Frontier Communications' 3Q profit up threefold
STAMFORD, Conn. (AP) — Frontier Communications Corp.'s net income jumped more than threefold in the third quarter, as the telecommunications services provider's operating expenses declined sharply.
The company, which offers broadband, digital phone, video and other services, said Tuesday that net income rose to $67 million, or 7 cents per share, for the three months ended Sept. 30. That compares with net income of $20.4 million, or 2 cents per share, in the same period last year.
Revenue slipped to $1.25 billion from $1.29 billion a year earlier.
Analysts had expected, on average, earnings of 7 cents per share on revenue of $1.24 billion, according to FactSet.
Frontier attributed the decline in revenue to a drop in the number of residential and business customers and lower switched-access revenue.
But its latest results benefited from lower operating expenses, which fell 12 percent to $977.3 million.
The company lost roughly 51,800 customers during the quarter. That was down from the 65,700 lost in the second quarter and 72,600 in the first quarter.
All told, Frontier ended the third quarter with about 2.93 million residential customers and 291,400 business customers. Most of its customers — 1.78 million — were broadband subscribers.
Frontier's shares fell 11 cents, or 2.4 percent, to $4.53 in afternoon trading. The stock is down 12 percent so far this year.