Frontier Communications Corp (NASDAQ:FTR) Reports $2,356 million in revenue in 2017 First Quarter Results

Frontier Communications Corp (NASDAQ:FTR)

Frontier Communications Corp (NASDAQ:FTR) has announced its financial results for the first quarter of the 2017 financial year. Besides the financial details reported, the company’s Board of Directors announced a revision of the company’s capital allocation strategy. The Board announced a reduction in the company’s quarterly dividend down to $0.04 per share. The move is meant to boost the company’s financial flexibility and help in achieving the 3.5x targeted leverage ratio by 2021. The company’s President and CEO Dan McCarthy said the company is continually realizing its targeted synergies and efficiencies adding that they are currently executing several programs aimed at reducing churn, enhancing customer experience generating cash flow and stabilizing revenues.

Frontier Communications Corp (NASDAQ:FTR) reported $2.356 billion in revenue for the first quarter of the 2017 financial year. This is compared to the $2.409 billion that was reported in the fourth quarter of the 2016 financial year.  The first quarter revenue as well as customer trends in regards to Legacy operations are reflected in the company’s automation process to cut on the non-paying customers. The whole cleanup process led to a reduction of 18,000 in the company’s customer base as well as revenue amounting to $5 million.

Frontier Communications Corp (NASDAQ:FTR) reported 2.37% in residential customer churn during the first quarter. This represents 3.01% for CTF operations and 1.95% for Frontier legacy. The total increase in residential ARPC is attributed to the company’s increase in CTF Operations which were offset by several changes in subscriber mix.

Frontier Communications Corp (NASDAQ:FTR) reported $2.085 billion in total operating expenses during the first quarter of the 2017 financial year. This represents a 3.2% decrease from the $2.154 billion that was reported in the last quarter of the last financial year. The company reduced its adjusted operating expenses by $10 million down to $1.433 billion compared to what was reported in last quarter of the 2016 financial year. The company reported $2 million in integration expenses compared to $49 million that was reported in fourth quarter of the last financial year.

Frontier Communications Corp (NASDAQ:FTR)’s net cash from operating activities amounted to $300 million during the first quarter of the 2017 financial year. The company reported $175 million in adjusted cash flow for the first quarter.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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