Shenandoah Telecommunications (SHEN) stock soared 5.37% in pre-market trading on Friday, following the company's impressive 2024 financial results that showcased its strong growth trajectory.
The telecommunication services provider reported record revenue growth of 22% to $328.1 million in 2024, fueled by the successful integration of the Horizon acquisition and the rapid expansion of its Glow Fiber business.
Shenandoah Telecommunications completed the integration of six separate systems from the Horizon acquisition within nine months, three months ahead of schedule. This allowed the company to increase its projected annual synergy savings from $9.6 million to $13.8 million.
The company's Glow Fiber expansion continued to drive significant growth, with customer net additions increasing at a compound annual growth rate of 99% and revenue growing at 135% since 2020. Glow Fiber added over 21,000 net customers in 2024, bringing the total customer base to 65,000, a 56% year-over-year increase.
Shenandoah Telecommunications' robust construction pipeline, with plans to add more than 100,000 fiber passings in each of the next two years, positions the company for continued growth in its fiber business. The company's long-term capital intensity is expected to decline dramatically once the Glow Fiber build-out and government grant projects are substantially completed in 2026.
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