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SHEN's Glo Fiber Expands Footprint with Next-Gen Fiber Optic Internet
ShentelShentel(US:SHEN) ZACKSยท2025-07-03 14:06

Core Insights - Shenandoah Telecommunications (SHEN) subsidiary Glo Fiber has launched a 100% fiber-optic broadband service in select neighborhoods of Hillsboro, OH, aiming to enhance digital infrastructure in the region [1] - Glo Fiber currently serves approximately 363,000 homes and businesses and plans to expand to 550,000 by the end of 2026, with a significant revenue increase of 27% year over year to $87.9 million [5][8] - The company utilizes advanced XGS-PON technology to deliver Internet speeds of up to 5 Gbps, providing reliable and symmetrical broadband services [2] Company Performance - In the first quarter of 2025, Glo Fiber added 5,400 subscribers and 16,600 new passings, resulting in a 52% year-over-year revenue growth in Glo Fiber Expansion Markets [5] - Adjusted EBITDA increased by 43% to $27.6 million, supported by strong performance in established markets [5] - The company is optimistic about free cash flow from mature markets, which now have margins exceeding 40% [5] Market Expansion - Glo Fiber's construction efforts are set to continue through early 2026, with over 3,000 homes and businesses in Hillsboro gaining access to high-speed Internet [1] - The company aims to reach 440,000 homes by the end of 2025 and 550,000 by the end of 2026 [6] - Glo Fiber's services include Whole Home Wi-Fi, video streaming, and digital phone services, enhancing customer experience with transparent pricing and local support [3][4] Competitive Landscape - Despite the positive growth, Glo Fiber faces challenges such as intense spending on buildouts and competition in certain markets [6] - Management is implementing strategies like selective promotions and inventory stockpiling to mitigate potential impacts from these challenges [6]