Q1 2024 Shenandoah Telecommunications Co Earnings Call Transcript
Key Points
- Shenandoah Telecommunications Co successfully closed the sale of its tower assets for $310 million, a significant valuation at approximately 31 times the 2023 Tower segment adjusted EBITDA.
- The company completed the acquisition of Horizon Telecom, enhancing its commercial fiber business and expanding its Glo Fiber network into new markets in Ohio.
- Shenandoah Telecommunications Co reported strong interest from lenders and financial sponsors during its financing processes, securing $356 million in new financings to support growth.
- The company added 5,000 new Glo Fiber customers in the quarter, setting a new record and demonstrating strong market demand for its services.
- Shenandoah Telecommunications Co has a robust pipeline for expansion, with plans to grow its Glo Fiber expansion market to 600,000 by the end of 2026.
- Commercial revenue declined by 19.8% due to the expected churn of T-Mobile revenue, reflecting the decommissioning of the former Sprint network.
- The company faces challenges in accelerating the installation pace for Horizon's contracted sales backlog, which has been slower than expected.
- Adjusted EBITDA remained flat compared to the first quarter of 2023, as revenue growth was offset by higher expenses associated with expanding the Glo Fiber business and other factors.
- Broadband data churn in cable markets increased to 1.67%, driven by competition from cable and fiber overbuilders in some markets.
- Despite the strategic acquisitions and expansions, the company anticipates temporary slowdowns in revenue and earnings growth due to the T-Mobile revenue decline, with recovery expected in 2025.
Good morning, everyone, and welcome to Shenandoah Telecommunications first-quarter 2024 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Mr. Kirk Andrews, Director of Financial Planning and Analysis for Shentel.
Good morning, and thank you for joining us. The purpose of today's call is to review Shentel's results for the first quarter of 2024. Our results were announced in a press release distributed this morning, and the presentation we'll be reviewing is included on the Investor page at our website www.shentel.com.
Please note that an audio replay of this call will be made available later today. The details are set forth in the press release announcing this call.
With us on the call today are Christopher French, President and Chief Executive Officer; Ed McKay, Executive Vice President and Chief Operating
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