Financial Data and Key Metrics - Q2 revenue was $1.48 billion, up 2% YoY, marking the second consecutive quarter of revenue growth and the fastest organic growth in over a decade [4][17] - Adjusted EBITDA grew by 5% to $560 million, with EBITDA margins expanding [4][17] - Net loss of $123 million, primarily due to a non-cash pension remeasurement and a $25 million one-time legal settlement [17] - Net cash from operations was $374 million, bringing the trailing 12-month total to $1.4 billion [17] - Fiber broadband revenue grew by 21%, offsetting declines in legacy products [19] Business Line Data and Key Metrics - Fiber broadband customers grew by 19% YoY, with a record 92,000 net adds in Q2 [6][17] - Fiber penetration in base markets reached 45.3%, up 190 basis points YoY [17] - ARPU grew by 3.5% YoY, driven by faster speed tiers, annual price adjustments, and value-added services [18] - Over 60% of new customers chose speeds of 1 gig or faster, and over 50% purchased at least one value-added service [18] - Consumer revenue grew for the fourth consecutive quarter, while business and wholesale revenue grew 4% [19] Market Data and Key Metrics - The company added a record 388,000 fiber passings in Q2, bringing the total to over 7 million passings [5][16] - Fiber securitization raised $750 million, with a weighted average yield of 7.4%, reducing the cost of capital [21][22] - The company expects to achieve 1.3 million fiber passings in 2024 [16] Company Strategy and Industry Competition - The company's strategy focuses on four pillars: building fiber, selling fiber, improving customer service, and increasing operational efficiency [5] - Fiber is positioned as a superior product compared to legacy cable, with a Net Promoter Score (NPS) six times higher than the closest cable competitor [11] - The company has achieved $580 million in cost savings since 2021, driven by operational efficiency and customer service improvements [16][79] - The company is the largest pureplay fiber provider in the U.S., with nearly twice as many passings as the next closest competitor [5] Management Commentary on Operating Environment and Future Outlook - Management is confident in the company's ability to achieve sustainable growth, with fiber revenue growth and disciplined cost management driving EBITDA growth [12][13] - The company expects to maintain strong operational momentum, hit revenue growth milestones, and accelerate EBITDA growth in 2024 [13] - Management highlighted the successful trial of 100-gigabit speeds over a single strand of fiber, showcasing the company's technological leadership [15] Other Important Information - The company completed its second fiber securitization, raising $750 million and extending the maturity of its term loan to 2031 [16][21] - Capital investment declined to $678 million in Q2, with expectations of flat investment in Q3 and Q4 [20] - The company raised the low end of its 2024 EBITDA guidance to $2.22 billion to $2.25 billion, representing 5% growth at the midpoint [23] Q&A Session Summary Question: Impact of Competitors' Fiber Buildouts on Frontier's Plans - Management is encouraged by industry interest in fiber but does not see it materially impacting Frontier's build plans, as the company has scaled its build to align with sales and service capabilities [25][26] Question: Broadband Ads Strength and ARPU Growth - Broadband ads were strong, with a record 92,000 net adds in Q2, driven by expanding fiber footprint and strong sales momentum [28][29] - ARPU growth decelerated to 3.5% YoY in Q2, with expectations of flat sequential growth in Q3 due to ACP transition plans, followed by a pickup in Q4 [29][30] Question: Gross Ads Growth and Cost to Acquire - Gross ads grew by nearly 30% YoY, driven by a better product and improved sales channel optimization [38][40] - The company expects to maintain cost to connect within the $600 to $800 range, with self-install reducing costs over time [43][44] Question: Consumer Fiber ARPU and EBITDA Guidance - Consumer fiber ARPU is expected to be flat sequentially in Q3, with growth resuming in Q4 [47] - EBITDA guidance was raised, with 5% growth expected in the second half, driven by strong operational momentum [47][48] Question: Strategic Review and Capital Allocation - The strategic review is ongoing, with options including joint ventures, divestitures, and mergers, as the company approaches its goal of 10 million fiber passings [58][59] - Capital allocation focuses on reducing the cost of capital, maintaining liquidity, and extending maturities [64][65] Question: SG&A Expense and Video Business - SG&A expense was elevated due to growth-related marketing and commissions, but cost savings in other areas improved margins [67][68] - The video business continues to decline, with the company focusing on over-the-top partnerships like YouTube TV [68][69] Question: Fiber ARPU and Low-End Macro Trends - Fiber ARPU is bifurcated, with over 60% of customers taking gig-plus speeds, while ACP transition plans impact lower-end ARPU [73][74] - No softening is observed at the low end of the consumer market, with strong demand for fiber products [72] Question: Fixed Mobile Convergence and Customer Care Improvements - The company is prepared to launch a wireless offer but sees no immediate need, as fiber growth remains the priority [78][79] - Customer service improvements have reduced calls by 50% and driven significant cost savings [79][80] Question: Vintage Penetration Disclosure - The company simplified its penetration reporting to align with industry peers and better reflect how the business is managed [81][82]

