Frontier’s first-quarter losses
Frontier Communications (FTR) posted adjusted EPS of -$0.18 in the first quarter of 2019, worse than analysts’ expectation of EPS of -$0.10. The telecommunications company has been reporting losses for the past 12 consecutive quarters. However, its losses started improving in the fourth quarter of 2018.
In the first quarter of 2019, Frontier’s losses also improved from its previous year’s EPS of -$0.58.
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Frontier’s losses improved
Despite a year-over-year decline in its top line growth, Frontier’s EPS of -$0.18 in the first quarter of 2019 improved from the previous year’s quarter due to its improved expense management. Frontier’s revenue fell due to lower customer and subsidy revenues in the quarter. Its adjusted EBITDA margin also expanded 30 basis points to 41.6% in the first quarter of 2019, in line with the company’s target of achieving an adjusted EBITDA margin of above 40%.
Frontier lost 38,000 broadband customers in the first quarter, an improvement from its loss of 43,000 customers in the first quarter of 2018 and its loss of 67,000 customers in the fourth quarter of 2018 owing to improvements in its fiber broadband. Frontier competes with Charter Communications (CHTR) and Comcast (CMCSA) in terms of broadband net additions. These companies managed to add the most broadband subscribers. Charter added 398,000 residential Internet customers in the first quarter of 2019, while Comcast’s residential high-speed Internet net additions totaled 352,000 in the quarter.