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Frontier Communications stock up 2% as revenue grows for first time since 2015

EditorRachael Rajan
Published 05/03/2024, 08:02 PM
FYBR
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DALLAS - Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ: FYBR), a leading provider of internet, TV, and phone services, has reported its first-quarter 2024 results, showcasing a significant milestone with year-over-year revenue growth for the first time since 2015. FYBR stock was trading up 2.8% premarket Friday.

The company’s revenue of $1.46 billion marks a 1.5% increase from the previous year and surpasses the analyst consensus estimate of $1.44 billion. Adjusted EBITDA also saw a rise, accelerating to 5% year-over-year growth.

Frontier's President and CEO, Nick Jeffery, attributed the positive results to the company's expanding fiber broadband business, which experienced a 24% increase in revenue driven by customer growth and higher average revenue per user (ARPU).

The company added 322,000 fiber passings, reaching a total of 6.8 million locations passed with fiber. Additionally, Frontier added 88,000 fiber broadband customers, resulting in an 18% growth compared to the same quarter last year.

The company's adjusted earnings per share (EPS) came in at $0.00, which was $0.07 better than the analyst estimate of -$0.07. Operating income stood at $90 million, and net income was reported at $1 million. Frontier generated net cash from operations amounting to $335 million.

For the full-year 2024, Frontier reaffirmed its operational and financial expectations. The guidance includes an adjusted EBITDA of $2.20 to $2.25 billion, fiber passing additions of 1.3 million, and a cash capital investment of $3.00 to $3.20 billion. The company also expects cash taxes of approximately $20 million, net cash interest payments of approximately $750 million, pension and OPEB expense of approximately $40 million (net of capitalization), and cash pension and OPEB contributions of approximately $125 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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