SHEN - Earnings call transcript Q2 2019 | Shenandoah Telecommunications Company

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Operator

Good morning, everyone. Welcome to Shenandoah Telecommunications Second Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. John Nesbett, Investor Relations for Shentel.

John Nesbett

you us. thank and morning, for joining Good The results June for today's call XX, review Shentel's is to the purpose of XXXX. second quarter ended

release this in an we'll available details Our this and at on be announcing our were announced made Please a later the of page release results are note this shentel.com. that will in our investor The the replay set reviewing be distributed presentation press website, is audio forth included today. call. press morning, call

With the and today President Chris Chief and President, are, Executive Operating Vice Officer. Vice Jim Chief us Executive Finance call on Financial French, and Volk, Senior Officer; President Dave and Chief Officer; Heimbach,

remarks, our we will prepared After question-and-answer a session. conduct

Slide our this subject which always, of two As forward-looking may and you the uncertainties. Safe you that disclaimer please contains and conference reminds call certain risks statements include let me to to Harbor presentation, refer

to a you're cause review. statements. may filings, which the encouraged actual of results in SEC differ factors discussion risk detailed materially from our These provide to I'll Hence, various

forward-looking You're these undue any to statements. update revise to except as we place no reliance publicly or on by obligation cautioned forward-looking undertake required not law, statements,

Chris I'll Okay, call with now. turn Go over that, Chris. to ahead, the

Chris French

segments. this We appreciate with operating everyone all We've Thanks, pleased John. great joining morning. and across another our of I'm us quarter, had the results solid

recent developments our affect get I'd on a results. may review, like minutes our that Before discussing into wireless spend providing quarter we business to our second comments before few

July indication approval and Justice the recently of there merger. to few made the regarding proposed announced that T-Mobile. of been FCC's approve planned Department Sprint followed a the The know, April. you they've This of in have in late As merger announcements

divest consent the customers Sprint prepaid DISH. to spectrum certain decree DOJ of agreed part assets to to T-Mobile and the has approval, receive As

our providing divestiture continue only service and use the will that if we assets, will is T-Mobile spectrum customers Please Sprint generating mutually the in agreement revenue to merger. from their occur markets Furthermore, with planned prepaid amended. Sprint affiliate to until note and this complete our

and agreement options reminder, as triggered that merger closed. a As disclosed, the our once outlines the could is following previously proposed be affiliate

desires, are basic on options the four follows. T-Mobile's as dependent While

new our new an assets addendum to an to T-Mobile Shentel use elect could Shentel purchase agreement, brands the spectrum T-Mobile PCS the the may allowing and new the affiliate business. negotiate any The T-Mobile. the option assets and of of operating to right

agreement. incorporate option exercise and into our T-Mobile our network to affiliate the customers Shentel in the new T-Mobile sell legacy in may them legacy may Or network and area T-Mobile service subscribers area. service purchase decommission finally, and its our or

of At become we any the So with of scenarios likelihood time, exclusive we associated this color provide any in on this or the of new possible T-Mobile the merger. proposed the provider area. commentary cannot

in consider We the the obtaining proposed we outcomes we as our best an completed, continue shareholders. outcome have will to is If engaged concessions. merger is with terms interest to help advisors an the the and possible associated us divestitures all of prepare that objective monitor options for of

across results. key in advantage and Shentel on the serve network to to growth markets is we continues turning segments quarter capitalize that all a that this we Now in second the believe competitive investments OIBDA adjusted led that our to driver quarter.

opportunities years. in two the the call later new coming networks in returns carrier our for strong multiple investments expansion to and which customers commercial business about will of segments. allows and initiatives, our achieve foundation of wireless, many residential, serve network set to we growth expect speak ability fiber can invested of capital, as us Dave will across benefit new cable unique Our the

Jim welcome like close remarks, my to Volk take a to I minute to I'd Before Shentel.

announced financial we and Jim's roles of traded June, years senior know, Officer. you providers, served including variety with growth, telecommunications of has the Chief appointment industry a brings late affiliate, Financial publicly management and Sprint former experience in UbiquiTel. as stage telecommunications As XX both in Jim in corporations early high large

short made been he's with on In all growth. to us, Shentel and time will experience believe and valuable the we we team, to build tremendous knowledge asset contributions already of for record our he's as of business segments our his continue a our be

our of now I'll that, to review Jim the the turn call to With financial over details results.

