SHEN: Rising Costs, Declining Cash
SHEN reported a net loss for Q1 due to increased wage costs and several system upgrades. The system upgrades are expected to cause elevated expenses for the next 20 months
- SHEN reported an unexpected loss for the first quarter due to new system upgrades and the cost structure could remain elevated for the next 20 months
- SHEN’s revenue is pacing ahead of expectations on higher Glo Fiber subscription numbers. SHEN’s business plan requires additional capital expenditure spending to expand the fiber network for Glo Fiber
- The higher expenses in the quarter reflect SHEN implementing upgrades to multiple systems companywide. The new software would save $2 million annually after the 20-month phase-in process is concluded
By Hamed Khorsand - https://www.smartkarma.com/profiles/hamed-khorsand?utm_source=tiger_community
On Shenandoah Telecommunications Company (SHEN US) - https://www.smartkarma.com/entities/shenandoah-telecommunications-company?utm_source=tiger_community
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