4G Upgrade On Schedule; 81% of Cell Sites Upgraded Revenues Increase 8.5% Driven By Wireless and Cable Customer Growth With Increased Monthly Revenue Per Customer
EDINBURG, Va., Aug. 2, 2013 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company ("Shentel") (Nasdaq:SHEN) announces financial and operating results for the three months ended June 30, 2013.
Consolidated Second Quarter ResultsFor the quarter ended June 30, 2013, net income from continuing operations was $7.8 million compared to $5.7 million in the second quarter of 2012, reflecting growth in subscriber counts and revenue per subscriber in both the Wireless and Cable segments. Operating income was $14.5 million, up 30% from the same quarter last year. Adjusted OIBDA (Operating Income Before Depreciation and Amortization) increased to $31.3 million in the second quarter of 2013 from $28.5 million in the second quarter of 2012. Total revenues were $77.5 million, an increase of 8.5% compared to $71.4 million for the 2012 second quarter. Revenues increased as a result of wireless subscriber growth and increased fees for data usage on smartphones. Additionally, cable segment revenues increased related to an increase in RGU (revenue generating unit) counts, and higher monthly revenue per customer. Overall operating expenses increased 4.5%, to $63.0 million in the second quarter of 2013. Operating expenses in the Wireless segment increased $2.9 million, driven by higher rates charged by Sprint related to prepaid customer acquisition and support and the Company's upgrade activities associated with the ongoing Sprint Network Vision project. President and CEO Christopher E. French commented, "We achieved solid results in the second quarter, including 41% growth in consolidated net income, adding customers and increasing average revenue per customer in both our wireless and our cable segments. The cornerstone of our performance is Shentel's ability to offer attractive voice, video and data solutions, coupled with our focus on continuously identifying ways to improve customer service. Additionally, our corporate branding and advertising initiative launched in 2012 has helped introduce Shentel to new customers while also highlighting the history of our Company and our vision for the future. Shentel has invested significant capital to improve our cable technology and the wireless division will complete an extensive 4G upgrade as part of Sprint's Network Vision project by the end of this year, which will reduce capital expenditures going forward."