Frontier Communications (NASDAQ: FYBR) continues to advance its Building Gigabit America initiative by continuing to construct its fiber network even as its acquisition by Verizon (NYSE: VZ) is not expected to close for some time. The Dallas, TX-based company operates its wireline network across 25 states and serves 15.4 million locations with a combination of legacy copper and fiber infrastructure. Under the Building Gigabit America program, Frontier has set a goal of reaching roughly 10 million fiber passings by the end of 2025.
In 3Q24, the company added 381,000 fiber passings to reach a total of 7.6 million fiber locations, up from 6.2 million fiber passings in 3Q23. Fiber broadband customers totaled 2.3 million at the end of 3Q24, up 19 percent YoY, on the strength of 108,000 fiber broadband consumer and business net adds in the quarter. In the last 12 months, Frontier has tallied 372,000 fiber net adds.
Total revenue of $1.49 billion in the quarter was up by nearly four percent YoY, as growth in fiber-based products was partly offset by declines in copper-based products. Adjusted EBITDA was up over four percent YoY to $549 million. Net cash from operations came in at $618 million.
Total cash capital expenditures were $699 million compared to $671 million in 3Q23. Year-to-date, the company has spent about $2 billion and provided guidance at the end of 2Q24 that it expected to spend approximately $3.0 billion to $3.1 billion for the full year 2024. That range is down from $3.2 billion spent in 2023.
Frontier is using various methods to reduce deployment costs while speeding up the number of installations. The company had previously talked about achieving a cost target of about $1,000 per location passed.
The Verizon transaction is expected to close by the first quarter of 2026, subject to receipt of requisite approval from Frontier’s stockholders and certain required regulatory approvals, and the satisfaction or waiver of the other conditions to the transaction described in the merger agreement. Due to the pending transaction, Frontier did not host a conference call to review the third quarter or provide a financial outlook.
By John Celentano, Inside Towers Business Editor
Reader Interactions