Shentel reported that second-quarter carrier access and fiber revenue for the quarter was $10.2 million, a 5.3 percent increase from $9.6 million for the same quarter last year, due to growth in new fiber contracts driven mainly by the cable segment.
The cable segment signed $3.2 million in new fiber sales, surpassing the wireline segment which only signed $2.8 million. This is a reversal of the trend the telco reported in 2014 where the cable segment reported less than $1 million in fiber sales, while the wireline had $2.8 million.
"We signed $6 million of new contracts in the second quarter and $10.8 million year-to-date," said Earle MacKenzie, EVP and COO of Shentel during the earnings call, according to a Seeking Alpha transcript. "We added a new director of fiber sales in the second quarter and are adding some additional fiber sales people in the cable areas."
As of the end of the quarter, the service provider had a total of 1,590 fiber route miles and 102,821 total fiber miles, an increase over the 1,452 and 84,600 it had in the same period a year ago.
Wireline segment operating data was $4 million, up from $3.8 million in the second quarter 2014.
Per the industry-wide trend, Shentel ended the quarter with a total of 21,615 voice access lines, down year-over-year from 21,842 in the second quarter of 2014. Carrier access and fiber revenue for the quarter was $10.2 million, a 5.3 percent increase from $9.6 million for the same quarter last year, due to growth in new fiber contracts.
It also saw a slight increase of 224 new DSL subscribers to end the quarter with a total of 12,856 customers, helping it increase broadband penetration in LEC area to 59.5 percent. However, the wireline segment lost 869 video customers.
Second quarter 2015 company net income was $10.5 million up year-over-year from $8.6 million in the second quarter of 2014 due to continued growth in the Wireless and Cable segments. Operating income was $18.8 million, up 18.7 percent from the same period a year ago.
Shares of Shentel were listed at $34.81, up 43 cents, or 1.25 percent, in Monday afternoon trading on the Nasdaq stock exchange.
For more:
- see the earnings release
- see the Seeking Alpha earnings transcript (sub. req.)
Special report: Wireline telecom earnings in the second quarter of 2015
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