Shenandoah Telecommunications Company Delivers Strong Q1 2025 Results
EDINBURG, Va. – Shenandoah Telecommunications Company (“Shentel” or the “Company”) (NASDAQ: SHEN) has reported its financial and operational growth for the first quarter of 2025.
Key Highlights from the First Quarter 2025
Shentel has celebrated remarkable milestones in its Glo Fiber Expansion Markets, with a striking 51% increase in data subscribers compared to the previous year, bringing the total to approximately 71,000 subscribers. Revenue from these markets also witnessed an impressive growth of 52%, reaching $18.4 million.
Total revenue surged by 26.9% from the same quarter in 2024, amounting to $87.9 million. Even after excluding the acquisitions from former Horizon markets, the revenue showed a robust increase of 5%, totaling $72.9 million.
However, the Company reported a net loss from continuing operations of $9.1 million for this quarter, a notable increase compared to a net loss of $4.1 million during Q1 2024. This rise in losses was primarily attributed to heightened depreciation and amortization expenses resulting from the expansion of the Horizon and Glo Fiber networks.
Adjusted EBITDA Growth
Despite the net loss, Shentel achieved an Adjusted EBITDA growth of 43.3%, totaling $27.6 million. When excluding the Horizon markets, Adjusted EBITDA increased by $3.9 million, equating to a growth rate of 20.6%.
“We are pleased with our growth in the first quarter of 2025, executing well in our Glo Fiber Expansion Markets with 5,400 new subscribers, 16,600 new passings, and 52% revenue growth,” said Christopher E. French, President and CEO. He further expressed that Glo Fiber's growth and the enhanced synergy savings from Horizon were pivotal for the robust Adjusted EBITDA growth seen in their legacy markets.
Comparison of Financial Performance: Q1 2025 vs. Q1 2024
Revenue Insights
In this quarter, Shentel experienced a $18.7 million revenue increase, or 26.9%, attributable mainly to the $15.2 million revenues from the recently acquired Horizon markets. Excluding these, the revenue rose by $3.5 million, marking a 5.0% increase fueled by Glo Fiber Expansion Markets Residential and SMB revenue growth of 46.5%.
Operating Cost Developments
The cost of services also saw a $7.0 million increase, or 27.1%, influenced by $7.6 million in costs incurred in the Horizon markets acquisition. Nonetheless, there was a moderate decrease of $0.6 million in costs in the legacy Shentel markets, attributed to reduced programming expenses.
Administrative and Integration Expenses
Shentel's selling, general, and administrative expenses climbed by $3.0 million, or 10.8%, due to $3.2 million in costs from the Horizon markets. Restructuring and integration expenses totaled $0.5 million, remaining consistent with the previous year.
Depreciation and Amortization Effects
Depreciation and amortization expenses surged by $12.0 million, or 68.9%, driven by $9.2 million related to the Horizon transaction's tangible and intangible assets and the extension of the Glo Fiber network.
Infrastructure Expansion
Shentel expanded its infrastructure, with total broadband homes passed increasing by 128,000, reaching approximately 604,000, which included 363,000 Glo Fiber Expansion Market passings and 241,000 in Incumbent Broadband Markets.
Financial Stability and Future Outlook
The Company recorded capital expenditures of $83.2 million in the three months ending March 31, 2025, compared to $70.1 million during the same period last year. The increase is primarily due to investments in the Horizon markets and the Glo Fiber Expansion Markets.
Government Grants and Liquidity
During this quarter, Shentel received $6.9 million in government grant reimbursements, up from $2.7 million in the previous year. By the end of March 2025, Shentel's cash and cash equivalents were $87.5 million, with total available liquidity reaching approximately $334.6 million.
Shentel anticipates that its ongoing efforts in expanding its Glo Fiber network and generating synergy savings will continue to drive growth and improve operational efficiency.
Frequently Asked Questions
What recent results did Shenandoah Telecommunications report?
Shenandoah Telecommunications reported a 26.9% increase in total revenue for Q1 2025, totaling $87.9 million.
What was the Adjusted EBITDA growth?
The Company achieved an Adjusted EBITDA growth of 43.3%, bringing it to $27.6 million for the quarter.
How many new subscribers did Glo Fiber gain?
Glo Fiber gained 5,400 new subscribers during the first quarter of 2025.
What were the capital expenditures for Shentel in Q1 2025?
Shentel's capital expenditures for Q1 2025 were $83.2 million, a rise from $70.1 million in the same period last year.
How much liquidity does Shenandoah Telecommunications have?
As of March 31, 2025, Shentel reported cash and cash equivalents of $87.5 million, leading to a total available liquidity of approximately $334.6 million.
