- Frontier Communications Parent Inc FYBR reported a third-quarter FY21 revenue decline of 6.1% year-on-year to $1.58 billion, missing the consensus of $1.63 billion.
- The growth in consumer fiber broadband was more than offset by declines in video, voice, and wholesale services.
- Consumer revenue was $800 million, a 4.2% decline Y/Y, and Consumer fiber revenue was flat at $409 million.
- Consumer fiber broadband revenue increased 14.6% Y/Y to $243 million, driven by solid growth in fiber broadband customers and average revenue per customer (ARPU).
- Business and wholesale revenue was $693 million, a 6.5% decline Y/Y, while the Business and wholesale fiber broadband revenue was $275 million, a 1.4% decline Y/Y.
- Frontier built Fiber to a record 185,000 locations, bringing total fiber passings to 3.8 million. Consumer fiber broadband net adds were 29,000, the ninth consecutive quarter of positive consumer fiber net adds, resulting in fiber broadband customer growth of 5.1%.
- The operating income improved 37.9% Y/Y to $284 million.
- The adjusted EBITDA margin contracted 270 bps to 37.2%, driven by revenue declines, partially offset by cost savings initiatives, including the emphasis on reducing video content costs.
- EPS of $0.51 missed the consensus of $6.67.
- Frontier held $1.2 billion in cash and equivalents and generated $603 million in operating cash flow.
- Outlook: Frontier reaffirmed FY21 adjusted EBITDA outlook of $2.40 billion - $2.50 billion, and Fiber builds to at least 600,000 new locations.
- Price Action: FYBR shares traded higher by 4.03% at $32 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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