Shenandoah's Q4 2024: Churn, Synergies, and Customer Acquisition Strategies in Contradiction

These are the key contradictions discussed in Shenandoah Telecommunications Company's latest 2024Q4 earnings call, specifically including: T-Mobile churn impact and timing, revenue synergies from Horizon acquisition, and Glo Fiber customer acquisition strategy:



Revenue and EBITDA Growth:
- Shenandoah Telecommunications reported revenue growth of 22% to $328.1 million in 2024, with the former Horizon markets contributing $47.7 million of revenue during the nine months of ownership.
- Adjusted EBITDA grew 20% to $94.6 million. The growth was driven by the successful integration of Horizon and the expansion of Glo Fiber, despite challenges from T-Mobile revenue churn andcord-cutting.

Glo Fiber Expansion:
- Glo Fiber revenue grew $21.4 million or 61%, driven by a 50.9% increase in subscribers and a 7.3% increase in ARPU.
- The expansion was part of a seven-year construction plan, with 2024 being the fourth consecutive year of increased construction pace and customer net additions.

Customer Growth and Penetration:
- Shenandoah added over 21,000 net customers in 2024, with Glo Fiber's penetration rates increasing to 18.8% in Glo Fiber expansion markets.
- This growth was attributed to the expansion of fiber networks and increased penetration in new markets.

Commercial Fiber and Incumbent Broadband Challenges:
- Commercial Fiber revenue declined $5.8 million due to $7.1 million in expected T-Mobile revenue churn, which reflected a full period of network disconnects.
- Incumbent Broadband Markets revenue declined $5 million due to cord-cutting and the end of the ACP program, resulting in a 16.9% decline in video RGUs and a 1.6% decline in data RGUs.