Frontier's CEO Celebrates Turnaround With Revenue Growth and Customer Base Expansion

Frontier Communications Parent, Inc (NASDAQ:FYBR) reported a fiscal first-quarter revenue growth of 1.5% year-on-year to $1.46 billion, versus the analyst consensus estimate of $1.44 billion.

The American telecommunications company's EPS of $0.00 beat the analyst consensus loss estimate of $(0.08). The stock gained after the print.

Declines in copper-based products offset the growth in fiber-based products. Consumer revenue was $787 million, a 3.4% growth year over year, and Consumer fiber revenue rose by 11.0% year over year to $484 million.

Also Read: Frontier Communications Stock Slides After Company Reveals Cyberattack: The Details

Consumer fiber broadband revenue increased 12.7% year over year to $505 million, driven by growth in fiber broadband customers and ARPU.

Business and wholesale revenue was $659 million, flattish Y/Y, while the Business and wholesale fiber revenue was $300 million, a 6.8% growth Y/Y.

Frontier built fiber to 322,000 locations, bringing total fiber passings to 6.8 million. Consumer fiber broadband net adds were 88,000, resulting in fiber broadband customer growth of 18%.

The adjusted EBITDA margin expanded by 140 bps to 37.4%. Frontier held $1.5 billion in cash and equivalents and used $(694) million in free cash flow as of March 31, 2024.

"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."

FY24 Outlook: Frontier reiterated adjusted EBITDA of $2.20 billion – $2.25 billion and targeted fiber builds to 1.3 million new locations.

Frontier Communications stock gained over 17% in the last 12 months. Investors can gain exposure to the stock via Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC) and SPDR S&P Telecom ETF (NYSE:XTL).

Price Action: FYBR shares traded higher by 7.29% at $25.75 at the last check Friday.

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This article Frontier's CEO Celebrates Turnaround With Revenue Growth and Customer Base Expansion originally appeared on Benzinga.com

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