Frontier Communications Posts Higher Profit

By Dow Jones Business News, 
A A A
Share |


By Anna Prior

Frontier Communications Corp.'s fourth-quarter profit more than doubled as the regional telecommunications company year-ago period included a loss on the early extinguishment of debt that helped mask an overall drop in revenue for the latest quarter.

Frontier roughly tripled its size in 2010 after buying nearly five million rural landlines from Verizon Communications Inc., driving sharp revenue growth for the following year. But in recent quarters, a decline in the number of the company's residential and business subscribers had pressured results. Still, the pace of customer losses has been slowing in recent quarters.

"Customer retention, average revenue per customer and broadband market share all increased in 2013 and we implemented network improvements and cost efficiencies to sustain this positive operating trend in 2014," said Chief Executive Maggie Wilderotter.

For the latest quarter, Frontier Communications reported a profit of $67.8 million, or seven cents a share, compared with a profit of $24.9 million, or four cents a share, a year earlier. Excluding acquisition and integration costs, pension settlement costs and other items, adjusted per-share earnings were up at seven cents from six cents. Revenue fell 4.2% to $1.18 billion.

Analysts polled by Thomson Reuters expected earnings of two cents a share on revenue of $1.18 billion.

As of Dec. 31, Frontier had 270,800 business customers and about 2.8 million residential customers. The company lost roughly 18,700 customers during the quarter, compared with the loss of 45,100 customers during the year-earlier period.

Looking ahead, the company expects capital expenditures of $575 million to $625 million and free cash flow for Frontier business operations of $725 million to $775 million for the full year.

Write to Anna Prior at anna.prior@wsj.com

Order free Annual Report for Frontier Communications Corp.

Visit http://djnweurope.ar.wilink.com/?ticker=US35906A1088 or call +44 (0)208 391 6028

Order free Annual Report for Verizon Communications, Inc.

Visit http://djnweurope.ar.wilink.com/?ticker=US92343V1044 or call +44 (0)208 391 6028


  (END) Dow Jones Newswires
  02-24-141656ET
  Copyright (c) 2014 Dow Jones & Company, Inc.


This article appears in: News Headlines

Referenced Stocks: FTR , VZ

Dow Jones Business News


More from Dow Jones Business News:

Related Videos

Stocks

Referenced

80%
72%

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM