- Frontier Communications Parent, Inc (NASDAQ:FYBR) reported a first-quarter FY22 revenue decline of 10.7% year-on-year to $1.45 billion, in line with the consensus.
- The growth in consumer fiber broadband was offset by declining video, voice, and wholesale services.
- Consumer revenue was $776 million, a 4.9% decline Y/Y, and Consumer fiber revenue was flat Y/Y to $407 million.
- Consumer fiber broadband revenue increased 12% Y/Y to $254 million, driven by solid growth in fiber broadband customers and average revenue per customer (ARPU).
- Business and wholesale revenue was $666 million, a 7% decline Y/Y, while the Business and wholesale fiber broadband revenue was $265 million, a 1.1% decline Y/Y.
- Frontier built Fiber to a record 211,000 locations, bringing total fiber passings to 4.2 million. Consumer fiber broadband net adds were 52,000, the 11th consecutive quarter of positive consumer fiber net adds, resulting in fiber broadband customer growth of 11%.
- The operating income declined 53.3% Y/Y to $121 million. The adjusted EBITDA margin contracted 520 bps to 35.2%, driven by revenue declines, partially offset by lower video content costs.
- EPS of $0.26 beat the consensus of $0.24.
- Frontier held $2.2 billion in cash and equivalents and generated $528 million in operating cash flow.
- Outlook: Frontier reiterated FY22 adjusted EBITDA of $2 billion - $2.15 billion and targets Fiber builds to at least 1 million new locations.
- Price Action: FYBR shares traded higher by 5.04% at $25.97 on the last check Friday.
