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Sep 30, 2023
Frontier Communications Q3 2023 Earnings Report
Frontier reported strong operational results, including consumer revenue growth and EBITDA acceleration.
Key Takeaways
Frontier Communications reported third-quarter 2023 results, featuring the first consumer revenue increase as a new public company and an acceleration in EBITDA growth. The company's focus on fiber expansion and customer growth contributed to the positive results.
Passed 332,000 new fiber locations.
Added 79,000 fiber broadband customers, a 19% year-over-year increase.
Revenue reached $1.44 billion, with a net income of $11 million and Adjusted EBITDA of $526 million.
Capital expenditures totaled $671 million.
Revenue by Segment
Forward Guidance
Frontier reaffirmed its operational and financial expectations for 2023, while updating the net cash interest payments guidance.
Positive Outlook
- Adjusted EBITDA of $2.11 - $2.16 billion.
- New fiber passings of 1.3 million.
- Cash capital expenditures of $3.00 - $3.20 billion.
- Cash taxes of approximately $20 million.
- Pension and OPEB expense of approximately $50 million (net of capitalization).
Challenges Ahead
- Net cash interest payments of approximately $700 million, an increase from prior guidance of $655 million, reflecting the $1.6 billion of debt raised in August 2023.
- Economic uncertainty could limit access to capital.
- Inflationary pressures on costs.
- Potential disruptions in the supply chain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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