Frontier Reveals Capex, Revenue and Fiber Target for 2024

Frontier Communications, a leading provider of broadband services, has announced its fourth-quarter and full-year 2023 financial results, showcasing robust growth and strategic advancements in its fiber network expansion.
Nick Jeffery, President and CEO of Frontier, expressed satisfaction with the company’s performance, stating, “We have steadily built a powerful fiber growth engine, and it’s clear that strategy is working.” Jeffery highlighted the company’s achievement of delivering the fastest EBITDA growth among major players in the fixed broadband industry for two consecutive quarters.

Full-Year 2023 Highlights:

Passed 1.32 million new fiber locations, reaching a total of 6.5 million fiber locations.

Added a record 318,000 fiber broadband customers, resulting in a 19 percent year-over-year growth.

Achieved revenue of $5.75 billion, net income of $29 million, and Adjusted EBITDA of $2.13 billion.

Executed cash capital expenditures of $3.21 billion, with a total capital investment of $3.22 billion.

Realized $527 million of gross annualized cost savings, surpassing the target of $500 million.

Completed landmark $2.1 billion of fiber securitization transactions.

Fourth-Quarter 2023 Highlights:

Passed 333,000 new fiber locations and added 84,000 fiber broadband customers.

Revenue of $1.43 billion decreased slightly year-over-year, with growth in fiber-based products offset by declines in copper-based products.

Achieved an Adjusted EBITDA of $549 million, representing a 4.0 percent increase year-over-year.

Generated net cash from operations of $296 million.

Fourth-Quarter 2023 Consumer Results:

Consumer fiber revenue increased by 11.0 percent year-over-year, driven by growth in fiber broadband.

Consumer fiber broadband revenue increased by 25.1 percent year-over-year, with net additions of 81,000 customers.

Consumer fiber broadband ARPU increased by 4.8 percent year-over-year to $64.16.

Fourth-Quarter 2023 Business and Wholesale Results:

Business and Wholesale revenue decreased by 3.6 percent year-over-year, primarily driven by declines in both fiber and copper segments.

Business and Wholesale fiber broadband customer net additions of 3,000 resulted in a 13.2 percent year-over-year growth.

2024 Outlook:

Frontier’s guidance for the full year 2024 includes Adjusted EBITDA of $2.20 – $2.25 billion, new fiber passings of 1.3 million, and cash capital investment of $3.00 – $3.20 billion.

Frontier’s strong performance in expanding its fiber network and attracting new customers underscores its commitment to delivering high-quality broadband services across its markets. With a positive outlook for 2024, the company remains focused on driving growth and enhancing shareholder value.