EDINBURG, Va.—Regional telecommunications operator Shenandoah Telecommunications Co. got a big boost from its wireless operations in the second quarter, with the company’s wireless segment doubling its net income compared with the same period in 2005.
Shentel’s wireless net income jumped from $1.1 million last year to $2.2 million this year. Shentel, a Sprint Nextel Corp. CDMA affiliate, saw its wireless revenue climb to $4.8 million for the quarter, up 21 percent compared with a year ago.
Shentel had 134,559 retail wireless customers at the end of June; the carrier added about 5,400 net new retail customers in the second quarter, up about 5 percent from 2005’s second quarter. Shentel’s wholesale customer count is at about 40,000.
The carrier reported overall churn of 1.9 percent.
Shentel recently extended a forbearance agreement not to sue Sprint Nextel over affiliate agreements; the agreement now extends until Aug. 14 or whenever a lawsuit pending against the national carrier by other affiliates is resolved.
Shentel shares were down significantly following the company’s earnings announcement. The stock, which was previously hovering around $46 per share, dropped to $44 per share.
Shentel has said in the past that it is considering the sale of its wireless unit.
