Frontier reports fourth-quarter and full year 2024 results

• Delivered full-year organic revenue growth for the first time in more than 15 years
• Accelerated full-year organic Adjusted EBITDA growth
• Added record fiber broadband customers in 2024 while continuing to grow ARPU

Dallas, Texas — Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier”) reported fourth-quarter and full-year 2024 results today. Additional information about the year and the past four years of the company’s turnaround can be found in its investor presentation here.

“2024 was a landmark year for Frontier, marking the culmination of an ambitious turnaround that started when we emerged from bankruptcy in 2021,” said Nick Jeffery, President and Chief Executive Officer of Frontier. “Our goal was to return the company to growth, and in less than four years, we delivered. For the first time in more than 15 years, we achieved full-year organic revenue growth, propelled by 19.2% growth in fiber customers and 13.5% growth in fiber revenues.”

Jeffery continued, “This transformation is a testament to our entire leadership team, our employees’ relentless execution, and the power of a clear strategy and shared purpose. Today, we stand as the nation’s largest pure-play fiber internet provider, bringing critical connectivity to nearly 8 million homes and businesses. I am incredibly proud of what this team has accomplished in Building Gigabit America and creating a fiber network that will have lasting value for this country for years to come.”

Full-Year 2024 Highlights

• Added 1.3 million new fiber passings to reach 7.8 million locations passed with fiber
• Added a record 385,000 fiber broadband customers, resulting in fiber broadband customer growth of 19.2% year-over-year
• Consumer fiber broadband ARPU of $65.54, up 3.4% year-over-year
• Delivered revenue of $5.94 billion, operating income of $353 million, and Adjusted EBITDA of $2.25 billion[1]
• Executed cash capital expenditures of $2.78 billion plus $463 million of vendor financing payments, for total capital investment of $3.25 billion[2]
• Generated net cash from operations of $1.62 billion
• Achieved $597 million of gross annualized cost savings

Fourth-Quarter 2024 Highlights

• Added 241,000 fiber passings to reach 7.8 million total locations passed with fiber
• Added 97,000 fiber broadband customers, resulting in fiber broadband customer growth of 19.2% year-over-year
• Consumer fiber broadband ARPU of $65.98, up 2.8% year-over-year
• Revenue of $1.51 billion increased 5.6% year-over-year as growth in fiber-based products was partly offset by declines in copper-based products
• Operating income of $86 million and net loss of $118 million
• Adjusted EBITDA of $595 million increased 8.4% year-over-year driven by revenue growth and lower content expense, partially offset by higher customer acquisition costs
• Cash capital expenditures of $792 million plus $48 million of vendor financing payments resulted in total cash capital investment of $840 million
• Generated net cash from operations of $294 million
• Secured a $1.5 billion delayed draw term loan to efficiently fund our fiber build

Fourth-Quarter 2024 Consumer Results

• Consumer revenue of $798 million increased 3.1% year-over-year as growth in fiber-based products was partly offset by declines in copper-based products
• Consumer fiber revenue of $557 million increased 15.1% year-over-year as growth in broadband was partly offset by declines in video and voice
• Consumer fiber broadband revenue of $436 million increased 23.2% year-over-year driven by growth in both fiber broadband customers and ARPU
• Consumer fiber broadband customer net additions of 92,000 resulted in consumer fiber broadband customer growth of 19.8% year-over-year
• Consumer fiber broadband customer churn of 1.31% compared to 1.20% in the fourth quarter of 2023

Fourth-Quarter 2024 Business and Wholesale Results

• Business and Wholesale revenue of $692 million increased 9.0% year-over-year primarily driven by growth in fiber-based products
• Business and Wholesale fiber revenue of $333 million increased 19.8% year-over-year driven by growth in data and internet services
• Business and Wholesale fiber broadband customer net additions of 5,000 resulted in Business and Wholesale fiber broadband customer growth of 10.9% year-over-year
• Business and Wholesale fiber broadband ARPU of $100.08 increased 1.2% year-over-year[3]
• Business and Wholesale fiber broadband customer churn of 1.31% compared to 1.17% in the fourth quarter of 2023[3]

Capital Structure

As of December 31, 2024, Frontier had total liquidity of $2.9 billion, including a cash balance of approximately $0.8 billion, capacity on our delayed draw term loan facility of $1.5 billion and approximately $0.7 billion of available borrowing capacity on its revolving credit facility. Frontier’s net leverage ratio on December 31, 2024, was approximately 4.8x[4]. Frontier has no long-term debt maturities prior to 2027.

Pending Acquisition by Verizon

As previously announced, on September 4, 2024, Verizon Communications Inc. (“Verizon”) and Frontier entered into a definitive agreement (the “merger agreement”) for Verizon to acquire Frontier (the “transaction”). In light of the pending transaction, Frontier will not be hosting a conference call or providing a financial outlook.

The transaction is expected to close by the first quarter of 2026, subject to certain required regulatory approvals, and the satisfaction or waiver of the other conditions to the transaction described in the merger agreement. On February 14, 2025, the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired.