Frontier fibre build to reach 10 million by 2025 amid Q2 results
Frontier Communications confirms the acceleration its fibre network with a new objective to reach 10 million locations by the end of 2025.
To date, Frontier has completed the build of fibre to approximately 157,000 new locations during the second quarter of 2021, the company now aims to reach 600,000 new locations in 2021, totalling approximately 4 million fibre locations.
“The acceleration of our fibre network expansion is clear evidence that Frontier’s transformation is taking hold," said Nick Jeffery (pictured), president and chief executive officer of Frontier,
"Over the past several months, we’ve made real progress in executing our strategy – by adding world-class leadership, introducing a purpose-driven culture, improving the customer experience, and making our operations more efficient and sustainable."
“Early next year, we will start delivering 2 gigabit per second services, further stretching our performance lead to where only fibre can compete."
At the time of the announcement, Frontier also confirmed its financial results for Q2 for the period ended 30 June 2021.
The company reported consolidated revenue of $1.62 billion for the period, a decline of 7.9% compared to the same period of 2020. This is due to declining consumer copper subscribers and wholesale revenue, as well as the impact of fresh start accounting.
Operating income for the period was $298 million, while net income came in at $4.58 billion this is due to approximately $4.2 billion in gains caused by reorganisation and the extinguishment of debt.
Adjusted EBITDA was $633 million with a margin was 39.2%, compared to Adjusted EBITDA of $703 million and a Margin of 40.1% in the second quarter of 2020.
This year-on-year decline of $70 million was driven by revenue declines, offset in part by cost savings initiatives, including the emphasis on reducing video content costs.
Following the emergence from Chapter 11, Frontier currently has total liquidity of approximately $1.5 billion.
“Our second-quarter results reflect continuing momentum in our fibre expansion strategy, with all key fibre metrics in line or above expectations," added Jeffery.
"In particular, we accelerated our fibre build out, continued our customer momentum with another strong quarter of consumer fibre net adds, and reduced our consumer churn. Taken together, it was another strong quarter that positions Frontier well as we head into the second half of the year.”
Looking ahead, Frontier's full year expectations predict Adjusted EBITDA of between $2.4-$2.5 billion, capital expenditures of approximately $1.8 billion, taxes of roughly $50 million, interest payments of approximately $365 million, as well as pension and other post-employment benefits (OPEB) of approximately $70 million.