Shenandoah Telecommunications Company Reports 21.9% Revenue Growth to $328.1 Million for Fiscal Year 2024

Shenandoah Telecommunications Company (Shentel) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $328.1 million, a 21.9% increase from $269.1 million in 2023. The company’s net income surged to $193.8 million, compared to $8.0 million in the previous year, largely driven by income from discontinued operations related to the sale of its tower portfolio. The acquisition of Horizon Acquisition Parent LLC, completed on April 1, 2024, contributed to this growth, adding approximately $30.7 million in revenue from newly acquired markets.

The company experienced notable changes in its revenue streams, particularly in its Glo Fiber expansion markets, which saw a 65% increase in revenue to $57.9 million, up from $35.1 million in 2023. The commercial fiber segment also grew by 59.1%, generating $67.0 million, while the residential and small-medium business (SMB) segment in incumbent broadband markets remained relatively stable with a slight increase of 0.3%. The overall operating expenses rose to $356.6 million, reflecting increased costs associated with the Horizon acquisition and ongoing network expansions.

Operationally, Shentel reported serving approximately 261,000 revenue-generating units (RGUs) as of December 31, 2024, with a notable increase in broadband data RGUs, which grew by 50.9% year-over-year. The company’s fiber network expanded to approximately 16,830 route miles, supporting its service offerings across eight states. The total homes and businesses passed by Shentel's networks increased to 585,340, with Glo Fiber expansion markets accounting for a significant portion of this growth.

Strategically, Shentel's acquisition of Horizon is expected to enhance its competitive position in the commercial fiber market, particularly in Ohio and adjacent states. The company anticipates that the integration of Horizon will yield operational synergies, although it acknowledges potential challenges in realizing these benefits fully. Additionally, Shentel has been awarded approximately $149.8 million in government grants to expand broadband access to underserved areas, which it expects to fulfill by 2026.

Looking ahead, Shentel's management remains optimistic about its growth trajectory, emphasizing the importance of its expansion strategy and the integration of Horizon. However, the company also recognizes the competitive landscape and regulatory challenges that could impact its operations. The ongoing investment in network infrastructure and customer acquisition is expected to exceed cash flows from operations through 2026, necessitating careful management of capital resources and debt obligations.