Frontier Communications Earnings Were Ugly
Frontier Communications Corporation (NYSE:FTR) reported its first-quarter results Monday, with both revenue and earnings down compared to the previous year on decreases in the number of residential and business customers, switched access, data services, and video revenue.
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First-quarter revenue was $1.27 billion, off nearly 6 percent compared to last year’s revenue of $1.35 billion.
Net earnings were $26.8 million (3 cents a share) compared to $54.7 million (5 cents a share). Excluding items such as integration costs and severance costs, net earnings were $52.4 million (5 cents a share).
“Frontier’s successful systems conversion of the remaining nine states in March has enabled us to turn the page from acquisition integration to a focus on revenue growth, broadband penetration, and operational excellence,” said Maggie Wilderotter, Chairman and CEO of Frontier Communications. “Our solid first quarter results show progress on revenue stability, expense reductions and margin expansion. We are well on our way to achieving our 2012 guidance.”
The company had 3,038,900 residential customers and 302,100 business customers as at the end of March 2012. These were down from 3,333,306 residential customers and 333,396 business customers on the same date last year. Broadband customers numbered 1,775,900 at the end of March after adding a net 11,700 during the quarter, and were marginally better than the company’s 1,730,336 broadband customers in the year-ago period. Frontier had 561,900 video customers as of March 31, 2012, compared to 546,404 in the previous year, with a net add of 4,400 customers during the quarter.
The company kept its guidance unchanged for the full year 2012.
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