Jim Volk

both that many and have great opportunity for I'm everyone. excited good to been reconnect forward Shentel tradition of look the years. join to morning, to in have the for many Shentel you of meeting the months. growth to space telecom Chris, the to you years. and coming covering XX-plus you, experienced And It's Thank more I buy-side has with the great and of contribute sell-side the past

to Please Slide Consolidated to Now second compared XXXX. to X.X% turning to six. XX, $XXX.X $XXX.X ending June the refer in the million financials. the quarter quarter revenues million in grew year-over-year

$XX approximately Operating income quarter increased million of to $XX.X million the in versus XXXX. second XX.X%

diluted Net second period. $X.X $X.XX of $XX.X million the last $XX.X share million $XX million adjusted OIBDA quarter Consolidated income for of quarter per the million share quarter or prior-year in to for year. in $X.XX XXXX to from compared or X.X% the was increased the second per diluted

to received deferred calculation changes presentation the primary the The calculation. from prior contract Please waive industry from amortization exclude to the of of fee periods from management OIBDA were Sprint the practices. the and note, conform noncash costs we and adjusted changed benefit

current reconciliations prior XXXX. have definition current the reconciliations adjusted of definition of OIBDA We of each OIBDA, appendix also the operating in morning, both to quarter the for OIBDA presentation the OIBDA and earnings income in reported and we our adjusted on to included from posted the this XXXX call website adjusted

and has million $XX.X six $X.X XX, been three the reported I'd waived regarding GAAP million NTELOS the like ended the from months months to received in to fees benefits the in and nonmonetary emphasize June our Sprint benefited nor acquisition XXXX. that there any the results not management We to change Sprint exchange. and from from

expect another benefits million $XXX.X receive We year to management the Sprint the waived XXXX. fees of in through

XXXX operating travel million as Wireless revenue revenue for $X subscriber revenue, seven. in decreased $XXX.X Slide the in to $XXX.X second-quarter on highlights roaming revenue, approximately million the million was revenues in in decrease decline partially offset to wireless equipment Sprint due our in The $XXX,XXX compared to increases a slightly and $XXX,XXX period. prior-year In in $XXX,XXX revenue. by of

affiliate recognition travel agreement, the the to quarter, other our one revenue and company's Related when Shentel under subscribers, Sprint another the compensate Sprint network. for treatment used

at in XX, XXXX monthly the of Shentel XXXX. closing transaction through to from This million payment $X.X has for NTELOS a reflected December been Sprint of net period in beginning the the

new Sprint $X.X XXXX fees. pending Sprint, payments for beginning Shentel a before to in per million paid be month through affiliate XXXX, on of the May agreement three-year agreement with period. the our Under fees travel reset travel are April suspending to

the new XXXX. been to Sprint fees, travel not establish the an working fees have in have we with reached we Although third-quarter resolve and new agreement, we to the expect

the margins years. million Adjusted in second million XXXX OIBDA wireless our in compared with to $XX.X consistent period, X.X% segment to and prior $XX.X prior-year increased remain for the the of quarter

in to and increased and shown of property, $XXX,XXX driven the As use higher offset by related states favorable OIBDA one-time Virginia equipment $XXX,XXX, from $X.X rulings goods Slide adjusted higher million West in ads by gross eight, lower tax $XXX,XXX in Virginia, sold of sales revenue and cost on benefits of wireless year-over-year. partially by

customers revenue to average Slide XXXX, X% bandwidth the per an $XX.X in in quarter nine. video by upgrading increase customer the in second to Cable of a Revenue $X.XX higher quarter Sandy increased results. -- to Moving speeds our and of full to Big driven million of due and segment increases from second rate quarter

million by the compared Sandy. XXXX. offset in $XX.X The $XXX,XXX reflected partially expenses from grew cable $X Cable associated $XXX,XXX primarily of is million OIBDA, due approximately and X.X% on with $XX.X acquisition to Slide Big higher of revenue, increase adjusted growth second OIBDA in in an start-up in our to the for million and adjusted quarter XX, home network, expenses of fiber-to-the maintenance repair as the $X.X to million of increase

home of next, cable Dave the XX%. start-up will which Excluding the OIBDA adjusted initiative, have cost been fiber-to-the margins would our discuss

million of the to Service of of due XX, wireline Universal adjusted primarily Slide On and $X.X annual support regulatory from up revenues funds $XX.X true fund. OIBDA the million increased

