Frontier Communications 2025 Q1 Earnings Mixed Performance as Net Income Plummets 6500%
Wednesday, Apr 30, 2025 6:53 am ET
25min read FYBR Trend
Revenue
Frontier Communications experienced a 3.4% increase in total revenue, reaching $1.51 billion for Q1 2025, up from $1.46 billion in Q1 2024. Revenue from contracts with customers amounted to $1.50 billion. Data and Internet services contributed significantly with $1.05 billion. Voice services generated $290 million, while video services added $74 million. Other segments, including subsidy and other revenue, collectively brought in $98 million, solidifying the total revenue figure.
Earnings/Net Income
EPS remained stable at $-0.26, matching the prior year's Q1 performance. However, the company reported a net loss of $-64 million, a stark contrast to the $1 million net income in Q1 2024. This represents a significant decline in profitability. This indicates a concerning trend in Frontier's financial health.
Post Earnings Price Action Review
Following the release of its earnings report, frontier communications (FYBR) saw mixed impacts on its stock price over varying time frames. The 3-day win rate for revenue stood at 56.25%, suggesting a moderate likelihood of stock price improvement shortly after earnings announcements. However, this positive effect lessened over longer periods, with a 30-day win rate dropping to 31.25%. Net income had similar short-term influence, with a 3-day win rate at 50.00%, but reduced impact over 30 days at 25.00%. EPS demonstrated the weakest influence on stock performance, with win rates decreasing significantly over 30 days. In summary, revenue and net income typically have a more enduring effect on stock price than EPS, showing varying responses across different timelines.
CEO Commentary
Nick Jeffery, President and Chief Executive Officer of frontier, highlighted the company's strong performance in the first quarter of 2025, emphasizing a 19% increase in fiber broadband customers and 24% growth in fiber broadband revenues. He noted that the fiber-first strategy continues to drive significant growth, achieving record revenue and Adjusted EBITDA. Jeffery also celebrated reaching over 8 million fiber passings, nearly achieving the company's goal of 10 million fiber passings. He expressed pride in expanding access for millions of Americans while building a lasting legacy, particularly in light of the pending acquisition by Verizon.
Guidance
Frontier did not provide a specific financial outlook due to the pending acquisition by Verizon. However, the transaction is expected to close by the first quarter of 2026, contingent upon receiving necessary regulatory approvals and meeting other conditions outlined in the merger agreement.
Additional News
In recent developments, Frontier Communications is moving forward with its strategic acquisition by Verizon Communications Inc., which was announced on September 4, 2024. The merger agreement outlines plans for Verizon to acquire Frontier, with the transaction expected to close by the first quarter of 2026, subject to regulatory approvals and conditions. This acquisition is a significant move for Frontier, as it aims to expand its fiber network and improve service offerings. Additionally, Frontier is focusing on enhancing customer experience through its fiber-first strategy, which continues to drive growth and network expansion across the United States. The company is also monitoring developments in regulatory landscapes that may impact its operations and strategic plans. Frontier's leadership remains committed to ensuring a smooth transition during the acquisition process, emphasizing long-term value creation for shareholders.
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