Frontier sees decrease in revenue, profit in Q2
Frontier Communications reported second-quarter 2009 revenue of $532.1 million, compared with $562.6 million in the second quarter of 2008, a decrease of 5 percent.
According to the company, revenue declined as a result of lower access lines and reduced long distance, switched access and subsidy revenue.
Net income was $27.9 million, or 9 cents per share, compared with $55.8 million, or 17 cents per share, in the second quarter of 2008.
Frontier said the second quarter of 2009 included acquisition-related costs of $10.8 million ($6.8 million, or 2 cents per share, after tax). In May, Verizon reached a deal to sell scattered phone service areas outside of its main Northeastern and Californian territories to Frontier for $5.3 billion in stock.
The company lost approximately 27,700 access lines during the second quarter and had 2.2 million access lines as of June 30.
Frontier added approximately 13,800 net high-speed Internet customers during the quarter, to end it with 613,800. And approximately 11,400 video customers came on board in Q2, making 157,400 the total video connections as of June 30.
“I am very pleased with the strong results that Frontier delivered this quarter,” said Maggie Wilderotter, Frontier’s chairman and CEO. “We continue to focus on customer acquisition and retention as our primary goal. Our access line trends continued to improve for the fourth consecutive quarter, with absolute access line losses at their lowest level in over two years. Furthermore, our ability to deliver impressive results in our core business while also executing on the Verizon acquisition speaks to the strength and bandwidth of our management team.”
Frontier Communications offers telephone, video and Internet services in 24 states.