Frontier's Q2 profit up 26% on lower costs
STAMFORD, Conn. (AP) – Frontier Communications, the phone company that just bought outlying areas of Verizon Communications' network, on Wednesday said its earnings rose 26 percent from a year ago, as lower expenses offset a loss of lines.
The results don't include the 4 million phone lines in 14 states Frontier bought from Verizon for $5.3 billion. That sale closed on July 1, just after the end of the quarter. It tripled Frontier's size.
Stamford-based Frontier said it earned $35.1 million, or 11 cents per share, in the April-to-June period, up from $27.9 million, or 9 cents per share, a year ago.
The earnings included acquisition and integration costs of 8 cents per share. Excluding that item, earnings would have been 19 cents per share, beating the average forecast of analysts polled by Thomson Reuters at 16 cents per share.
Most of the earnings increase was due to a reduction in depreciation and amortization, lower interest expenses and investment gains.
Revenue fell 3 percent to $516 million from $532 million as it lost 192,000 lines compared with a year ago but added 34,000 broadband lines. Analysts were expecting revenue of $512 million.