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Frontier Reports First-Quarter 2024 Results

May 3, 2024

DALLAS–(BUSINESS WIRE)–Frontier Communications Parent, Inc. (NASDAQ: FYBR) reported first-quarter 2024 results today. 

“We had a strong start to the year and achieved another major inflection point. We grew revenue year-over-year for the first time since 2015 and delivered our third consecutive quarter of Adjusted EBITDA growth,” said Nick Jeffery, President and Chief Executive Officer of Frontier. “We also grew our customer base and increased ARPU in the quarter, resulting in a 24% increase in fiber broadband revenue.”

Jeffery continued, “Our first-quarter results perfectly illustrate how our fast-growing fiber business is systematically improving our financial performance. Thanks to our team’s relentless execution, we’re in a strong position to keep adding value to our customers and deliver accelerated growth in 2024.”

First-Quarter 2024 Highlights

  • Added 322,000 fiber passings to reach 6.8 million total locations passed with fiber
  • Added 88,000 fiber broadband customers, resulting in fiber broadband customer growth of 18% year-over-year
  • Revenue of $1.46 billion increased 1.5% year-over-year as growth in fiber-based products was partly offset by declines in copper-based products
  • Operating income of $90 million and net income of $1 million
  • Adjusted EBITDA of $547 million increased 5.4% year-over-year driven by revenue growth and cost savings1
  • Cash capital expenditures of $666 million plus $363 million of vendor financing payments, for total cash capital investment of $1.0 billion2
  • Generated net cash from operations of $335 million

First-Quarter 2024 Consumer Results

  • Consumer revenue of $787 million increased 3.4% year-over-year as growth in fiber was partly offset by declines in copper
  • Consumer fiber revenue of $505 million increased 12.7% year-over-year as growth in broadband was partly offset by declines in video and voice
  • Consumer fiber broadband revenue of $375 million increased 25.8% year-over-year driven by growth in both fiber broadband customers and ARPU
  • Consumer fiber broadband customer net additions of 85,000 resulted in consumer fiber broadband customer growth of 18.3% year-over-year
  • Consumer fiber broadband customer churn of 1.24% compared to 1.20% in the first quarter of 2023
  • Consumer fiber broadband ARPU of $65.18 increased 6.1% year-over-year

First-Quarter 2024 Business and Wholesale Results

  • Business and Wholesale revenue of $659 million was stable year-over-year as growth in fiber was largely offset by declines in copper
  • Business and Wholesale fiber revenue of $300 million increased 6.8% year-over-year as growth in data was partly offset by declines in voice
  • Business and Wholesale fiber broadband customer net additions of 3,000 resulted in Business and Wholesale fiber broadband customer growth of 11.9% year-over-year
  • Business and Wholesale fiber broadband customer churn of 1.32% compared to 1.43% in the first quarter of 20233
  • Business and Wholesale fiber broadband ARPU of $98.40 decreased 3.5% year-over-year4

Capital Structure

As of March 31, 2024, Frontier had total liquidity of $2.6 billion, including a cash and short-term investments balance of approximately $1.5 billion, $0.6 billion of available borrowing capacity on its revolving credit facility, and $0.5 billion of available borrowing capacity on its variable funding notes facility, subject to customary drawing conditions. Frontier’s net leverage ratio on March 31, 2024, was approximately 4.5x5. Frontier has no long-term debt maturities prior to 2027.

2024 Outlook6

Frontier today reaffirmed all operational and financial expectations for 2024.

Frontier’s guidance for the full-year 2024 is:

  • Adjusted EBITDA of $2.20 – $2.25 billion1
  • Fiber passing additions of 1.3 million
  • Cash capital investment of $3.00 – $3.20 billion2
  • Cash taxes of approximately $20 million
  • Net cash interest payments of approximately $750 million
  • Pension and OPEB expense of approximately $40 million (net of capitalization)
  • Cash pension and OPEB contributions of approximately $125 million

About Frontier

Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information, visit www.frontier.com.