The following is a summary of the Shenandoah Telecommunications Company (SHEN) Q4 2023 Earnings Call Transcript:
Financial Performance:
Shenandoah reported total revenue growth of 8% and adjusted EBITDA growth of 19% for 2023, primarily driven by Glo Fiber subscriber growth.
Broadband revenue and adjusted EBITDA rose by 8.1% and 17.6% respectively, reaching $269.3 million and $105.8 million.
Consolidated revenue and adjusted EBITDA grew by 7.5% and 19.3%, reaching $287.4 million and $90.6 million respectively.
Company's liquidity as of year-end stood at $239 million, including $139 million cash and $100 million available line of credit.
Revenue decline is expected in 2024 due to an anticipated $7 million drop in broadband T-Mobile revenue.
The company is considering entering the asset securitization market to raise additional growth capital.
Business Progress:
Subscribers for Glo Fiber increased by over 71%, reaching over 41,700 subscribers in 2023.
The company plans to accelerate growth of Glo Fiber construction and sales in the following year.
The Horizon acquisition, due to close in Q2, will lead to increased capital spending and an addition of approximately 100,000 homes in the Ohio markets in the next three years.
Broadband data average revenue per user increased by 4% year-over-year, reaching $76.
Shenandoah Telecommunications plans to invest around $65 million over the next five years on DOCSIS upgrades, allocating around $10 million for the current year.
In 2024, the company aims to invest around $190 million to expand Glo Fiber to 100,000 new passings, and about $41 million, including $10 million for DOCSIS upgrades, in its incumbent cable business.
More details: Shenandoah Telecommunications Co IR
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