Shentel revenue, costs up
Shenandoah Telecommunications reported revenue increases from this same time last year in its third quarter earnings report published Nov. 9. A significant portion of the increase was due to an acquisition of nTelos, completed on May 6.
The year-to-date total revenues reported in the third quarter were $156.8 million, an 84.1 percent increase over 2015’s third quarter at $85.2 million.
Overall, Shentel posted a net loss of $7.6 million, compared to an income of $8 million in quarter three of 2015.
Adele Skolits is Shentel’s chief financial officer and vice president of finance.
“Growing pains is a great way to describe it,” she said. “We got a very good deal when buying nTelos. We knew in doing this that while we got a good price on it, it was essentially a fixer upper. … We expected that it would be a bumpy ride for the first 18 months or so. We’ve made substantial progress.”
Skolits also said that she anticipates good results from the acquisition once the initial shock to the company’s financial system has subsided.
“We have essentially doubled the size of this entity throughout this acquisition,” she said. “While we’re incurring some one-time expenses, we’re confident that we’ll earn a reasonable if not outsized return.”
Operating expenses also increased due to the nTelos acquisition, at $160.8 in 2016’s third quarter compared to $70.1 million for the same period last year.
Shentel’s wireless segment increased 132.3 percent, the result of the company’s acquisition of nTelos’ 580,000 wireless customers.
“Prior to this acquisition, wireless was about 60 percent or more of our revenues,” Skolits said. “It’s now more like 80 percent of our revenues.”
Contact staff writer Nathan Budryk at 540-465-5137 ext. 155, or email@example.com