Frontier Communications Parent (FYBR) 24 Feb 232022 Q4 Earnings call transcript

Hello and welcome to the Frontier Communications Fourth Quarter 2022 Earnings Call. My name is Harry and I will be your operator today. [Operator Instructions] And I would now like to hand over to Spencer Kurn to begin. Spencer, please go ahead when you are ready.

Good morning and welcome to Frontier Communications fourth quarter 2022 earnings call. Frontier’s Investor Kurn, Spencer is Head Relations. of This call John President Stratton, joining CEO; me Chairman; are the on CFO. our our And our today Nick Scott Beasley, and and Jeffery, section the can presentation at and Relations be within of Today’s webcast Investor our followed the available Events website. Presentations

we Slide start, to turn Before please X.

results call from our uncertainties statements forward-looking that expressed risks and see Safe is will include disclaimer. you This materially reminder may a may to cause today. actual that Here, those Harbor that differ this conference involve

During the also release may earnings reconciled we financial measures, refer press non-GAAP call, in to which and presentation, and certain trending schedule. are defined our

And with the call I turn over to will John. that,

Thanks, morning Spencer everyone. good and

results. in you growing our is becoming infrastructure a press fast saw company of digital another reality. As operational transformation Frontier’s our team into the delivered release, strong quarter

If updated to an you company quarter. will overview you see Slide fourth the turn X, through

few million target the ended you Let We XXXX highlights. run million XX of mark X.X with halfway passings. through me crossing passings to a fiber our

expand a continued billion XXXX, serve In now million We billion X.X EBITDA have adjusted This We reach. customers. our generated EBITDA. represents revenue adjusted customer and broadband of $X.X of $X.X XX% margin. we also to

EBITDA, consistent of our that’s investments on and $X.X a generated focus XXXX, EBITDA acute Our fiber alone billion delivered and XX% execution, the fiber strong team’s have products In revenue results. billion $X.X margin. of

year announced when company and nearly we as leadership what review full is our first was time majority The growth As of ago It company. growth we revenue was the the the engine drive of fiber joined good to to of transformation EBITDA. with of the customers, new beginning for years And team end a back place. quarter, the represents new XXXX a first have in our strategy. year is Nick fiber our CEO and and X step importantly, fiber fourth always our accomplished. overall

each of you when In fiber, This the turn strategy, fiber, anchored chart our simple goals which within delivering familiar XXXX, is more more all a see has creation; budget. our efficiency. which exceeded customer the powered is And workforce our met levers and country, to we X. cell expected across to people will fiber these than high-speed broadband operational in You value Slide build key faster and four entire our a our building experience America, purpose, by improve areas, around purpose of by and now rallied. it’s Gigabit our

to Investor Many do of to in Our primary XXXX, Day focus remain we our when XX that. just remember you locations we to our fiber cover track build. will on is million committed building and fiber

are with use X.X million capital. than today, to a halfway locations more fact, fiber of is terrific This goal. In our we

the to build to to per a fiber our expect high-teens IRRs attractive to location. continue of in $XXX cost direct with We mid $X,XXX very deliver to pass

Our to committed a build focus. more that, create create of value point exploring our even value. critical most shareholder are we and to beyond significant remains stands And opportunity substantial

million committed million There government upgrade XX we copper to with X remains to As very could million to we million with build, million can fiber X upgrade returns. of to we initial another that attractive XXXX, the which beyond identified of highlighted X have QX organically our be subsidies. X also attractive in another locations, locations aid

won’t meaningful to advantages, current while our and be cost comes of we strict necessarily the marketing geography. with footprint And own our confined limits

industry. our is Our fiber of the build envy capability

penetrated, our economically the ambition. anywhere clear. see as possible. built of of we developed other building want teams a world the significantly America have for and to to in than can We lower in one with we to profitably it Where and broadband is And our best developed Americans be expand fiber as penetration nations, fiber bring that many meaningful fiber opportunity purpose

to where to-dos run accomplished. through are We And the left And will streamlined operations and increased by improved surpassed cost the for our to all down we goals goal a you reputation. footprint world-class by these fiber X, XX%. our we expanded and let them. our fiber deliver built team column. our see that We the Let’s our Slide initial ourselves have brand We right, And we and me savings management critical our have customers We our see strategy. to you broadband on board. turn have and XX%. set

