointment, highlighting his experience and perspective for managing growth [3]. Group 2: Company Background - Shenandoah Telecommunications provides broadband services through advanced fiber optic and cable networks across eight states in the eastern United States [4]. - The company offers a range of services including broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [4]. - Shenandoah Telecommunications has an extensive regional network with over 17,700 route miles of fiber [4].