Shentel reports solid 3Q earnings

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EDINBURG -- Shentel reported solid earnings in the third quarter while continuing to invest in upgrades to its Sprint-branded wireless network and newly acquired cable TV operations.

The company's net income for the July-September period was $6.3 million on revenue of $40.1 million, compared to $7.4 million and $37.4 million, respectively, for the same three months last year.

The increase in revenue is primarily a result of a 7 percent jump in PCS subscribers and $2.6 million in new revenue from cable subscribers in Alleghany County and parts of West Virginia from the acquisition of Rapid Communications last year.

That purchase resulted in an after-tax loss of $800,000 for the third quarter, and Shentel's investments in upgrading its wireless and cable networks pushed operating expenses to $29.5 million.

Through Sept. 30, Shentel had upgraded 27 percent of homes passed in its new cable territories, and an additional 13 percent have been upgraded since the end of the quarter.

The company also added seven cell towers during the period, along with 28 EVDO-enabled sites, bringing Sprint 3G coverage to 94 percent of the population covered by its PCS network.

"Development of and growth in these operations is an important part of our plans for long-term growth in earnings," President and CEO Christopher E. French said in a statement.

-- Daily Staff Report