We we scores churn. You can and do see did said this faster in high improvement we and expected. NPS our would fiber in everything record our than

X last work reached can have have confidently a we say is years, never And the the strong beginning. this we done, of built end foundation. the we that Over while

Our business next to enter is ready our phase, phase. its now growth

the will call this our And describe fourth and Nick? to in further next evolution with to that, Nick I in to review turn the quarter. over our performance stage

John. Thanks,

on growth, about beginning this slide. really to Let’s talk X. transition Slide our I love

We growth. into our are it’s drivers, two building financial fiber translating selling key fast moving and value on of and

hand these the it’s in you in are and to for I am the growth year-over-year that XX%. to you If expected the data customer consumption fourth is results business. quarter. With quarter left see triple by revenue see fiber a XX% to the side, will convert up be And at look great to up XXXX, pleased passings our time fiber

XX, year. pushing We’ll Moving accelerate do to on revenue this key EBITDA we fiber outlined here. And our levers expect it build. growth to Slide by we’ll deliver X the and

We’ll about grow our We will businesses. greater our premium for command premium detail. we pricing later these in and products, talk will BXB

our at results. QX look let’s First,

highlights. XX, see you quarter will our fourth Slide On

inflection building QX, our milestone the locations during EBITDA. XXXX our a Day, XX,XXX we XXX,XXX sequential reached new we we outperformance fiber a critical a in record and set Investor was quarter, by customers. a and Importantly, In driven fiber. This that in selling record added built broadband in

back revenue another quarter And last fourth last growth see call all healthy our had call. in to cash One free in we will you’ll we expansion. out, more across achieved to the businesses. that the of Scott which year. our this fiber that’s continuing Xx fiber of we context, from in For delivered continue operations about invest We we generate later more than first. flow share are

created. and our with a our to move into fundamentals build. in deep Slide dive building and late began sixfold, Let’s of the pilot take engine XX we scaled fiber the on very our I’m XXXX, fiber we’ve Since fiber we’ve pleased build

So how team in do first, as what assembled view Well, best we it? business. I do we the the

footprint. that continuously our updates calculates is model is to every we how the experience returns. our field. so based to fiber Secondly, building And highest the prioritize of we single dynamic, in the model a on the designed down deliver returns that in sophisticated build our areas household this our And

Thirdly, scale to of customer markets. in the and with early being we record mover our an build of we some our were seeing benefit are growth first already the key

we equipment, scale largest has the advantage, and us Lastly, our fiber fiber contracts labor, supply locking country multiyear second and our as used this the in for challenges the in builder in XXXX. to helped chain navigate

even you’ll next to plan if see go to And we turn this faster that slide, year. the you

locations end our Investor We’ll million you accelerate our to plan with we in in to right fiber that initial Our X.X year Day XXXX. on XXXX. our at plan the approximately with track bill shared homes million is X.X with

always we with we will And planned It we use in plan capital we be XXXX, always XX% in been now be how we tightly to our more built said, we operate has have faster will Given way and have use our we as disciplined capital. the business. in than repeatedly build our will flexibility XXXX. of this and fundamental

X.X us cost our target location of to within our the our environment This target we’ve this build Our unnecessary envelope to X.X Chasing $XXX this sell and balance to keep allows ability above install and year path. and well per million helps fiber. sales accelerate us labor our efficiently million our installation supply $X,XXX teams. as on chain put pressure as builds goal, and with

our as into our to Our must passings loyal these as we strategy, convert central to build possible. efficiently customers and transform company is

it about from talk and to move ARPU. building Let’s on selling fiber

XXXX launched were services. our strategy sales offering go-to-market customer simplified growth. our consumer We about XXXX value-added For to stimulate our and model and organization, overhauling and pricing

like to of to broadband It foundational stage X% this the customers, the table repaired. to to also We And us was deal our X% while in objective. brand needed turnaround. needed new tools have revenue gift sweeten this already of the growth. we deliver grow strong set for place That also during cards ARPU actions target we to the promotional is our result our And put use in what XXXX. by exactly

higher mean services speeds part charging fully build model In updated our loyalty. and more customers to with incentivizing January, adopt this our match programs pricing of new we value-added for will to value coupled proposition. And to

