Frontier’s first-quarter revenue
Frontier Communications’ (FTR) revenue of $2.1 billion was in line with analysts’ expectations in the first quarter of 2019, but it fell ~4.5% YoY (year-over-year) and ~1.1% sequentially. The company has been seeing sequential revenue falls for the past nine consecutive quarters.
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Frontier’s revenue fell in the first quarter of 2019 due to a 5.2% YoY fall in its subsidy revenue. Its customer revenue was also down 4.4% YoY in the quarter. A soft demand trend in the company’s voice and video businesses dented its quarterly revenue. Meanwhile, its data and Internet services revenue also fell YoY in the quarter.
During the quarter, Frontier lost net 65,000 customers in its Consumer segment, fewer than 74,000 in the first quarter of 2018 and 92,000 in the fourth quarter of 2018. The company also lost 38,000 broadband customers in the first quarter, fewer than 43,000 in the first quarter of 2018 and 67,000 in the fourth quarter of 2018. The company’s transformation initiatives helped it improve its customer losses in the quarter.
Frontier’s video customer losses continued to rise in the first quarter of 2019. Its video customer losses totaled 54,000 in the first quarter, higher than its losses of 28,000 in the first quarter of 2018 and 35,000 in the fourth quarter of 2018 due to cord cutting. Over-the-top players such as Netflix (NFLX) and Amazon (AMZN) have attracted traditional cable subscribers with their original shows and movie offerings.
Charter (CHTR) and Comcast (CMCSA) lost 152,000 and 107,000 residential video customers, respectively, in the first quarter. The top two biggest US wireless carriers, Verizon (VZ) and AT&T (T), also reported video customer losses in their recently reported first quarters.