Frontier Communications(US:FYBR)2025-02-20 21:20Revenue Growth - Frontier achieved full-year organic revenue growth for the first time in over 15 years, driven by a 19.2% increase in fiber customers and a 13.5% increase in fiber revenues[3]. - The company reported total revenue of $5.94 billion for the full year 2024, with operating income of $353 million and Adjusted EBITDA of $2.25 billion[7]. - For the fourth quarter of 2024, revenue was $1.51 billion, a 5.6% increase year-over-year, with Adjusted EBITDA of $595 million, up 8.4% year-over-year[11]. - Revenue for Q4 2024 was $1,506 million, up from $1,426 million in Q4 2023, representing a 5.6% increase[31]. - Total revenue for the year ended December 31, 2024, was $5,937 million, compared to $5,751 million in 2023, reflecting a 3.2% growth[33]. Customer Growth - In 2024, Frontier added a record 385,000 fiber broadband customers, resulting in a year-over-year growth of 19.2%[7]. - The company added 97,000 fiber broadband customers in Q4 2024, resulting in a customer growth of 19.8% year-over-year[11]. - Broadband customers increased to 3,094 thousand, up from 2,943 thousand year-over-year, representing a growth of 5.1%[37]. - Net customer additions for broadband were 37 thousand in Q4 2024, compared to 30 thousand in Q4 2023, reflecting a 23.3% increase[37]. - The number of broadband customers at the end of December 2024 was 2,861 thousand, up from 2,700 thousand a year earlier, indicating a 5.9% increase[49]. Financial Performance - The company generated net cash from operations of $1.62 billion for the full year 2024[11]. - Net cash provided from operating activities for the year was $1,621 million, an increase from $1,344 million in the previous year, representing a growth of 20.6%[43]. - Operating free cash flow for the year ended December 31, 2024, was $(1,625) million, an improvement from $(1,871) million in 2023[45]. - The company reported a net loss of $118 million for Q4 2024, compared to a net income of $17 million in Q4 2023[41]. - For the three months ended December 31, 2024, the net loss was $118 million compared to a net loss of $82 million for the previous quarter[45]. Capital Expenditures and Investments - Frontier's total capital investment for 2024 was $3.25 billion, including cash capital expenditures of $2.78 billion[7]. - Capital expenditures for Q4 2024 were $792 million, an increase from $329 million in Q4 2023[31]. - Capital expenditures for the year were $2,783 million, down from $3,211 million year-over-year, a reduction of 13.3%[43]. Debt and Liquidity - As of December 31, 2024, Frontier had total liquidity of $2.9 billion, with a net leverage ratio of approximately 4.8x[12]. - Long-term debt increased to $11,551 million from $11,246 million year-over-year, reflecting a rise of 2.7%[39]. - The net leverage ratio stood at 4.8x as of December 31, 2024, indicating a stable leverage position[39]. Future Prospects - Frontier is in the process of being acquired by Verizon, with the transaction expected to close by the first quarter of 2026[13][14]. - The company is pursuing a proposed merger with Verizon, which may impact future operational and financial performance[29]. Operational Metrics - Consumer fiber broadband ARPU increased to $65.54, reflecting a 3.4% year-over-year growth[7]. - Average monthly consumer revenue per customer rose to $83.58, up from $82.54 year-over-year, indicating a growth of 1.26%[37]. - Customer monthly churn improved to 1.68% from 1.43% year-over-year, showing a decrease of 0.25 percentage points[37]. - The estimated total fiber penetration rate as of December 31, 2024, was 30.6%, compared to 30.2% in the previous quarter[49]. - The EBITDA margin for the quarter ended December 31, 2024, was 34.2%, slightly up from 33.3% in the previous quarter[45].