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Frontier rings up record quarter

Spurred by its booming long-distance business, Frontier Corp. cranked out record-breaking profits and revenues for the second quarter, marking the telecom firm’s 17th consecutive quarter of double-digit earnings growth.
Net income jumped to $69.2 million or 42 cents a share, climbing 27 percent over the same period in 1995.
Despite outpacing Street estimates for the quarter, Frontier stock was down slightly after the second-quarter news, trading midday at $28.88. Most markets were posting gains this morning.
Revenues at Frontier–now the nation’s fifth-largest long-distance company–also steamed ahead during the quarter. A 64 percent climb in long-distance traffic pushed revenues to a record $670.3 million, up 32.2 percent over 1995.
The firm marked higher operating margins in both the long-distance and local business segments. For the long-distance business, margins climbed to 14.6 percent from 13 percent in the first quarter of 1996. The operating margin for the local telephone unit was 33 percent, compared with 31.5 percent a year ago.
“With higher profit margins in all of our business segments, we’re clearly realizing operating synergies and creating shareowner value from the integration of our acquisitions, and we expect that momentum to continue as we grow our business,” CEO Ronald Bittner said.
Nearly a year ago, Frontier merged with ALC Communications Corp., a Detroit-based long-distance firm. Last year, Frontier also bought seven other telecom companies across the country.
For the six-month period ended June 30, Frontier logged $1.3 billion in sales. Operating income hit $234.6 million for the first half of 1996, up from $183.6 million a year ago.
Frontier reported earnings of 77 cents a share for the first six months of 1996, compared with 65 cents for the same period last year. In the first quarter of 1996, Frontier took a $6.9 million post-tax charge related in part to expenses from union contract negotiations with its Rochester Telephone Corp. subsidiary.

Frontier rings up record quarter

Spurred by its booming long-distance business, Frontier Corp. cranked out record-breaking profits and revenues for the second quarter, marking the telecom firm’s 17th consecutive quarter of double-digit earnings growth.
Net income jumped to $69.2 million or 42 cents a share, climbing 27 percent over the same period in 1995.

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