Frontier Communications has set a new objective to reach 10 million total fiber locations by the end of 2025. Frontier made significant progress toward this objective in the second quarter of 2021, building fiber to approximately 157,000 new locations. Frontier now expects to reach 600,000 new locations in 2021, resulting in approximately 4 million fiber locations passed by the end of the year.
Nick Jeffery, President and Chief Executive Officer of Frontier, said “Demand for high-speed broadband is growing rapidly, and fiber is the best product to meet the needs of consumers and businesses. Frontier is already doing what customers want and cable can’t – delivering symmetrical download and upload speeds with far lower latency than our competition. Early next year, we will start delivering 2 gigabit per second services, further stretching our performance lead to where only fiber can compete. We have hard work ahead of us, but momentum is increasing as we rally the Frontier team around our mission to Build Gigabit America.”
The company provided the following updates:
- Frontier’s currently is able to deliver symmetrical 1 Gbps download and upload speeds;
- The company plans to launch a symmetrical 2 Gbps offering in the first quarter of 2022 that will unlock next-generation digital experiences for customers;
- Frontier plans to deploy fiber to reach 10 million locations by 2025; and
- Frontier has set a new target of $250 million run rate savings by 2023 from simplifying its operations and improve the customer experience.
In addition, Frontier reported consolidated Q2 revenue of $1.62 billion, a 7.9% decline from consolidated revenue reported in the second quarter of 2020, due to declining consumer copper subscribers and wholesale revenue, and the impact of fresh start accounting.
Frontier’s overall data and internet services revenue of $839 million decreased slightly in the second quarter of 2021 primarily due to declining copper subscribers. fiber broadband revenue was $268 million, a 13.6% increase over the second quarter of 2020, due to subscriber gains and higher ARPU. Consumer fiber net adds were approximately 12,000 in the quarter, the eighth consecutive quarter of positive consumer fiber net adds, resulting in broadband customer growth of 3.3% relative to the second quarter of 2020.
Second quarter 2021 operating income was $298 million. Net income was $4.58 billion due to approximately $4.2 billion of reorganization gains in the quarter, primarily related to the extinguishment of debt.
Capital expenditures increased to $385 million in the quarter from $225 million in the second quarter of 2020, as fiber expansion initiatives accelerated.
https://investor.frontier.com/
https://s1.q4cdn.com/144417568/files/doc_financials/2021/q2/FYBR-2021-Investor-Day-Presentation.pdf
Frontier emerges from Chapter 11 and sets sights on fiber expansion
Frontier Communications completed its financial restructuring process and emerged from Chapter 11. Through the bankruptcy proceedings, Frontier has reduced its debt by approximately $11 billion and annual interest expense by approximately $1 billion. The company says it is now well-positioned to accelerate its transformation to become a leading telecommunications technology company in the United States through investment in innovation, fiber…
