- Frontier Communications Parent Inc FYBR reported a fourth-quarter FY21 revenue decline of 6.3% year-on-year to $1.54 billion, missing the consensus of $1.56 billion.
- The growth in consumer fiber broadband was more than offset by declines in the video, voice, and wholesale services.
- Consumer revenue was $782 million, a 5.9% decline Y/Y, and Consumer fiber revenue declined 1.6% Y/Y to $405 million.
- Consumer fiber broadband revenue increased 10.9% Y/Y to $245 million, driven by solid growth in fiber broadband customers and average revenue per customer (ARPU).
- Business and wholesale revenue was $677 million, a 6% decline Y/Y, while the Business and wholesale fiber broadband revenue was $270 million, a 1.1% decline Y/Y.
- Frontier built Fiber to a record 192,000 locations, bringing total fiber passings to 4 million. Consumer fiber broadband net adds were 44,000, the tenth consecutive quarter of positive consumer fiber net adds, resulting in fiber broadband customer growth of 7.9%.
- The operating income declined 1.8% Y/Y to $272 million. The adjusted EBITDA margin contracted 300 bps to 37.9%, driven by revenue declines, partially offset by cost savings initiatives, including the emphasis on reducing video content costs.
- EPS of $0.77 beat the consensus of $0.50.
- Frontier held $2.1 billion in cash and equivalents and generated $468 million in operating cash flow.
- Outlook: Frontier sees FY22 adjusted EBITDA of $2 billion - $2.15 billion and targets Fiber builds to at least 1 million new locations.
- Price Action: FYBR shares traded higher by 2.28% at $26.44 on the last check Wednesday.
© 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
