Frontier logs in-line revenues as transformation continues (updated)

|About: Frontier Communications Co... (FTR)|By:, SA News Editor

Frontier Communications (NYSE:FTR) is seeing bouncy trades so far after hours following a Q3 earnings report where a net loss mostly came from a heavy goodwill impairment.

Updated 5:08 p.m.: Shares are now down 3.8% after hours.

Revenues were in line with expectations but net loss was $426M -- incorporating an impairment of $400M and a tax valuation allowance of $44M.

EBITDA was $878M with a margin of 41.3%.

Net cash from operations was $286M; operating free cash flow was -$43M.

Revenue by segment: Data and Internet services, $961M (up 0.5%); Voice Services, $669M (down 4.7%); Video Services, $260M (down 18.2%); Other, $141M (up 68%).

Revenue by type: Consumer, $1.07B (down 3%); Commercial, $962M (up 0.4%); subsidy/regulatory, $95M (down 50%).

It says it's committed to reducing debt; leverage ratio as of quarter's end was 4.78 to 1.

It's guiding for full-year EBITDA of about $3.55B, capex of $1.15B-$1.2B, and operating free cash flow of about $625M.

Press release

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