Turning Slide to balance XX. on sheet our

interest As XXXX, we XX, of of X.XX%. average $XXX June rate had an million debt outstanding, with of

Our ratio, X.XX under facility leverage was credit net defined as our times.

We line liquidity, ended available the in including $XXX second million $XX quarter in with XXXX of credit. available million revolving

loan leverage, of generation. low-cost position are material liquidity no of until debt, cash in flow and We XXXX, maturities strong plenty with financially modest excellent

growth operating history Coupled and Shentel with its well continue strong delivering positioned to is of shareholder value. results,

call to And now I'll the over turn Dave.

Dave Heimbach

the second of everyone. over morning, good some our going of operational from start Jim, Thanks by highlights and XXXX. I'll quarter

had key the to We we wireless subscribers XXX,XXX approximately of quarter. end at second postpaid XX, our postpaid Turning Slide metrics of the show the business.

continues the were while principally for driven consumers approximately slow. quarter increase the second in phones to watches, additions was XXXX to to IoT The for postpaid upgrading gain largely X,XXX devices, the Apple demand category, by incremental XXXX. of quarter second Net net of their in consumer compared continues that approximately the of year-over-year $XX,XXX rate

the gross up $X year-over-year, driven relatively with of IoT mix lesser by plan the base. remained XX% the devices discounts, year-over-year. the approximately and of increase increased phones and a rate over ARPU representing year-over-year, churn ads While in declined by XX% extent, primarily flat Sprint X,XXX, X% in migrations, to total

doors, We the X.X% finished postpaid of continue with branded of versus have to at out was XXX XXXX X.X:X ratio a second for the quarter in quarter port an port and Sprint year-over-year. increase positive which

postpaid of the in data of device our comprised base upgraded quarter Lastly, XX.X% X.X% and devices. was and base their of tablets the

second the Slide Moving subscribers prepaid had We quarter. approximately of to end XXX,XXX the at XX.

XX stores, were end for quarter net the our quarter quarter. XXXX, with boost X,XXX second under respectively which the Prepaid gross the and XXX despite the consistent to additions stores more is at and adding of XXXX, XX,XXX total second bringing just

us approval T-Mobile concession the for announcement informed several of the operations divestiture Sprint dealers in they've have back regarding the that SEC required the the Notably, given their merger. brand months, paused or that recent of boost of scaled

brand prepaid declining base. of XX year-over-year continued churn the increased to the total XX% $X.XX ARPU approximately mix prepaid boost our the basis X.XX%, as improve, to increased points our to subs However, of on prepaid while

compared year, of business. to to the Sandy RGUs $XXX,XXX $XXX,XXX Now Big X.X% turning from due approximately X,XXX in acquisition to Total of addition prior approximately grew cable primarily to the XX Broadband. approximately the Slide RGUs our in

to year organic we quarter roughly continue to ARPU. by in that RGUs XX.X% to also second the through pleased increased modest quarter which XXX in driven growth primarily We maintaining in We're while the is XX.X% focus our report as broadband penetration, from last on quarter added ads the category. broadband growth, penetration this broadband net growing in

X% grew and customer to per revenue $XXX, annual monthly price by average video year-over-year earlier, noted broadband of combination upgrades driven speed Jim As a increases.

