Frontier Communications Parent reported a decrease in revenue for the fourth quarter, attributed to legacy declines in its consumer business. However, the expanding fiber-optic network helped offset these declines.
Financial Overview
- Profit: The broadband provider reported a fourth-quarter profit of $17 million, down from $155 million in the same period a year earlier.
- Earnings Per Share: Earnings per share were 7 cents, compared to 63 cents last year.
- Analysts' Expectations: Analysts expected earnings of a penny a share.
- Revenue: Revenue slightly decreased by less than 1% to $1.43 billion, with analysts expecting $1.42 billion.
Performance Highlights
- Consumer revenue increased by over 1% to $774 million, driven by growth in the fiber business which offset copper declines.
- Consumer fiber broadband revenue surged by more than 25% to $354 million due to customer gains and higher average revenue per user.
- In the fourth quarter, Frontier expanded its fiber network, passing 333,000 new locations and adding 84,000 new fiber broadband customers.
- CEO Nick Jeffery expressed confidence in the company's fiber growth engine, stating that their strategy is proving successful.
- Frontier aims to reach 1.3 million new locations with its fiber network in 2024, building upon the 6.5 million total fiber locations passed last year.
Future Plans
Frontier Communications announced plans to explore opportunities for shareholder value enhancement, including divestitures, mergers, joint ventures, and other potential strategies.
