Frontier Communications Parent, Inc. (FYBR) Bundle
A Brief History of Frontier Communications
Frontier Communications has undergone significant transformations over the years, particularly as of 2024. The company has focused on expanding its fiber broadband services while managing a decline in its copper customer base.
Financial Performance
For the three months ended September 30, 2024, Frontier reported total revenue of $1,489 million, a 4% increase from $1,436 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $4,431 million, up 2% from $4,325 million in 2023. This growth was driven primarily by an increase in data and internet services, which rose 12% year-over-year to $1,004 million in Q3 2024.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,489 million | $1,436 million | 4% |
| Operating Income | $86 million | $114 million | -25% |
| Net Income (Loss) | $(82) million | $11 million | - |
| Consumer ARPU | $65.40 | $64.49 | 1% |
For the nine months ended September 30, 2024, the company reported an operating income of $267 million, down from $372 million in the previous year, reflecting a decrease of 28%. The net loss for the nine months was $(204) million, compared to a net income of $12 million in the same period of 2023.
Customer Metrics
As of September 30, 2024, Frontier's fiber broadband consumer customers reached 2,157,000, a 20% increase from 1,797,000 in 2023. The company also made a net addition of approximately 49,000 consumer broadband customers in Q3 2024 compared to a net gain of 17,000 in Q3 2023.
| Customer Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Fiber Broadband Customers | 2,157,000 | 1,797,000 | 20% |
| Copper Broadband Customers | 666,000 | 870,000 | -23% |
| Consumer Customer Churn | 1.49% | 1.47% | 1% |
Debt and Liquidity
As of September 30, 2024, Frontier's total long-term debt stood at $11,571 million, reflecting an increase from $11,231 million at the end of the previous year. The company had liquidity of approximately $1,980 million, consisting of $1,320 million in cash and cash equivalents and $660 million in available capacity on its undrawn revolving credit facility.
| Debt Metrics | Amount ($ million) |
|---|---|
| Total Long-term Debt | $11,571 |
| Cash and Cash Equivalents | $1,320 |
| Revolving Credit Facility Capacity | $660 |
Operational Challenges and Strategic Focus
Frontier has faced operational challenges, particularly in managing the transition from copper to fiber services. The company reported a 9% decrease in copper revenue for Q3 2024, reflecting a broader trend of customer migration to fiber services. In response, Frontier has been investing heavily in its fiber network to enhance customer experience and service offerings.
The company incurred restructuring costs totaling $88 million over the nine months ended September 30, 2024, as part of its ongoing efforts to streamline operations and reduce costs.
Future Outlook
As Frontier continues to expand its fiber footprint, the focus remains on enhancing its broadband services while navigating the decline in traditional copper services. The company aims to capitalize on the growing demand for high-speed internet as it transitions its customer base towards fiber solutions.
A Who Owns Frontier Communications Parent, Inc. (FYBR)
Ownership Structure
As of 2024, Frontier Communications Parent, Inc. (FYBR) has undergone significant changes in its ownership structure. The company is publicly traded on the NASDAQ under the ticker symbol FYBR.
Major Shareholders
The following table details the major shareholders of Frontier Communications as of 2024:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Verizon Communications Inc. | 43.7% | Acquisition Agreement |
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.2% | Institutional Investor |
| State Street Corporation | 5.9% | Institutional Investor |
| Other Institutional Investors | 34.7% | Various |
Recent Acquisition Activity
On September 4, 2024, Frontier entered into a merger agreement with Verizon Communications, where Verizon will acquire Frontier for $38.50 per share in cash. This represents a premium of 43.7% over Frontier's 90-day volume-weighted average share price on September 3, 2024.
Financial Overview
Frontier reported the following financial metrics for the nine months ended September 30, 2024:
| Financial Metric | Amount ($ in millions) |
|---|---|
| Total Revenue | 4,431 |
| Net Income (Loss) | (204) |
| Operating Income | 267 |
| Basic Earnings (Loss) Per Share | (0.82) |
| Total Assets | 8,000 |
| Total Liabilities | 6,000 |
Market Performance
As of September 30, 2024, Frontier's stock performance reflects the impact of the acquisition announcement:
| Performance Metric | Value |
|---|---|
| Current Share Price | $38.50 |
| Market Capitalization | $9.6 billion |
| 90-Day Average Share Price | $26.81 |
Customer Metrics
Frontier's customer metrics as of September 30, 2024, indicate significant shifts in its customer base:
| Customer Type | Count | Change (%) |
|---|---|---|
| Fiber Broadband Customers | 2,157,000 | 20% |
| Copper Broadband Customers | 666,000 | (23%) |
| Total Customers | 3,176,000 | 2% |
Debt and Financing Arrangements
Frontier has engaged in various financing activities, including:
| Debt Type | Amount Outstanding ($ in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan Facility | 750 | 6.19% | June 20, 2054 |
| Series 2023-1 Class A-2 Notes | 1,119 | 6.60% | August 20, 2053 |
Frontier Communications Parent, Inc. (FYBR) Mission Statement
Mission Statement Overview
Frontier Communications Parent, Inc. aims to deliver high-quality communication services that connect people and businesses, enhancing their lives and productivity through cutting-edge technology. The company is committed to expanding its fiber broadband network to provide reliable and efficient internet services to underserved areas, thus improving access to digital resources.
