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Jun 30, 2024
Frontier Communications Q2 2024 Earnings Report
Frontier Communications reported a revenue increase and strong EBITDA growth, driven by record fiber broadband customer additions and ARPU growth.
Key Takeaways
Frontier Communications reported positive Q2 2024 results, marked by revenue growth, record fiber broadband net additions, and a significant increase in fiber broadband revenue. The company also raised the low end of its Adjusted EBITDA guidance following a strong first half performance.
Added a record 388,000 fiber passings, reaching 7.2 million total locations passed with fiber.
Achieved record 92,000 fiber broadband customer additions, resulting in an 18.6% year-over-year growth.
Revenue increased by 2.1% year-over-year to $1.48 billion, driven by growth in fiber-based products.
Adjusted EBITDA increased by 5.1% year-over-year to $560 million, driven by revenue growth and cost savings.
Frontier Communications
Frontier Communications
Frontier Communications Revenue by Segment
Revenue by Segment
Data and Internet services Revenue
CapyFin.comVoice services Revenue
CapyFin.comVideo services Revenue
CapyFin.comOther Revenue
CapyFin.comConsumer Revenue
CapyFin.comBusiness and Wholesale Revenue
CapyFin.comBroadband Fiber Revenue
CapyFin.comBroadband Copper Revenue
CapyFin.com Forward Guidance
Frontier updated its Adjusted EBITDA, net cash interest expense, and cash taxes guidance for 2024, while reaffirming all other operational and financial expectations.
Positive Outlook
- Adjusted EBITDA of $2.22 - $2.25 billion, an increase to the low end of the range from prior guidance of $2.20 - $2.25 billion
- Fiber passing additions of 1.3 million
- Cash capital investment of $3.00 - $3.20 billion
- Pension and OPEB expense of approximately $40 million (net of capitalization)
- Cash pension and OPEB contributions of approximately $125 million
Challenges Ahead
- Net cash interest payments of approximately $760 million, an increase from prior guidance of $750 million, reflecting the fiber securitization offering and term loan refinancing completed in July 2024
- The company faces risks related to its significant indebtedness and ability to incur more debt in the future.
- Economic uncertainty, volatility in financial markets, and rising interest rates could limit access to capital.
- Inflationary pressures on costs, including tight labor markets and increased fuel and electricity costs, could adversely impact financial condition.
- Potential information technology or data security breaches and competition from other providers pose ongoing challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income