Frontier revenue dips but net losses smaller
Frontier Communications saw a slight dip in third quarter revenue but smaller net losses year-over year, the company announced Oct. 31.
Revenue reached $2.25 billion, down slightly from the previous quarter and the third quarter of 2016. But the first nine months of the year saw a 6.5 percent increase in revenue over the same period the prior year. Net losses fell from $80 million in the third quarter of 2016 to $38 million in the most recent quarter, or $1.19 per share.
Operating expenses fell 14 percent from the previous year. The company also saw a slowdown in customer turnover, as it added consumers in the California, Texas and Florida regions it acquired from Verizon in April of 2016.
“Our third quarter results highlight the ongoing stabilization across our business as we focus on executing our strategy,” President and CEO Dan McCarthy said in a news release. “During the quarter, we were pleased with the continued improvement in subscriber trends and churn in our California, Texas and Florida markets, ongoing stabilization in our commercial business, and continued operating efficiencies.”
The company had achieved $19 million of its planned cost savings and synergies, McCarthy said on the conference call, and remained on track to hit its $350 million goal by mid-2018.
Impacts from storms in the Texas and Florida regions were expected to reach $28 million in operating expenses for the full year, with service returned to a majority of customers. Capital expenditures for the year were forecast to grow to $1.15 billion to $1.2 billion.
Frontier had cash and cash equivalents of $286 million, with $1.79 billion in current liabilities. Shares for the company rose nearly 2 percent ahead of the announcement, ending Oct. 31 at $12.11.
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