Shenandoah Telecommunications Co (SHEN, Financial) announced its third quarter 2023 financial results on November 3, 2023. The company reported a consolidated revenue growth of 7.3% to $71.8 million compared to the third quarter of 2022. The growth was primarily driven by the Broadband segment, which saw an 8.1% increase in revenue.
Financial Highlights
SHEN's net income for Q3 2023 was $1.6 million, a significant turnaround from the net loss of $2.7 million reported in Q3 2022. The company's Glo Fiber Markets added approximately 4,500 subscribers, marking a 13.9% increase from Q3 2022 and a 12.5% increase from Q2 2023. Glo Fiber Markets' revenue grew by a remarkable 90.5% to $9.3 million, contributing significantly to the overall financial performance.
Adjusted EBITDA for the quarter grew 20.5% to $22.9 million compared to the same period in 2022. The Broadband segment's Adjusted EBITDA also saw a growth of 19.4% to $26.6 million over the same period.
Company's Performance Analysis
SHEN's Broadband segment reported a revenue growth of 8.1% to $67.4 million compared to $62.4 million in Q3 2022. This growth was primarily driven by a 90.5% increase in Residential & Small and Medium Business (SMB) - Glo Fiber Markets revenue and a 9.4% increase in Commercial Fiber revenue.
On the other hand, the Tower segment reported a consistent revenue for Q3 2023 compared to the same period in 2022. However, the Tower Adjusted EBITDA in Q3 2023 decreased 12.8% to $2.6 million, primarily due to higher maintenance expenses.
Future Outlook
As of September 30, 2023, SHEN's cash and cash equivalents totaled $36.0 million and the availability under its delayed draw term loans and revolving line of credit was $250.0 million, for total available liquidity of $286.0 million. The company expects to draw the remaining $150.0 million in delayed draw term loans by December 31, 2023.
SHEN's President and CEO, Christopher E. French, expressed satisfaction with the continued growth for Glo Fiber Markets and the solid financial results for the quarter. He stated,
This progress, along with our previously announced planned acquisition of Horizon Telcom, position us well to deliver long term value to our shareholders."
Explore the complete 8-K earnings release (here) from Shenandoah Telecommunications Co for further details.