For the quarter ended June 2024, Frontier Communications (FYBR) reported revenue of $1.48 billion, up 2.1% over the same period last year. EPS came in at -$0.49, compared to -$0.01 in the year-ago quarter. The reported revenue represents a surprise of +1.40% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being -$0.11, the EPS surprise was -345.45%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Frontier Communications (FYBR) came out with a quarterly loss of $0.49 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -345.45%. A quarter ago, it was expected that this telecommunications company would post a loss of $0.01 per share when it actually produced break-even earnings, delivering a surprise of 100%. Over the last four q ...

FRONTIER SECOND QUARTER 2024 RESULTS AUGUST 2, 2024 © Frontier Communications. FRONTIER Safe Harbor Statement Forward-Looking Statements This presentation contains "forward-looking statements" related to future events, including our 2024 outlook and guidance. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, future operating and financial performance, our ability to implement our growth strategy, our ability to comply with the covenants i ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 2. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $1.46 billion, up 0.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 7.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassesse ...

Part I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Frontier Communications Parent, Inc.'s unaudited Q1 2024 consolidated financial statements detail key financial performance and position [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Summary ($ in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,296 | $1,125 | | Short-term investments | $225 | $1,075 | | Total current assets | $2,081 | $2,781 | | Property, plant and equipment, net | $14,296 | $13,933 | | **Total assets** | **$20,197** | **$20,693** | | **Liabilities & Equity** | | | | Total current liabilities | $1,940 | $2,275 | | Long-term debt | $11,240 | $11,246 | | **Total liabilities** | **$14,938** | **$15,414** | | **Total equity** | **$5,259** | **$5,279** | | **Total liabilities and equity** | **$20,197** | **$20,693** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Summary ($ in millions, except per-share amounts) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $1,462 | $1,440 | | Total operating expenses | $1,372 | $1,297 | | **Operating income** | **$90** | **$143** | | Interest expense | ($199) | ($141) | | Investment and other income, net | $112 | $2 | | **Net income** | **$1** | **$3** | | Basic EPS | $0.00 | $0.01 | | Diluted EPS | $0.00 | $0.01 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary ($ in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided from operating activities | $335 | $389 | | Net cash provided from (used by) investing activities | $186 | ($304) | | Net cash (used by) provided from financing activities | ($423) | $725 | | **Increase in cash, cash equivalents, and restricted cash** | **$98** | **$810** | - Capital expenditures decreased significantly to **$666 million** in Q1 2024 from **$1,154 million** in Q1 2023[22](index=22&type=chunk) - Financing activities used **$423 million** in cash in Q1 2024, a sharp contrast to the **$750 million** in net proceeds from long-term debt borrowings in Q1 2023[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Revenue by Category ($ in millions) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Data and Internet services | $947 | $862 | | Voice services | $321 | $356 | | Video services | $94 | $117 | | Other | $84 | $83 | | Subsidy and other revenue | $16 | $22 | | **Total revenue** | **$1,462** | **$1,440** | Revenue by Customer Type ($ in millions) | Customer Type | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Consumer | $787 | $761 | | Business and wholesale | $659 | $657 | | Subsidy and other revenue | $16 | $22 | | **Total revenue** | **$1,462** | **$1,440** | - On **April 14, 2024**, the company detected unauthorized third-party access to its IT environment, likely a **cybercrime group**, causing operational disruption and access to personally identifiable information, though no material financial impact is expected[125](index=125&type=chunk) - Restructuring charges in Q1 2024 were **$34 million**, primarily for severance, employee costs, and pension/OPEB enhancements related to a voluntary separation program, a significant increase from **$8 million** in Q1 2023[88](index=88&type=chunk)[89](index=89&type=chunk) - Investment and other income was **$112 million** in Q1 2024, largely due to a **$74 million** pension remeasurement gain and a **$9 million** OPEB remeasurement gain resulting from a voluntary separation plan[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic fiber deployment, Q1 2024 financial performance, liquidity, and a cyber incident [Business Overview and Cyber Incident](index=32&type=section&id=Business%20Overview%20and%20Cyber%20Incident) - The company's strategy focuses on four priorities: fiber deployment, fiber penetration, improving customer experience, and operational efficiency[152](index=152&type=chunk) - Q1 2024 achievements include adding **322,000** fiber passings, reaching **6.8 million** total fiber locations, and adding **88,000** fiber broadband customers[154](index=154&type=chunk) - A cyber incident was detected on **April 14, 2024**, where a third party, likely a **cybercrime group**, gained unauthorized access to the IT environment and personally identifiable information; the company believes the incident is contained and not expected to materially impact financial