can exactly what than of promotions. at of XX% ditch delivering we training with the we and new ARPU more customer The a We speeds. than in are new choosing expected more customers also point wheels XX% are gig-plus early increase where results price

our than As art. loyalty becomes a earning of and improves, does an so reputation customer experience our customer science more

pair our at X the we with a the unparalleled fiber And infrastructure And in service again as per first Let again, we broadband reinvigorated clear hard few we gigabit of gigabit important hunt digital reliability, examples X Every network-wide. best of the you second price. year, company. me to Internet points network-wide. experience run launched we brand work last fiber our it’s growth-oriented the speeds service, how on over industry ago when through And launch just then best day, it that speeds leadership with last at launch market customer and become to a a center weeks improve pain few have fix moment offer XX. to provider our an the showed our fast put just the of transformation customer have the in We them. business. We the Slide we back X the the broadband our years, blazing did customer

in leadership points, points. to For for leader on customers to net to much promoter matter the find new board, score is fiber the fiber customer to first-ever example, our basis in app and and down our market customer answers team recognized working. investment churn it And simple areas being I’m quickly. most we our up speed. pleased latency that the broadband experience our our our Since customers, rebuilt introduced chatbot make came as that are questions then feedback our and XX is customer really And report we to is the easier based on like XX

On the next we’re momentum slide, you can in businesses. gaining our commercial see that

time quarter. and CEO, wholesale been we fiber first fourth For growth revenue since I’ve positive in the saw the business

bit down a Let business. me break by that

of adoption In customers, And customer computing which has newly mobile now driven wireless speeds. quarter. we customers. double infrastructure quick thanks introduced customer as have capability. carriers ARPU is developing approach our SMB, record-breaking all new we stronger services Enterprise network host growth our edge to partnership we in and gigabits fiber our our wholesale, relationship had the broadband a AT&T is fiber-to-the-tower expanded with That largest our record And X to and value-added up fiber in with using digits. sales major their signed the have

So to coming our the infrastructure in excited now transform these progress progress a and business. X company the you exactly share digital I’m businesses growing in of extremely into we’ve pleased to Frontier, proud since made and almost quarters. I with I’m joined It’s this years more with

Gigabit around relentlessly our is starting our consistently rallied to company what’s consecutive a have nine strategy. And created culture everyone and our be contributes purpose quarters, America the is to and our where that progress record-breaking delivered our success. at results team executed For building We cool has of recognized. against really we

Best a Work parents, Place working Best and Recently, Dallas named awarded we employer. Work to Place were in for to military-friendly

the I company pave are to shareholders. to that remarkable we’re over want all people here, building our our to our it what work long-term say year the to is a XXXX I I for excited transformation. for customers become with an for Scott, thank before really We creating customers delivered the value By in huge turn overcame We business. extraordinary best a XXXX who momentum. and the I am accounts, was you just is believe way in our company. challenges, a such better great starting us and team And

over Scott, you. to Now

with lower as lower of quarter net we I’ll up Revenue products. strong was income growth slight our sequentially financial decline Thank combined our good video with million fourth $XXX revenue. year-over-year by Internet adjusted everyone. voice morning adjusted million results. earned data you, and and services revenue higher network EBITDA. $XXX million billion, as $X.XX came EBITDA Nick from of of and This and a and costs. was offset revenue sequentially $XXX and start was fiber We marketing

bringing year net total million from $XXX billion. to our operations, of generated $X.X cash we Additionally, full

cash flow and liquidity of as focus of working business increased the underlying healthy potential Our our on cash capital result generation demonstrates and management. a our

both Slide we the strength XX, across of expansion base show growth and On fiber markets. customer our

net As XXXX. quarter did XXXX, a twice end Nick the noted, set additions of of end At customers fourth new broadband fiber the of as record. XX% the grew we customers more than fourth at at of XX% quarter fast the as of our end XX,XXX We customers we more than and XXXX, XXXX. had in

expansion from footprint, is committed million an In as of on making fiber our XX homes, penetration a for we to the path build our roughly overall markets. businesses, base broadband this coming and and our success million have footprint. progress We guidepost where are base X.X homes customers penetration solid eventual serves million eventual of both our the fiber our and X.X

to basis penetration on track of base, from last years at the These of XX.X% X XX% months. the to at and us expect target after the XXX rate penetration improvement XXXX. XX% penetration points months XX% XX% end XX.X%, In at the XXXX we up next XX to in XX end increased achieve put of up to after of penetration X from the expansion X our least XX.X% In years. our XX% in and footprint, to