homes of card. XX% markets branded of cable per Over broadband XX% to with base second, now to our new migrated rate our passed are capable upgraded in having approximately in areas the of X of already our gig powerhouse up speeds

goal is from card from competitive markets to our upgrades great continuing constructed by while service the get have expect rate our better with base in or provide local come customers to than over speeds new wireless cable our a to and the Shentel. deeper at migrating can Our satellite higher fixed DSL, speed price mode they time

a the new over capable XXX% initiative, Fiber, to which Moving excited optic home be branded launch network. XX. of We're will announce fiber-to-the Slide fiber of symmetrical multigigabit a Glo speeds to

the service operated municipal has company will of local base in exciting network, years. as commercial fiber-to-the nearly of and out leverage its customer fiber strength heritage initiative, mile the X,XXX network existing provider new a But and region networks existing its depth adjacent flavors this markets. its of Shentel the fiber with relationships route the to its into edge strong for home various

the We as small cities targeting emerging residential and in region well, will market. medium-sized to to our business the cell wholesale in win believe additional this new small- metro market including segment fiber company in well position the initiative commercial the

Shentel's ILEC adjacency of company competitive regulation in the but evaluates lack the and market including, to limited is several of viable existing a of namely, businesses, build the whether density a by local homes process. factors fiber, and not permitting and the relative a criteria, The there and its landscape, favorable broadband to, the offering

businesses selected for of launch include Virginia, constitute Glo Winchester, the and are company's combined in passing XX,XXX less that and they per cost initial three roughly Stanton markets of which and Harrisonburg, homes meet all Fiber than $X,XXX. The the target

this Winchester. year. in We'll Construction commercial company in initiative has quarter expects the progress as begin our launch in and quarter already Stanton fourth begun plan update and in on Harrisonburg, of the we in this build of a you third construction to the target with progress

to covers XX, million of announce also Ohio. Shentel excited and West acquisition XXX,XXX of Southeastern megahertz is between Slide XX roughly across which X.X-gigahertz portions On X Virginia and and the households spectrum, Virginia, of XX POPs

natural emerging As delivery. we foundational densely broadband areas, less means deployment for is previously spectrum extension in will broadband disclosed, of and its Shentel's a to this fixed wireless this be populated strategy mile last service

home our footprint will in to in to half target region. Total wireless acquired XXXX areas approximately broadband spectrum expected $XX offering, equipment. the spectrum fiber markets CapEx existing in LTE The fixed carrier is to a fixed and service be million, payments and for the our launch based, grade ILEC license rural newly sometime The to and Mid-Atlantic to for leveraging XXXX. with million this adjacent related million back company planned plans $X the $XX of cable standards related wireless

We fixed rural telecom services fiber-to-the believe long-term region to that level mission found are markets opportunities anywhere in smaller the the home broadband both with strategies and of represent both our United wireless our has to bring that company. our in they same and the significant growth States. consistent for will And

serve. to forward to continuing position in markets all initiatives the with We growing look leadership our we both progress of and our

Slide provides XX, six spending to capital In XX XXXX, months ending update $XX.X respectively. our million, $XX.X our was and XXXX the CapEx plans. and million three an June

and for million XXXX the segment which prior fixed spectrum our $XX wireless for not $XXX to guidance. million CapEx, our and CapEx CapEx purchase, wireless. Fiber cable in related fixed to that We million initiative was from have account now the million $XXX updated for contemplated Therefore, $XX guidance includes Glo

fiber million upgrades DOCSIS conversions contains to and networks to X.X including systems, year all success-based Also expect still complete enable $XX end speeds gigabit DOCSIS deployments. X.X our and cable upgrades wholesale of our We for legacy and the by our the XXXX. the commercial across of digital by cable

take and Thank questions. to much, very you operator, ready now we're

Operator

Instructions] Rick question And comes [Operator first the our of line Prentiss. from

Rick Prentiss

Jim, welcome, you with working again. good And to be

Jim Volk

Yes. Thank you, Rick.

Rick Prentiss

Sprint and questions. with in it's of not potential time because in Chris, a Washington as T-Mobile Couple busy DOJ that's would in guys DISH -- your been Yes. mentioned, asset the merger business you you divestiture, the prepaid postpaid guys. some the that trying have that's stayed not just with customers? of how of Shen base And part decision, boost with -- going to kind I'm customers you is. the scale you Do of your much

that about So a have if the settlement? settlement, was to do you do that how about think the if we DISH of excluded think be many customers from going kind it of the how profitability are What's segment that? And you into put revenue?