results[153](index=153&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Key Customer Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Fiber Broadband** | | | | | Consumer Customers (thousands) | 1,963 | 1,659 | 18% | | Consumer Net Additions (thousands) | 85 | 84 | 1% | | Consumer ARPU | $65.18 | $61.44 | 6% | | **Copper Broadband** | | | | | Consumer Customers (thousands) | 771 | 987 | (22)% | | Consumer Net Losses (thousands) | (51) | (56) | (9)% | | Consumer ARPU | $56.16 | $48.88 | 15% | Revenue by Technology (YoY, $ in millions) | Technology | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Fiber | $805 | $729 | 10% | | Copper | $641 | $689 | (7)% | | **Total Revenue from Customers** | **$1,446** | **$1,418** | **2%** | - Operating income decreased by **$53 million (37%)** YoY, primarily due to higher depreciation and amortization (**+18%**), increased restructuring costs (**+325%**), and higher SG&A expenses (**+3%**)[156](index=156&type=chunk)[157](index=157&type=chunk)[202](index=202&type=chunk) - Cost of service decreased by **$20 million (4%)** YoY, driven by lower video content costs from customer declines and non-renewal of certain content agreements[204](index=204&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) - As of **March 31, 2024**, total liquidity was approximately **$2.585 billion**, consisting of **$1.296 billion** in cash, **$225 million** in short-term investments, **$500 million** in available Variable Funding Notes, and **$564 million** in available revolving credit facility capacity[219](index=219&type=chunk) - Cash flow from operations decreased by **$54 million** YoY to **$335 million** for Q1 2024, mainly due to changes in pension/OPEB liabilities and working capital[223](index=223&type=chunk) - Capital expenditures for Q1 2024 were **$666 million**, a significant decrease from **$1,154 million** in Q1 2023; including **$363 million** in vendor financing payments, total capital investment was **$1.029 billion**[226](index=226&type=chunk)[231](index=231&type=chunk) - The company was in compliance with all debt covenants as of **March 31, 2024**[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's primary market risks, including interest rate fluctuations and equity price exposure - As of **March 31, 2024**, **87%** of the company's total debt had fixed interest rates, minimizing exposure to interest rate changes[269](index=269&type=chunk) - The only floating-rate debt is a **$1.4 billion** term loan; a **100 basis point** increase in the SOFR would result in approximately **$14 million** of additional annual interest expense[270](index=270&type=chunk) - Equity price exposure is primarily limited to the pension plan assets, which increased by **$93 million** to **$2.361 billion** in Q1 2024[275](index=275&type=chunk)[276](index=276&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that as of **March 31, 2024**, the company's disclosure controls and procedures were effective[277](index=277&type=chunk) - There were no changes in internal control over financial reporting during Q1 2024 that materially affected, or are reasonably likely to materially affect, internal controls[278](index=278&type=chunk) Part II. Other Information [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and investigations, which management believes will not materially affect its financial condition - The company is party to various legal proceedings and investigations but believes their resolution will not have a material adverse effect on its financial condition[281](index=281&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section updates cybersecurity risk factors, specifically addressing the April 14, 2024 incident and its potential impact - This section updates the risk factor related to network and information system breaches, specifically citing the **April 14, 2024** cyber-attack[282](index=282&type=chunk) - The company determined a **cybercrime group** gained unauthorized access to IT systems and personally identifiable information, leading to an operational disruption that could be considered material[287](index=287&type=chunk) - Despite containment efforts, the company acknowledges that any security incident could result in misappropriation of data, financial loss, reputational harm, and legal claims, with no assurance that the impact would not be material[288](index=288&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications and iXBRL financial data - The exhibits filed with the report include CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, as well as iXBRL data files[290](index=290&type=chunk)

Exhibit 99.1 Frontier Reports First-Quarter 2024 Results DALLAS, Texas, May 3, 2024 -- Frontier Communications Parent, Inc. (NASDAQ: FYBR) ("Frontier") 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 an ...

Investors are always looking for stocks that are poised to beat at earnings season and Frontier Communications Parent, Inc. (FYBR) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Frontier Communications is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date informat ...

The market expects Frontier Communications (FYBR) to deliver a year-over-year decline in earnings on flat revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be ...

Frontier Communications (FYBR) reported $1.43 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 0.8%. EPS of $0.07 for the same period compares to $0.63 a year ago.The reported revenue represents a surprise of -0.04% over the Zacks Consensus Estimate of $1.43 billion. With the consensus EPS estimate being -$0.04, the EPS surprise was +275.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...