Frontier Sheds Another 71K Broadband Subs in Q2 2019

 

 

  • Frontier Communications
NORWALK, CT — Frontier Communications Corporation reported net broadband unit losses of 71,000 for the second quarter ended June 30, 2019.“We continue to strive to optimize our business by leveraging our best assets for future growth while managing the segments of our business in secular decline by executing on cost efficiency programs and selective capital investment. Although we achieved second quarter Adjusted EBITDA of $882 million, we continue to be challenged by ongoing revenue declines, content cost escalations, higher labor costs, and other pressures across the business,” said Dan McCarthy, president and CEO.Consolidated revenue for the second quarter of 2019 was $2.07 billion, as compared with $2.10 billion in the first quarter. Within second quarter consolidated revenue, consumer revenue was $1.05 billion, commercial revenue was $922 million, and subsidy revenue was $95 million.
 
Net loss for the second quarter of 2019 was $5.32 billion, representing a net loss per common share of $51.07. Net loss included a $5.45 billion goodwill impairment or $4.93 billion net of tax, a $384 million loss on the anticipated sale of operations and assets in Washington, Oregon, Idaho, and Montana, and $31 million of restructuring expenses. The impairment reflects, among other things, our expectation of continued revenue declines because of pressures on the business, reduced expectations for the transformation program, the long-term sustainability of our capital structure, a lower outlook for our overall industry, and the cumulative impact of all these factors on business trends going forward. Our goodwill balance as of June 30, 2019 is $276 million, and further impairments are possible as a result of ongoing reviews of the business and operations.

 

Consumer Business Highlights

Revenue of $1.05 billion. The sequential decline was driven by customer losses.

Consumer fiber broadband net losses were 10,000 and consumer copper broadband net losses were 46,000, in each case reflecting seasonality and increased churn. Both Consumer fiber broadband and Consumer copper broadband revenue declined sequentially, reversing the trend in the first quarter. Broadband accounts for more than 40% of Consumer revenue.

Average Revenue Per Customer (ARPC) of $88.68, a sequential decrease largely reflecting video customer declines.



 

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