Dave Heimbach

Hey, Rick, Dave. this is

start top you I wanted or you So another do don't question on one know ask want to of you to have that? that with

Rick Prentiss

Yes, I'll start that one. with

Dave Heimbach

Okay.

Are how you many boost clarify, to postpaid. with we on first or? clear correlation I I'm to me got trying have seek on subs let comment not So DISH the prepaid. the approximate

Rick Prentiss

they've their some customers Boost classified classified they're of Sprint, longer as are with as moved no prepaid, postpaid. because Yes,

trying the definition settlement, it's So DISH get Boost Sprint Boost prepaid, prepaid, postpaid. in what's to at Virgin just of in prepaid, the

if And your the to the do many that kind customers part not Shen approved? so of within over deal since definition is have same DISH proposal, Sprint environment sending in what of you how are is that of customers

Dave Heimbach

but business. of respect all and with one can view our question base is on our tell subscribers, postpaid answer that of opening affiliate we together Great basis Boost. prepaid And agreement that as you as any of an our tranche we I point that contemplates the stated is Yes. to prepaid comments, under of prepaid speculation his have in are XX% don't Chris to. that

our not so where exclude in And kind divergent to include transaction prepaid versa. that place we're really a base of going on any and or vice postpaid we're speculate might

Jim Volk

any we in to of be Rick, don't And business prepaid have boost prepaid all numbers, the in clear, is postpaid. our

Rick Prentiss

Okay.

might Okay. what's to figure shared think would some of it's you costs, hard and you of try guess. do of out if how of what separate it I And to about of it's buying the people think costs profitability kind that, I a a MVNO. network but were the hard, behind and about prepaid to kind and because DISH the pierce lot be profitability of figure

Dave Heimbach

think Yes. there, to we Rick. go I want don't

Rick Prentiss

Yes. understand. No, I

Second one, interesting maybe in about megahertz the you're X.X, that looks POP paying. it like $X.XX a

in addressable As you but given of XX some about the purchases you've the million equipment. market, timing, spectrum that think fixed wireless $X project, only million of us XXXX, the

How it longer also expenses section operating the build for homes of future you're categorize capex, to also out I it think what interestingly, And your for is we going guess, passed. should is revenues? equipment cable assume cost I those term and into operating then to

Dave Heimbach

last -- You got yes, right. part got that you

terms and In fixed really strategy fiber mile wireless We and cable costs of to how is the think networks. of existing about equipment so extension forth. a our and think last that

means the densely So an serve those periphery on alternative areas it's target markets of we less that to populated terrestrial-based connections. just through existing

we that reason extending economic more the fixed plant the per cost compelled environments or those technology the wireless as cable is fiber. And far passing lower than are density is in by

spectrum per basis excited we're differ leverage to different about levels. cost some the be in So on experience, the as can will unlicensed on density that And know, opportunity on they band. technology that But you I've based a obviously license bands. got a pass challenging.

we decision for compelling into pick able this strategy business. were our get up factor to fact this spectrum was license the to a that some So in

Rick Prentiss

impact CapEx launch these think early guidance, half be might -- should of we XXXX how million but for that XXXX what know think of it's should how second about POPs. I And we about to

Dave Heimbach

position on a in you XXXX again. not give to we're guidance Yes,

Rick Prentiss

the scenarios out. wrapped merger Sprint that is, around Chris And with in Okay. one that other question T-Mobile All right. laid

If if in might project? spend stage you've or you money depending XXXX, XXXX spent close, just when that guys out, reimbursed get the for deal approved, might early do on play an into CapEx on CapEx how guys you through this thinking spending

Dave Heimbach

get if level, to invested a for more foregone that value At areas. agreement that mature high business time of the newly had we the if not the Yes. or business operate sufficient the by in contemplates the the affiliate having it's returns capital of greater we

know, expansions, spending. And way, proceed so, territory not plans whatsoever as under of we are sliver a the Richmond namely the capital terms territory obligations expansion you result, that to recent have our we have altered as certain And in continue and we with under those.

