Frontier Communications Parent, Inc (NASDAQ:FYBR) reported a second-quarter FY23 revenue decline of 0.7% year-on-year to $1.45 billion, beating the consensus of $1.44 billion.
Declines in copper-based products offset the growth in fiber-based products.
Consumer revenue was $775 million, a 2% decline Y/Y, and Consumer fiber revenue rose by 9.7% Y/Y to $462 million.
Consumer fiber broadband revenue increased 19.4% Y/Y to $320 million, driven by growth in fiber broadband customers.
Business and wholesale revenue was $653 million, a 0.3% growth Y/Y, while the Business and wholesale fiber broadband revenue was $284 million, a 7.6% growth Y/Y.
Frontier built fiber to 316,000 locations, bringing total fiber passings to 5.8 million. Consumer fiber broadband net adds were 63,000, resulting in fiber broadband customer growth of 19.7%.
The adjusted EBITDA margin was flattish at 36.8%. EPS loss of $(0.01) beat the consensus loss of $(0.02).
Frontier held $1.2 billion in cash and equivalents and used $(781) million in free cash flow.
Outlook: Frontier reiterated FY23 adjusted EBITDA of $2.11 billion – $2.16 billion and targeted fiber builds to 1.3 million new locations.
Price Action: FYBR shares are trading higher by 4.41% at $18.59 on the last check Friday.
