Frontier Communications may be one of the latest rural telco consolidators with its impending purchase of Verizon's rural lines, but it's also the latest telco to see its Q2 revenue decline. In the second quarter, Frontier's revenue declined by 5 percent to $532.1 million versus $562.6 million in the same period last year. The ILEC attributed the revenue decline to ongoing access line loss and reduced long distance, switched access and subsidy revenue. However, there were some bright spots as it saw a 6 percent increase in data and Internet services revenue. Meanwhile, customer revenue, which excludes all company revenue except switched access and subsidy, only saw a 4 percent decline.
During the second quarter, Frontier reportedly lost 27,000 total access lines, while adding about 13,800 high-speed Internet customers. As of the end of June, the operator had about 2.2 million access lines and 613,800 High-Speed Internet customers. In addition, Frontier added about 11,400 video customers during the quarter and had a total of 157,400 video customers at the end of June.
"I am very pleased with the strong results that Frontier delivered this quarter," Maggie Wilderotter, Frontier Communications Chairman and CEO, said in a press release. "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."
- Here's the official release
Frontier to buy Verizon rural lines for $5.25B
Rural consolidation a cautionary tale