Frontier Focuses on Cost-Cutting Measures to Boost Profitability

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May. 17 2019, Updated 3:54 p.m. ET

Frontier’s adjusted EBITDA

Frontier Communications’ (FTR) adjusted EBITDA decreased ~3.9% YoY (year-over-year) to $873 million in the first quarter. However, the company’s adjusted EBITDA margin expanded to 41.6% in the first quarter from 41.3% in the first quarter of 2018.

For fiscal 2019, Frontier Communications expects its adjusted EBITDA to be $3.45 billion–$3.55 billion—down from $3.565 billion reported in fiscal 2018.

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Cost-cutting initiatives

To compensate for the slowing revenue growth trend and to improve the margins and earnings, Frontier Communications is working to curb its costs. During the JPMorgan Global Technology, Media and Communications Conference held on May 14, Daniel McCarthy, Frontier Communications’ president and CEO, talked about the company’s latest cost-cutting initiatives. McCarthy reaffirmed the company’s goal of a $500 million run rate EBITDA benefit by the end of fiscal 2020.

The efforts include operational and revenue enhancements, customer care, and technical support, which are expected to improve sales, enhance customer satisfaction, and reduce costs.

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