Rick Prentiss

larger Last me for think it a to have no in case? be larger how the time And you'd goalpost mentioned as Is of of is, as Okay. if go get far Sprint. like kind on does still that become to what guys the past, one any there T-Mobile, Sprint would you that you vote I kind much a over affiliate of willing frame? is

Dave Heimbach

obviously there agreement, entertain terms, would relationship goalpost mind, contingent But of love to love new continuing track should consistent additional whatever the with a Sprint no might if to that record terms we entertain going conversation. we the affiliate but itself. are we be in No, new be. to upon have to opportunity our existing and taking obviously our That's opportunity great would territory that present relationship with assuming the on

Rick Prentiss

so of more December land. isn't the the scheduled I X, till case to there a start is limbo bad news lot court guess,

Jim. even So -- And have good day or a Dave to forward caught guys. up good getting job, looking

Jim Volk

right. All Thanks, Rick.

Dave Heimbach

Rick. Thanks,

Operator

Zac B. next our from question And Silver comes FBR. Riley from

Zac Silver

wanted back the were with uncertainty. this aboard, question prepaid I And gross due Hey, thank you that for were of dealers and adds Dave, guess, start the some sort pulling taking I the the just Boost, to welcome described of flat quarter. you to Jim.

also, of to divestiture proposed? think going us as we're remind the do the get to the back merger in event Just your to you can those And stores wanted what outlook, with then currently as is waiting happen for happens in you half what still it's to DISH dealers the resolution?

Dave Heimbach

Zac, Hey, morning. Yeah. good

market the yes, DOJ. that is So, prepaid by made the fear my the that merger scripted doubt some said business comments, related in this has unexpected with evidence just concession we I in are as to and headwinds facing the get and to uncertainty in SEC the the approved I associated some mean, company there

the so Boost -- And on we brand remain long our bullish term.

higher we're it Sprint terms our But of in prepaid. We branded little Virgin Boost to focus the brand. prepaid subs subscribers and you short -- outlook, uncertain be forth and business, Mobile so in and and as a know, on than a ARPU the term, the our continues insurance those of the candidly, have

is our why And on Boost. base so now that's of XX%

answer So that one I don't hand? does your question? have -- do Or you in

Zac Silver

small that's think of anything fees, as another was And well? million the can the that only sums the it I travel Sprint? issue, you And up, piece $X agreement function non-renewal, then on renewal? off-line. sort with the work more take when No, impact. of is we a think, affiliate rest this Or renegotiate them the say merger up. relationship juggling your with is And Yes. to travel about -- one is I the But that does follow then affected of a the

Dave Heimbach

Yes.

them. like resolved negotiating first both third to in this in good speculate we So we to feel constructive but quarter. as on comments parties we scripted intentions this mentioned discussions on with expect Sprint's of in having are -- get faith, the front. We're we And our -- don't want very and all,

is of we're the the this one with. only any with to agreement, terms In affiliate other now wrestling outstanding issues currently respect that

Zac Silver

That rates on it. I'm more. to offering, mean, of these Got intriguing. perspective I anything cost you another in strategy emphasis thing you some expect whether home helpful. certainly in that or path be And interested you're is per expect, offering bundle? And be regarding the just guess, out the but terms penetration And a I broadband-only on then, edge one more that of you gave is have in that to the an broadband-centric new would targeting territories? this

Dave Heimbach

Yes, absolutely.

we be perspective, the mix, rate in go will but in range that the from product to target terms And a well maturity. of once services our of the -- low- be penetration to market. get we're broadband selling to bundle, anchor centric It to as voice penetration will include to services. So product that video we in able bundled be set going will mid-XX% will a be as the is it's

And video on cable lineup with partnering are the we us our of channel front, to we streaming offering the and MobiTV delivery a available markets. have that essentially in

So full-throated it of it home Fiber networks comprehensive will Wi-Fi with be Cloud of and video for content, well solution kinds and include those unlimited their in the forth, branded and DVR lineup whole and will things. a local have and voice. so a on voice so a and monitor remote we'll Glo folks as And so to app

So in we able a it sell be broadband to will is first, but bundle.

