Frontier Communication’s Q1 2016 results included a net reduction of 10,300 video customers. That included a drop of 6,700 satellite video subscribers, compared to the fourth quarter net reduction of 5,800 video customers, including a reduction of 5,400 satellite video subs. As of March 31, Frontier claims 543,400 video subs.
However, the operator reported that it achieved solid first quarter results while preparing for the flashcut conversion in its new California, Texas and Florida markets that it picked up from Verizon. The somewhat bumpy conversion happened April 1, and the company says it’s looking to realize financial results from its newly combined business in coming quarters.
“We see enormous opportunity in these new markets with millions of new customers,” Dan McCarthy, Frontier president and CEO, says. “In addition to increased scale, these areas are each very attractive with significant growth potential. After a month of operating these properties, we are very pleased with the progress we have made and we want to thank customers for their patience during the transition period.”
Frontier reported first quarter 2016 revenue of $1,355 million, operating income of $58 million and net loss of $186 million, or 16 cents per share. Excluding acquisition related interest expense of $188 million and acquisition and integration costs of $138 million (combined after-tax impact of $200 million, or 17 cents per share), non-GAAP adjusted net income was $14 million, or 1 cent per share, for the first quarter of 2016, according to the company.
