In the company’s quarterly earnings call, Frontier Communications reported a net loss of $80 million the first quarter after its $10.5 billion takeover of Verizon’s landline, Internet and cable operations in Florida, Texas and California, reports the Tampa Bay Times. It also reported second quarter revenue of $2.6 billion, which is double its revenue in the same quarter last year, reflecting the impact of the Verizon deal.
Although the company reported a net loss, analysts predict a stronger third quarter and remainder of year, because of less integration work and an anticipated targeted marketing campaign, according to Senior Analyst at Wells Fargo Jennifer Fritzsche.
“In short, nothing in this quarter we saw as a ‘cliffing’ moment for the company, as we knew the first quarter out of the box would be messy – this didn’t disappoint in that regard!,” Fritzsche said.
Frontier received a large volume of negative publicity in the months following the Verizon deal. Thousands of Floridians complained about losing services after the company acquired Verizon’s assets.
In May and June, Florida Attorney General Pam Bondi received over 2,000 complaints from angry customers. In response, Bondi announced investigators from the Tampa Consumer Protection Division will contact the company daily.
Reader Interactions