DALLAS - Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ: FYBR) has been awarded seven ConneCTed Communities grants by the Connecticut Department of Energy and Environmental Protection. The grants, funded by Connecticut’s allocation of the American Rescue Plan Act (ARPA) Capital Project Fund, are aimed at expanding high-speed fiber internet to unserved and underserved areas in the state.
The company has already provided fiber internet access to over 1 million homes and businesses in Connecticut over the past three years. This new grant funding reinforces Frontier’s dedication to improving digital infrastructure and increasing economic and educational opportunities by connecting additional communities to its high-speed fiber internet service.
Vishal Dixit, Chief Strategy Officer at Frontier, expressed gratitude for the state support and emphasized the company's commitment to enhancing Connecticut's digital infrastructure. According to Dixit, the network expansion will allow more residents and businesses to benefit from reliable, high-speed internet.
The initiative is part of a broader effort to strengthen Connecticut's towns and cities by making them more resilient and better equipped for the digital age. Governor Ned Lamont and Casey Flannagan, First Selectman of Sharon, Connecticut, both highlighted the importance of the expansion for economic development and quality of life improvements, particularly for local businesses, students, and families.
Frontier, known as the largest pure-play fiber provider in the U.S., continues to build on its mission to provide gigabit-speed broadband connectivity. These grants will support the company's ongoing efforts to connect additional communities within Connecticut.
The information for this article is based on a press release statement from Frontier Communications Parent, Inc.
In other recent news, Wolfspeed (NYSE:WOLF) has nominated Thomas Seifert and Woody Young for election to its Board of Directors, a decision that will be ratified during the Annual Meeting on December 5, 2024. This comes following significant developments for Frontier Communications. The company has reported a 2% revenue increase in its Q2 2024 earnings call, amounting to $1.48 billion, alongside a 5% growth in EBITDA. Despite a net loss of $123 million, Frontier's operational cash flow remained strong at $374 million. The company has also been downgraded to Neutral by Citi, TD Cowen, and MoffettNathanson, following Verizon Communications Inc (NYSE:VZ).'s proposed acquisition, which has been opposed by Cooper Investors. In addition, Frontier has secured over $23 million in grants for expanding high-speed fiber broadband service in California's San Bernardino and Riverside counties.
InvestingPro Insights
Frontier Communications Parent, Inc. (NASDAQ: FYBR) has shown strong market performance recently, with InvestingPro data revealing a 58.84% price total return over the past six months and an impressive 89.28% return over the last year. This upward trend aligns with the company's recent success in securing ConneCTed Communities grants and its ongoing expansion of fiber internet services in Connecticut.
Despite these positive developments, InvestingPro Tips highlight some financial challenges. The company operates with a significant debt burden, and its short-term obligations exceed liquid assets. This financial situation could potentially impact Frontier's ability to fully capitalize on the growth opportunities presented by the new grants.
It's worth noting that Frontier's revenue growth has been modest, with a 2.14% increase in the most recent quarter. However, the company maintains a solid gross profit margin of 63.94%, which could provide some financial flexibility as it pursues its expansion plans.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Frontier Communications Parent, Inc., providing deeper insights into the company's financial health and market position.
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