Latest Financial and Operational Metrics
As of September 30, 2024, Frontier Communications reported significant growth in its fiber broadband customer base and overall revenue performance. The following table summarizes key financial metrics and operational achievements:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue ($ millions) | 1,489 | 1,436 | 3.7% |
| Data and Internet Services Revenue ($ millions) | 1,004 | 895 | 12.2% |
| Voice Services Revenue ($ millions) | 301 | 341 | (11.7%) |
| Video Services Revenue ($ millions) | 83 | 104 | (20.2%) |
| Operating Income ($ millions) | 86 | 114 | (24.6%) |
| Net Income (Loss) ($ millions) | (82) | 11 | (843.6%) |
| Capital Expenditures ($ millions) | 1,991 | 2,882 | (30.9%) |
| Fiber Broadband Customer Additions | 104,000 | 75,000 | 38.7% |
| Total Customers | 3,176,000 | 3,118,000 | 1.9% |
Customer Metrics
Frontier has focused on enhancing its customer base through its fiber expansion strategy. The following table provides detailed customer metrics:
| Customer Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Fiber Broadband Customers | 2,157,000 | 1,797,000 | 20.1% |
| Copper Broadband Customers | 666,000 | 870,000 | (23.4%) |
| Consumer Customer Churn (%) | 1.80% | 1.70% | 5.9% |
| Average Revenue Per Customer (ARPC) ($) | 83.12 | 83.99 | (1.0%) |
Strategic Initiatives
Frontier's strategic initiatives include a significant investment in fiber network expansion, which is expected to drive future growth and improve service reliability. The company has projected a capital expenditure of approximately $1,991 million for the fiscal year 2024, aimed at enhancing its infrastructure and service offerings.
Recent Developments
On September 4, 2024, Frontier entered a merger agreement with Verizon, with an acquisition price of $38.50 per share, reflecting a premium of 43.7% over its 90-day volume-weighted average share price prior to the announcement. This merger is anticipated to further bolster Frontier's market position and resource capabilities in the telecommunications industry.
Financial Position
As of September 30, 2024, Frontier reported total liabilities of $15,793 million and total equity of $5,066 million, highlighting its financial structure as it navigates through its expansion and operational challenges.
| Financial Position Metrics | Amount ($ millions) |
|---|---|
| Total Assets | 20,859 |
| Total Liabilities | 15,793 |
| Total Equity | 5,066 |
| Long-term Debt | 11,246 |
How Frontier Communications Parent, Inc. (FYBR) Works
Overview of Operations
Frontier Communications Parent, Inc. operates primarily in the telecommunications sector, providing data, voice, and video services. The company's revenue is categorized based on the technology used to deliver services, specifically fiber and copper.
Financial Performance
As of the third quarter of 2024, Frontier reported the following financial results:
| Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | % Change |
|---|---|---|---|
| Total Revenue | 1,489 | 1,436 | 4% |
| Fiber Revenue | 867 | 760 | 14% |
| Copper Revenue | 604 | 661 | (9)% |
| Operating Income | 86 | 114 | (25)% |
| Net Income (Loss) | (82) | 11 | NM |
Revenue Breakdown
Frontier's revenue is derived from various customer segments, including consumer and business/wholesale customers. The following table summarizes revenue by customer segment for Q3 2024:
| Customer Segment | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | % Change |
|---|---|---|---|
| Consumer | 789 | 787 | 0% |
| Business and Wholesale | 682 | 634 | 8% |
Customer Metrics
As of September 30, 2024, Frontier reported the following customer metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Customers | 3,176,000 | 3,118,000 | 2% |
| Fiber Broadband Customers | 2,157,000 | 1,797,000 | 20% |
| Copper Broadband Customers | 666,000 | 870,000 | (23)% |
| Net Customer Additions | 22,000 | (9,000) | 344% |
Average Revenue Per Customer
Frontier's revenue per customer is an important metric, reflecting the company's pricing strategy and customer mix:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Average Revenue Per Customer (ARPC) | $83.12 | $83.99 | (1)% |
| Average Revenue Per Fiber Customer (ARPU) | $65.40 | $64.49 | 1% |
| Average Revenue Per Copper Customer (ARPU) | $59.16 | $54.62 | 8% |
Operating Expenses
Operating expenses for the third quarter of 2024 are detailed below:
| Expense Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | % Change |
|---|---|---|---|
| Cost of Service | 538 | 545 | (1)% |
| Selling, General & Administrative | 427 | 405 | 5% |
| Depreciation & Amortization | 410 | 356 | 15% |
| Restructuring Costs | 28 | 16 | 75% |