Zac Silver

the That's forward my it. quesiton. helpful really thanks Got for launch. And to and taking looking

Dave Heimbach

Yes.

Operator

Khorsand And our next question comes from with Hamed BWS Financial.

Hamed Khorsand

morning. Good

get you back? this do past negotiation, months you clarify just on it with If travel sprint this could

Dave Heimbach

we... Do

Jim Volk

that? you I'm sorry, repeat could

Dave Heimbach

yes. Yes,

Hamed Khorsand

you So with negotiation? that get $X do the going this for Is months part that million QX. on the negotiation aren't these travel travel of these with fees, like back covered

Jim Volk

are the -- of go had be to back I've that negotiation. Yes. to part the retro today Yes, will case. as we going

Hamed Khorsand

and are slowdown as feedback on you dealers given gotten doing side, the doing far to What for the it? boost just in that front you've what And are from on prepaid you then your the prepaid. compensate as

Dave Heimbach

about boost any impacted. that divestiture. we've status tight third-party think the of a question. third-party the answer to have may And had our with I very other We network with. own relationships forgot distributors. I stores in long-standing boost question have that of Jack a ourselves, And look, really we great leverage stores we distributors don't the isn't Well, asked relationships

continue invest pretty to in And the them and noted expand distribution. to we relationship a recent with this so as to do We support is given reluctant with announcements. folks our that Hamed, So continue them are had what little relationships to aggressive -- plans year we've we have. always some

we're XX and short-term distribution we're just we year. rhetoric continue caused merger concerns. It's some mentioned, prior as to impact -- bullish of over this we media on mentioned as very so by presence understandably we've certainly term, additional expanded has the Boost. calls, we the of points And And on some of year long

Hamed Khorsand

side upon when wireline just have the broadband transition from the that And next year? some subscriber looking to finally this you to get the business, Or the be deployed Okay. you wireless on there build what going you are is broadband fixed of on to base? natural

Dave Heimbach

higher Yes. No, that's good spectrum handful twofold subscribers DSL question. a in will then or legacy call deliver but base, speeds we wireless still have enable subscriber fairly our otherwise X.X them we get portion to a locally on of it, It's We and that technology here subs this us of County can total fixed DSL, a so. strategy. Shenandoah that's hope small a X,XXX

in adjacent that rural capture can we this the existing a spectrum are we designated with of believe designated more immediately are to households areas footprint share sense much The technology. XXX,XXX that covers that significant incremental opportunity those is is households that there's meaningful roughly our

be us of whole a on as in the growth activity the migration it's So subs. existing going to opposed a to opportunity main for

Hamed Khorsand

have have you as the your pricing, seen offering? price you're at is, question you increase customers seen you're from last do the And ceiling apprehension the you points think you right. any All point that with -- now

Dave Heimbach

business? which In

Hamed Khorsand

In broadband.

Dave Heimbach

Yes.

but an option So these and investments broadband data offers less our your has the data card unlimited grow prohibitive ARPU, than ARPU DOCSIS slower grow we a in have a X.X caps is more at has for rate done. historically pricing -- to and speed new the lot strategy far rate in We leverage money.

our And term relationships customer so base. our intention there invest is in with longer to

we our the a said are that, there great is as rate having tiers however, we've still on -- upside base still we feel legacy prior fairly that portion about of still like So because half cards. low-speed got of meaningful

consume So continue bandwidth, to grow to as to do ARPU. those we more opportunity an long-term and go upgrade folks see

Hamed Khorsand

you. Thank

Chris French

Hamed, just product, the costs. to add to just increases on that, that been the content to pass-through video in has side, our strategy

by So video increases driven product. on the that revenue you'll see

Hamed Khorsand

Okay. Appreciate it.

Operator

time. are questions there And at Instructions] further this from no [Operator phone the

John Nesbett

to you, any results everyone and like call future will updated key to a for keeping thank forward look on day. developments. I'd Thank right. have you our joining All and today, good our we and

Operator

Thanks And conclude participation. this today's for does your conference call.

You may disconnect. now

Shenandoah Telecommunications (SHEN) 10 Aug 192019 Q2 Earnings call transcript