Segment Reporting

6 Months Ended

Jun. 30, 2019

The Company's reportable segments, which the Company operates and manages as strategic business units that are organized according to major product and service offerings, include: Wireless, Cable, Wireline and Other. A general description of the products and services offered and the customers served by each of these segments is as follows:

•

Wireless provides digital wireless service as a Sprint PCS Affiliate to a portion of a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, and Ohio. In these areas, we are the exclusive provider of Sprint-branded wireless mobility communications network products and services on the 800 MHz, 1900 MHz and 2.5 GHz spectrum bands.


•	Cable provides video, broadband and voice services in franchise areas in portions of Virginia, West Virginia, western Maryland, and eastern Kentucky, and leases fiber optic facilities throughout its service area. It does not include video, broadband and voice services provided to customers in Shenandoah County, Virginia.


•	Wireline provides regulated and unregulated voice services, video, broadband, long distance access services, and leases fiber optic facilities throughout portions of Virginia, West Virginia, Maryland and Pennsylvania.


•	Other operations are represented by Shenandoah Telecommunications Company, the parent holding company that provides investing and management services to its subsidiaries.

Three Months Ended June 30, 2019



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	94,350	$	30,716	$	5,558	$	—		$	—		$	130,624
Equipment revenue	16,548		255		52		—			—			16,855
Tower revenue	1,654		—		—		—			—			1,654
Other revenue	318		2,238		7,225		—			—			9,781
Total external revenue	112,870		33,209		12,835		—			—			158,914
Internal revenue	1,270		1,481		6,692		—			(9,443		)	—
Total operating revenue	114,140		34,690		19,527		—			(9,443		)	158,914
Operating expenses
Cost of services	33,563		15,701		8,979		—			(8,746		)	49,497
Cost of goods sold	15,742		112		19		—			1			15,874
Selling, general and administrative	10,592		5,536		1,988		9,752			(698		)	27,170
Depreciation and amortization	32,219		6,555		3,447		132			—			42,353
Total operating expenses	92,116		27,904		14,433		9,884			(9,443		)	134,894
Operating income (loss)	$	22,024	$	6,786	$	5,094	$	(9,884	)	$	—		$	24,020

Three Months Ended June 30, 2018



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	95,690	$	28,748	$	5,301	$	—		$	—		$	129,739
Equipment revenue	15,819		144		46		—			—			16,009
Tower revenue	1,636		—		—		—			—			1,636
Other revenue	364		2,122		6,631		—			—			9,117
Total external revenue	113,509		31,014		11,978		—			—			156,501
Internal revenue	1,244		1,097		7,134		—			(9,475		)	—
Total operating revenue	114,753		32,111		19,112		—			(9,475		)	156,501
Operating expenses
Cost of services	33,488		15,125		9,373		12			(8,864		)	49,134
Cost of goods sold	15,082		63		20		1			—			15,166
Selling, general and administrative	12,367		4,661		1,686		11,812			(611		)	29,915
Depreciation and amortization	31,565		6,179		3,240		133			—			41,117
Total operating expenses	92,502		26,028		14,319		11,958			(9,475		)	135,332
Operating income (loss)	$	22,251	$	6,083	$	4,793	$	(11,958	)	$	—		$	21,169

Six Months Ended June 30, 2019



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	191,425	$	60,421	$	11,043	$	—		$	—		$	262,889
Equipment revenue	31,839		525		103		—			—			32,467
Tower revenue	3,325		—		—		—			—			3,325
Other revenue	665		4,503		13,908		—			—			19,076
Total external revenue	227,254		65,449		25,054		—			—			317,757
Internal revenue	2,540		2,950		13,382		—			(18,872		)	—
Total operating revenue	229,794		68,399		38,436		—			(18,872		)	317,757
Operating expenses
Cost of services	67,041		31,348		18,130		—			(17,504		)	99,015
Cost of goods sold	30,169		287		55		—			—			30,511
Selling, general and administrative	21,954		11,262		3,831		20,213			(1,368		)	55,892
Depreciation and amortization	63,269		13,013		6,980		270			—			83,532
Total operating expenses	182,433		55,910		28,996		20,483			(18,872		)	268,950
Operating income (loss)	$	47,361	$	12,489	$	9,440	$	(20,483	)	$	—		$	48,807

Six Months Ended June 30, 2018



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	187,855	$	57,219	$	10,609	$	—		$	—		$	255,683
Equipment revenue	33,193		303		92		—			—			33,588
Tower revenue	3,294												3,294
Other revenue	732		4,172		13,170		—			—			18,074
Total external revenue	225,074		61,694		23,871		—			—			310,639
Internal revenue	2,483		2,128		14,948		—			(19,559		)	—
Total operating revenue	227,557		63,822		38,819		—			(19,559		)	310,639
Operating expenses
Cost of services	67,238		30,281		19,175		12			(18,230		)	98,476
Cost of goods sold	30,809		119		42		1			—			30,971
Selling, general and administrative	24,502		9,609		3,403		22,480			(1,329		)	58,665
Depreciation and amortization	65,490		12,203		6,634		277			—			84,604
Total operating expenses	188,039		52,212		29,254		22,770			(19,559		)	272,716
Operating income (loss)	$	39,518	$	11,610	$	9,565	$	(22,770	)	$	—		$	37,923