Frontier focuses on cutting costs
Frontier Communications’ (FTR) adjusted EBITDA decreased by ~3.9% YoY to reach $878 million in the quarter ended September 30. This reduction was due to increased costs such as branding initiatives. The company’s adjusted EBITDA margin expanded to 41.3% in the third quarter from 40.6% in the same period a year earlier. For 2018, Frontier expects adjusted EBITDA of ~$3.55 billion.
During the UBS Global Media and Communications Conference held earlier this month, Dan McCarthy, Frontier’s president and CEO, spoke about the company’s latest cost-cutting initiatives. McCarthy reiterated the company’s goal of a $500 million run rate EBITDA benefit by the end of 2020. The company is undertaking revenue enhancement as well as operational enhancement initiatives to benefit EBITDA.
In the quarter ended September 30, the integrated US telecom behemoth Verizon (VZ) reported a consolidated adjusted EBITDA margin of 37.4%. AT&T’s (T) combined domestic wireless operations EBITDA margin was 42.8%, while Charter Communications’ (CHTR) adjusted EBITDA margin was 36.3% in the same quarter.