- Frontier Communications Parent, Inc FYBR reported a second-quarter FY22 revenue decline of 8.7% year-on-year to $1.46 billion, marginally beating the consensus of $1.45 billion.
- The growth in consumer fiber broadband was offset by declining subsidy, video, voice, and wholesale services.
- Consumer revenue was $791 million, a 2.9% decline Y/Y, and Consumer fiber revenue rose by 2.2% Y/Y to $421 million.
- Consumer fiber broadband revenue increased 12.7% Y/Y to $268 million, driven by solid growth in fiber broadband customers and average revenue per customer (ARPU).
- Business and wholesale revenue was $651 million, a 6.7% decline Y/Y, while the Business and wholesale fiber broadband revenue was $264 million, a 1.1% decline Y/Y.
- Frontier built Fiber to 281,000 locations, bringing total fiber passings to 4.4 million. Consumer fiber broadband net adds were 50,000, resulting in fiber broadband customer growth of 13.9%.
- The adjusted EBITDA margin contracted 250 bps to 36.7%, driven by revenue declines, partially offset by lower video content costs.
- EPS of $0.41 beat the consensus of $0.24.
- Frontier held $3 billion in cash and equivalents and generated $229 million in operating cash flow.
- Outlook: Frontier sees an FY22 adjusted EBITDA of $2.05 billion - $2.15 billion (prior guidance of $2 billion - $2.15 billion) and targets Fiber builds to 1.1 - 1.2 million new locations, an increase from the previous guidance of 1 million new locations.
- Price Action: FYBR shares closed lower by 1.7% at $26 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
