Frontier Communications Q4 2023 Earnings Report
Key Takeaways
Frontier Communications reported Q4 2023 results, with revenue of $1.43 billion and net income of $17 million. The company achieved its first full year of EBITDA growth in more than a decade, driven by strong consumer fiber broadband revenue growth. Frontier is guiding to accelerated mid-single-digit Adjusted EBITDA growth in 2024.
Consumer fiber broadband revenue increased by more than 25%, driven by customer and ARPU growth.
Frontier reached a milestone of two million fiber broadband customers.
Adjusted EBITDA increased 4.0% year-over-year, driven by lower content expenses and cost savings.
Consumer fiber broadband customer churn decreased from 1.32% to 1.20%.
Frontier Communications
Frontier Communications
Frontier Communications Revenue by Segment
Forward Guidance
Frontier provided guidance for full year 2024, including Adjusted EBITDA of $2.20 - $2.25 billion, new fiber passings of 1.3 million and cash capital investment of $3.00 - $3.20 billion.
Positive Outlook
- Adjusted EBITDA of $2.20 - $2.25 billion
- New fiber passings of 1.3 million
- Cash capital investment of $3.00 - $3.20 billion
- Cash taxes of approximately $20 million
- Net cash interest payments of approximately $750 million
Challenges Ahead
- Significant indebtedness
- Economic uncertainty and rising interest rates
- Inflationary pressures on costs
- Potential information technology or data security breaches
- Competition from other providers