| Total Operating Expenses | 1,403 | 1,322 | 6% |
Debt and Interest Expense
Frontier's debt situation as of September 30, 2024, reflects the company's financing strategy:
| Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | % Change |
|---|---|---|---|
| Interest Expense | (203) | (170) | 19% |
| Total Debt | 8,500 | 8,000 | 6.25% |
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, were as follows:
| Category | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Capital Expenditures | (1,991) | (2,882) |
Future Revenue Projections
Future revenue projections based on unsatisfied performance obligations are as follows:
| Year | Projected Revenue ($ millions) |
|---|---|
| 2024 (remaining months) | 284 |
| 2025 | 255 |
| 2026 | 148 |
| 2027 | 53 |
| 2028 | 23 |
| Thereafter | 214 |
| Total | 977 |
How Frontier Communications Parent, Inc. (FYBR) Makes Money
Revenue Streams
Frontier Communications generates revenue primarily through its contracts with customers, offering data, voice, and video services. The following table summarizes their revenue by technology and customer type for the three and nine months ending September 30, 2024:
| Revenue Category | Three Months Ended September 30, 2024 ($ in millions) | Three Months Ended September 30, 2023 ($ in millions) | Change (%) | Nine Months Ended September 30, 2024 ($ in millions) | Nine Months Ended September 30, 2023 ($ in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Fiber Revenue | 867 | 760 | 14 | 2,512 | 2,235 | 12 |
| Copper Revenue | 604 | 661 | (9) | 1,871 | 2,032 | (8) |
| Total Revenue from Contracts with Customers | 1,471 | 1,421 | 4 | 4,383 | 4,267 | 3 |
| Subsidy Revenue | 18 | 15 | 20 | 48 | 58 | (17) |
| Total Revenue | 1,489 | 1,436 | 4 | 4,431 | 4,325 | 2 |
Consumer and Business Segments
The company categorizes its revenue based on consumer and business/wholesale segments:
| Segment | Three Months Ended September 30, 2024 ($ in millions) | Three Months Ended September 30, 2023 ($ in millions) | Change (%) | Nine Months Ended September 30, 2024 ($ in millions) | Nine Months Ended September 30, 2023 ($ in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Consumer | 789 | 787 | 0 | 2,365 | 2,323 | 2 |
| Business and Wholesale | 682 | 634 | 8 | 2,018 | 1,944 | 4 |
Product Revenue Breakdown
Frontier's revenue is also segmented into data and Internet services, voice services, and video services:
| Product Type | Three Months Ended September 30, 2024 ($ in millions) | Three Months Ended September 30, 2023 ($ in millions) | Change (%) | Nine Months Ended September 30, 2024 ($ in millions) | Nine Months Ended September 30, 2023 ($ in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Data and Internet Services | 1,004 | 895 | 12 | 2,934 | 2,637 | 11 |
| Voice Services | 301 | 341 | (12) | 934 | 1,044 | (11) |
| Video Services | 83 | 104 | (20) | 265 | 333 | (20) |
| Other | 83 | 81 | 2 | 250 | 253 | (1) |
Customer Metrics
As of September 30, 2024, Frontier reported the following customer metrics:
| Customer Type | Count (Thousands) | Change (%) |
|---|---|---|
| Fiber Broadband Consumer Customers | 2,157 | 20 |
| Copper Broadband Consumer Customers | 666 | (23) |
| Business and Wholesale Fiber Broadband Customers | 138 | 10 |
Operating Expenses
Operating expenses for the company are broken down as follows:
| Expense Category | Three Months Ended September 30, 2024 ($ in millions) | Three Months Ended September 30, 2023 ($ in millions) | Change (%) | Nine Months Ended September 30, 2024 ($ in millions) | Nine Months Ended September 30, 2023 ($ in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Service | 538 | 545 | (1) | 1,576 | 1,615 | (2) |
| Selling, General, and Administrative Expenses | 427 | 405 | 5 | 1,304 | 1,250 | 4 |
| Depreciation and Amortization | 410 | 356 | 15 | 1,196 | 1,040 | 15 |
| Restructuring Costs and Other Charges | 28 | 16 | 75 | 88 | 48 | 83 |
| Total Operating Expenses | 1,403 | 1,322 | 6 | 4,164 | 3,953 | 5 |
Net Income and Earnings Per Share
For the three and nine months ended September 30, 2024, Frontier reported:
| Period | Net Income (Loss) ($ in millions) | Earnings (Loss) Per Share |
|---|---|---|
| Three Months | (82) | (0.33) |
| Nine Months | (204) | (0.82) |
Frontier Communications Parent, Inc. (FYBR) DCF Excel Template
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Resources:
- Frontier Communications Parent, Inc. (FYBR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Frontier Communications Parent, Inc. (FYBR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Frontier Communications Parent, Inc. (FYBR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.