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Dec 31, 2021

Frontier Communications Q4 2021 Earnings Report

Frontier Communications reported record operational results as it becomes a fiber-first company.

Key Takeaways

Frontier Communications reported strong Q4 2021 results, marked by record operational achievements as the company transitions to a fiber-first model. The company gained momentum and hit an inflection point, reaching positive total broadband net adds for the first time in more than five years.

Built fiber to a record 192,000 locations.

Added a record 45,000 fiber broadband customer net additions, reaching an inflection point in positive total broadband customer net additions for the first time in more than five years.

Delivered record-low churn across both fiber and copper broadband customers.

Achieved positive fiber Net Promoter Scores for the first time in company history.

Total Revenue
$1.54B
Previous year: $1.7B
-9.0%
EPS
$0.77
Previous year: -$0.48
-260.4%
Customer monthly churn
1.32%
Previous year: 1.56%
-15.4%
Gross Profit
$997M
Previous year: $1.07B
-6.5%
Cash and Equivalents
$2.13B
Previous year: $1.83B
+16.3%
Total Assets
$16.5B
Previous year: $16.8B
-1.9%

Frontier Communications

Frontier Communications

Frontier Communications Revenue by Segment

Forward Guidance

Frontier provided guidance for the full year 2022.

Positive Outlook

  • Adjusted EBITDA of $2.00 - $2.15 billion
  • Fiber build to at least 1 million new locations
  • Cash capital expenditures of $2.40 - $2.50 billion
  • Cash taxes of approximately $20 million
  • Cash interest payments of approximately $430 million

Challenges Ahead

  • Cash Pension and OPEB expense of approximately $75 million (net of capitalization)
  • Cash pension and OPEB contributions, including a catch-up from contribution waivers during bankruptcy, of approximately $135 million (net of capitalization)