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Frontier Communications profit increases in third quarter

Rochester Business Journal
November 6, 2012

Frontier Communications Corp. has put an end to its string of four consecutive quarters of year-over-year profit declines.

The company Tuesday reported third-quarter net income of $67 million, or 7 cents a share, up from $20.4 million, or 2 cents a share, during a year ago.

The earnings met analysts’ expectations.
 
Frontier logged revenues of $1.25 billion, down 3 percent from a year ago and slightly below analysts’ expectations of $1.26 billion. The company attributed the decline in revenues to a decrease in its number of residential and business customers, as well as switched access revenue.

As of Sept. 30, Frontier had 2.9 million residential customers, compared with nearly 3.2 million a year ago. It had slightly more than 290,000 business customers, compared with nearly 320,000 in 2011.

Frontier’s operating expenses fell 12 percent during the quarter, helping its operating margin increase from 14 percent to 22 percent.

“Frontier had a milestone third quarter, with the best revenue and customer metrics since the closing of our July 2010 acquisition,” said Maggie Wilderotter, chairman and CEO, in a statement.

For the full year, the company expects free cash flow, excluding integration costs and integration capital expenditures, of $900 million to $1 billion.

Frontier shares (NasdaqGS: FTR) Tuesday at 3:30 were trading at $4.46, down 18 cents, or nearly 4 percent, from Monday’s close. 

(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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