XX-month to guidance. of XX continues exceed end Our our above XXXX and top the cohort expectations

management to in customer the a cohort our fiber to ability on continued XXXX ended great current in X year and assembled. team being first in prior penetration the Additionally, despite target months after confidence us months, XXXX. our our targets, we broadband getting slow give achieve fully results XX acceleration start These right expect growth at in off the XX% to XXXX of

overall revenue Moving growth X% for growth grew stage XX% to year-over-year, Slide growth. the to XX, our fiber broadband revenue return to to revenue mid-teens X% overall year-over-year. This driving XXXX. sets accelerated growth Consumer fiber business consumer our rate in

from talked fiber that to wholesale few quarters started as business financial grew the indicators leading the revenue past about X% Additionally, we positive and have year-over-year have drive results.

declined revenue consumer quarters product roughly consistent year-over-year both As with expected, copper XX% headwinds. legacy business and prior face as

been milestone, a set EBITDA Back in sequential Turning EBITDA to only Slide XX. we did our that In targeting subsidies. achieving Investor achieved of since we excluding we sequential the inflection fourth achieved also increase goal in XXXX QX, quarter, we ambitious Day. fourth year-over-year by have in EBITDA we deliver quarter an the but Not that XXXX, the of XXXX. growth

fiber factors program ahead growth drove inflection. plan, We be sequential continues with cost our reduction combined two relentless of have to a that and these EBITDA revenue

XXXX. cost that and year-over-year Our confidence momentum gives revenue us deliver in both growth we EBITDA in reduction will

ended fiber capacity and of with investments We of the we $X.X and $XXX will now revolver. build. billion of on to end of the turn liquidity We fund XXXX, At cash Slide million approximately to short-term capital fourth available the our XX. had $X.X billion structure quarter on

we addition sheet balance to In also strong the have flexibility. liquidity, healthy

Approximately the Our the fixed is net rates, of have at than and any end leverage was we significant XX% do maturities our of at XXXX. earlier not X.Xx quarter. debt

continue and timeline build. capital with maturity accelerating a Our provides clear to runway our fiber structure us

to target our this million on invested cost quarter, progress XX, cost and end savings additional in additional $XX of capital. Slide XXXX, million. business this confident to in remain increased some $XXX I and cumulative of will color our by We recently goal. $XXX bringing achieving approximately savings we cost the our strong to million returns delivering savings on our Moving delivered give simplifying We

cash which of $X.X of build. underlying We the our operations in billion cash fiber generated remains high-return invested flow business strong. net Additionally, from our generation XXXX, we in

capital focus will fiber deployment. Our earlier of the primary and of allocation discipline build continue over want the reinforce I to years, comments rigorous next capital several about to be Nick’s

informed gives is dynamic great attractive we IRRs conviction that fiber model, in by where Our build areas plan mid-teens we earn our build will detailed build. us which

Lastly, prudent management. balance committed to sheet we’re

But in accelerating above period the mid-Xs fiber to we the build time have for mid-Xs. remains be back our going with a path of range net before, said we of as a the may continue end slightly our long-term at leverage this comfortable Our target to build.

our to guidance. turn now XXXX I’ll

we EBITDA expect For representing versus to of adjusted XXXX, $X.XX $X.XX billion billion, XXXX. mid-single-digit growth low to

We as also growth revenue expect full year positive to be well.

to of EBITDA we not in year-over-year the seasonality, to sequentially year growth do While in positive grow every every expect quarter quarter. may deliver due

with Next, flat of approximately roughly acceleration build. $X.X we fiber the expect billion, even capital our of year-over-year expenditures

million roughly as range. remain top of build pressures customer the cost although growth-oriented build $XXX moving the expect to CapEx acquisition before, $X,XXX coming million direct end balance that we and said projected color, maintenance confident from We inflationary per $XXX our us have fiber additional I CapEx. location, of to For with of $XXX in are towards

to higher factors, year. loaded due half in inventory of and and to fourth than with front-end in Additionally, XXXX the we be of quarter the stepping second XXXX, expect first CapEx management the timing-related down the quarter then

