X
<

Frontier Communications’ Major Long-Term Growth Drivers

PART:
1 2 3 4 5 6 7 8 9 10 11 12
Part 4
Frontier Communications’ Major Long-Term Growth Drivers PART 4 OF 12

Insights from Frontier Communications’ Earnings Trends

Frontier’s EBITDA margin over the past few quarters

In the previous part, we discussed Frontier Communications’ (FTR) revenue trend over the past few quarters. Now let’s look at FTR’s adjusted EBITDA1 margin.

Frontier Communications’ adjusted EBITDA was ~$906.0 million in 2Q17, which was slightly below analysts’ expectations of $910.0 million. The company’s adjusted EBITDA was ~$1.0 billion in 2Q16.

Frontier’s adjusted EBITDA margin was 39.3% in 2Q17, up from 39.2% in 1Q17. The sequential increase in its EBITDA margin can be traced to its continued cost-reduction programs and expense savings from synergy during its seasonally slowest quarter.

Insights from Frontier Communications’ Earnings Trends

Interested in FTR? Don't miss the next report.

Receive e-mail alerts for new research on FTR

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Frontier Communications’ management expects its EBITDA to stabilize on a sequential basis and potentially grow by the end of 2017. The company anticipates EBITDA margins that exceed 40% going forward.

During its 2Q17 earnings conference call, Frontier Communications’ management expressed confidence that it can achieve adjusted EBITDA of $3.8 billion by the end of 2017 through improved operating metrics and cost-cutting initiatives.

Frontier’s peer comparison of EBITDA margins in 2Q17

In 2Q17, the integrated US telecom behemoth Verizon (VZ) reported a consolidated adjusted EBITDA margin of 37.2%. The EBITDA margin for AT&T’s (T) combined domestic wireless operations reached 41.8% in 2Q17.

Windstream’s (WIN) adjusted OIBDA (operating income before depreciation and amortization) margin was 22.6% in 2Q17.

  1. earnings before interest, tax, depreciation, and amortization
X

Please select a profession that best describes you: