- Frontier Communications Parent Inc (NASDAQ:FYBR) reported a fourth-quarter FY21 revenue decline of 6.3% year-on-year to $1.54 billion, missing the consensus of $1.56 billion.
- The growth in consumer fiber broadband was more than offset by declines in the video, voice, and wholesale services.
- Consumer revenue was $782 million, a 5.9% decline Y/Y, and Consumer fiber revenue declined 1.6% Y/Y to $405 million.
- Consumer fiber broadband revenue increased 10.9% Y/Y to $245 million, driven by solid growth in fiber broadband customers and average revenue per customer (ARPU).
- Business and wholesale revenue was $677 million, a 6% decline Y/Y, while the Business and wholesale fiber broadband revenue was $270 million, a 1.1% decline Y/Y.
- Frontier built Fiber to a record 192,000 locations, bringing total fiber passings to 4 million. Consumer fiber broadband net adds were 44,000, the tenth consecutive quarter of positive consumer fiber net adds, resulting in fiber broadband customer growth of 7.9%.
- The operating income declined 1.8% Y/Y to $272 million. The adjusted EBITDA margin contracted 300 bps to 37.9%, driven by revenue declines, partially offset by cost savings initiatives, including the emphasis on reducing video content costs.
- EPS of $0.77 beat the consensus of $0.50.
- Frontier held $2.1 billion in cash and equivalents and generated $468 million in operating cash flow.
- Outlook: Frontier sees FY22 adjusted EBITDA of $2 billion - $2.15 billion and targets Fiber builds to at least 1 million new locations.
- Price Action: FYBR shares traded higher by 2.28% at $26.44 on the last check Wednesday.
