•
Jun 30, 2022

Frontier Communications Q2 2022 Earnings Report

Frontier Communications reported Q2 2022 financial results, demonstrating sequential EBITDA growth and raised full-year guidance.

Key Takeaways

Frontier Communications reported Q2 2022 results with a revenue of $1.46 billion and a net income of $101 million. The company saw sequential EBITDA growth and added 54,000 fiber broadband customers. They also raised their full-year guidance.

Built fiber to a record 281,000 locations.

Added 54,000 fiber broadband customer net additions, resulting in fiber broadband customer growth of 13.4% compared with the second quarter of 2021.

Reported revenue of $1.46 billion and net income of $101 million.

Raised $1.20 billion of debt in May, contributing to liquidity of approximately $3.70 billion.

Total Revenue
$1.46B
Previous year: $1.8B
-19.0%
EPS
$0.41
Previous year: -$0.914
-144.8%
Customer monthly churn
1.43%
Previous year: 1.53%
-6.5%
Gross Profit
$913M
Previous year: $897M
+1.8%
Cash and Equivalents
$678M
Total Assets
$18B

Frontier Communications

Frontier Communications

Frontier Communications Revenue by Segment

Forward Guidance

Frontier increased its operational and financial guidance expectations for 2022.

Positive Outlook

  • Adjusted EBITDA of $2.05 - $2.15 billion, an increase from prior guidance of $2.00 - $2.15 billion
  • Fiber build of 1.1 - 1.2 million new locations, an increase from prior guidance of 1.0 million new locations
  • Cash capital expenditures of $2.50 - $2.60 billion, an increase from prior guidance of $2.40 - $2.50 billion due to the accelerated fiber build
  • Cash taxes of approximately $20 million, unchanged from prior guidance
  • Cash pension and OPEB expense of approximately $75 million (net of capitalization), unchanged from prior guidance

Challenges Ahead

  • Net cash interest payments of approximately $485 million, an increase from prior guidance of $430 million to reflect the $1.20 billion of debt raised in May
  • Not enough information to provide 4 more negatives.