Frontier Communications Parent, Inc. (NASDAQ: FYBR) reported second-quarter 2022 results on Friday. The company reported consolidated revenue for the quarter of $1.46 billion, an 8.7 percent decline compared with the quarter ended June 30, 2021, as growth in consumer fiber broadband was offset by declines in subsidy, video, voice, and wholesale. Capital expenditures were $641 million, an increase from $385 million in the second quarter of 2021, as fiber expansion initiatives accelerated.
“We are deploying fiber and connecting people to the digital society at a record pace,” said Frontier President/CEO Nick Jeffery. “We have the second-largest fiber build in the country and this expansion is unlocking new opportunities to meet increased consumer demand for blazing-fast fiber broadband while driving efficiencies across our business,” he said. “In the second quarter, we saw the impact of our operational success translate into financial growth, and we delivered sequential EBITDA growth ahead of schedule. Our team’s operational discipline over the last year has improved Frontier’s financial trajectory and positioned us as the preferred digital partner for customers across our footprint.”
Adjusted EBITDA was $535 million, representing sequential growth of 5.1 percent from the first quarter of 2022, driven by the sequential increase in Consumer revenue, accelerating cost reductions, and a one-time $8 million sales tax refund. Adjusted EBITDA declined from $628 million in the second quarter of 2021 primarily due to subsidy-related revenue declines, partially offset by lower operating expenses and cost savings initiatives.
Second-quarter 2022 highlights included:
- Built fiber to a record 281,000 locations
- Added 54,000 fiber broadband customer net additions, resulting in fiber broadband customer growth of 13.4 percent compared with the second quarter of 2021
- Revenue of $1.46 billion, net income of $101 million, and Adjusted EBITDA of $535 million
- Capital expenditures of $641 million, including $325 million of non-subsidy-related build capital expenditures
- Net cash from operations of $229 million, driven by healthy operating performance and increased focus on working capital management
- Raised $1.20 billion of debt in May, contributing to liquidity of approximately $3.70 billion
- Consolidated revenue growth was particularly impacted by the expiration of CAF II funding at the end of the fourth quarter of 2021
- Second-quarter 2022 operating income was $166 million and net income was $101 million.
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