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Frontier 2Q deeper in red

BY

8/2/2017
Matt Pilon
Matt Pilon
Frontier's Trumbull Street facility in downtown Hartford.
Norwalk telecommunications provider Frontier, which has a Hartford presence, continued to see red ink in the second quarter.

In the period ended June 30, its net loss totaled $715 million, or a per-share loss of $9.21, compared to a $129 million net loss, or a per-share loss of $1.67, in the year-ago period.

The loss was mainly driven by a $532 million (after tax) goodwill impairment charge in connection with acquiring Verizon customers in California, Texas and Florida in 2016, CEO Dan McCarthy said.

Despite the losses, the churn rate -- or rate of customer defections -- improved to 2.24 percent compared to 2.37 percent in the first quarter, he said. In the first quarter, the company lost $5 million after purging about 18,000 non-paying customers from its subscriber rolls in California, Texas and Florida.

Second quarter revenue was flat at $2.3 billion compared to $2.35 billion in the year-ago period.