Frontier Communications Parent, Inc FYBR reported a fiscal second-quarter revenue growth of 2.1% year-on-year to $1.48 billion, beating the analyst consensus estimate of $1.453 billion. The American telecom company’s EPS loss of $(0.49) missed the analyst consensus loss estimate of $(0.16).
Declines in copper-based products partially offset the growth in fiber-based products.
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Consumer revenue was $789 million, a 1.8% growth year over year, and Consumer fiber revenue rose by 13.2% year over year to $523 million.
Consumer fiber broadband revenue increased 22.8% year over year to $393 million, driven by growth in fiber broadband customers and ARPU.
Business and wholesale revenue was $677 million, up by 3.7 Y/Y, while the Business and wholesale fiber revenue was $317 million, a 11.6% growth Y/Y.
Frontier built fiber to 388,000 locations, bringing total fiber passings to 7.2 million. Consumer fiber broadband net adds were 92,000, resulting in fiber broadband customer growth of 18.6%.
The adjusted EBITDA margin expanded by 100 bps to 37.8%. Frontier held $1.2 billion in cash and equivalents and used $(304) million in free cash flow as of June 30, 2024.
“We continued to see strong demand for our high-speed, reliable fiber internet which drove record fiber broadband net additions in the second quarter. As a result, we delivered our second successive quarter of year-over-year revenue growth and our fourth consecutive quarter of Adjusted EBITDA growth,” CEO Nick Jeffery said.
FY24 Outlook: Frontier expects adjusted EBITDA of $2.22 billion–$2.25 billion (prior $2.20 billion–$2.25 billion) and targets fiber builds to 1.3 million new locations.
Frontier Communications stock gained 60% in the last 12 months.
Price Action: FYBR shares traded lower by 3.74% at $27.79 at the last check on Friday.
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