Frontier Communications reported Q2 revenue of $2,608 million, including contributions from the fully integrated assets Frontier acquired from Verizon in California, Texas, and Florida (CTF).
“We are very pleased with the performance of our newly acquired assets and our achievement of annualized cost synergies of $1 billion in the second quarter. We now expect annual cost synergies related to the acquisition of $1.25 billion, up from our original estimate of $700 million,” said Dan McCarthy, Frontier President and Chief Executive Officer.
“As we move forward, we are continuing to focus on executing our strategy for growth, including upgrading our broadband speed capabilities, expanding our new Vantage video service to an increasing portion of our footprint, and implementing our successful commercial distribution capabilities in Frontier’s new markets. We will remain focused on increasing our broadband and video penetration, and improving our efficiency. Our priorities continue to be driving strong free cash flow and continuing our disciplined capital allocation policy, which together underpin our very attractive, sustainable dividend, and industry-leading dividend payout ratio. We also are very well-positioned to achieve our plan to reduce leverage over time,” McCarthy said.
Financial Highlights for the Second Quarter 2016:
- Revenue of $2,608 million
- Operating income of $311 million, operating income margin of 11.9%
- Net loss of $80 million, or ($0.07) per share
- Adjusted EBITDA(2) of $1,032 million, adjusted EBITDA margin of 39.6%
- Net cash provided from operating activities of $693 million
- Adjusted Free Cash Flow(3) of $250 million