I’ll reiterating XX. investment thesis close on our by Slide

First, household there for growing expanding driven data is strong by and fiber, demand consumption.

conferencing symmetrical that a that Fiber Second, and enable and download of and levels superior uses ownership speeds far popular exceed capability, is lower a has latency fiber cost lower product. cable’s gaming. like upload video

Third, we have purpose. and a strategy clear

building We of rallied America. have purpose Gigabit around our

to are access strong liquidity to with we for broadband. ample providing As and making it a high-speed us to connect millions have capital fiber, strategy. of we reliable, consumers we possible build and our to Fourth, fund businesses sheet balance

fiber commitments our quarter results our to Xth additions. proud record consecutive quarter. and every leadership Xth has of quarter marked of part builds net consecutive experienced on our record a delivered fiber consistently strong be that broadband and I’m of Lastly, team These

Spencer line back to turn the I’ll over open up call to for now questions. the

we now Scott. Thanks, Operator, ready for Q&A. are

Brett you line of Brett, Thank question And is from your our of very Goldman open first [Operator is line Instructions] Sachs. much. the Feldman now.

If you would proceed. to like

Great. broad-based the question. around And Thanks guess, a it’s taking something question partnerships. for I of,

fiber at scripted to have been out opportunities noted you’re region during ventures. doing started you beginning look of through telco that out-of-region joint deployment remarks, explore your to of that So have who your some also peers opportunities,

inflationary in-region of most if might I’m that? that to maybe be So format if mitigate curious ways that, some pressures of a if consider to strategy the doing have part question then And bit move just extending you’re seeing think mind? you funding are this there maybe the you and a And for that’s partnering faster. would you just in appropriate the even little And bit.

relationship You’ve your now with AT&T. infrastructure. It involves mobile extended

wondering opportunities more broadband carriers closely potentially their if increasingly to be partner wireless So Thank packages? point you’re I’m where would to other offering seeing you. getting in the wireless with services your and you

Hey, Brett. Stratton. It’s John

thanks. So question. loaded That’s a

the So ask half, this? why do maybe first Nick take take then we don’t the to I’ll second. and – cover I’ll I’ll

operational of to the critical us that XX unlock scaling really we’ve value, and original continue with created it But of build, believe which value I sort that And set performance, and the said, continue XX will opportunity to the million for allow course of regarding that makes management largest focused to reemphasize important crucially million. even and the really improving we So million committed beyond think organization you And sense our that’s we XX our towards on is are further particularly far it’s us to the execution do and opportunities call is remain create everyone work we we core raised could that in for highlighted beyond course, our of to point competencies do. important. our to what that really of we team identified front the think on by there. and a in the end business

as the our for households to we that And existing of our of that And footprint, of own sort us, of to the franchise, in million we opportunity are with type path well, X mid we inside high X of XXXX own what then first identified teens is, so a question inside same clear other somewhere million between those identified right middle see IRRs. create and opportunities.

of sort that’s So number bucket one.

$X profitable our unlock those value doesn’t unlock two the and it’s $X pass And state be are areas roughly, which, it to anticipate create our is million, call could could to that in they areas that a cover we near get opportunity meaningful itself own, subsidies, then are to that of it make what our local build. economic But to somewhat current for number Bucket or footprint. through balance on lend other opportunity within federal there. lastly, we franchise, And the our footprint, it, places to to indeed if are more a million there of whether its introduction also where could strictly adjacencies may near we may could not us. franchise

the that would foremost, are is of there made are we via inside a to that then, and we So capital to working end, pursue. initiative be target is of required business would we’ve And execute options could number where opportunity This we a set. an joint that to that might well may we source further that accomplished venture. best the it? be build, course, now refine, the a how question of determination next first And once

referenced, any decisions. internally. certainly do maniacally as way both of think The do well focused fiber to out have those on So footprint. that I the candidly, inside I to before opportunity expansion we we’ve committed say in work that remain out talk to about we make leveraging build, But just we have by closed started our XX. the capabilities that more the we But we definitive first drive and

want take part other you on So status Nick, partnerships? about more to the to kind that’s follow now. of do but that,

wireless you fact, three fiber to to the now proposition. deals well. the Hi, fiber operators. extended major I’m our in to all say as we’ve AT&T, deal Yes. going Yes, John. with with started that’s pleased of Brett. very the tower which But mentioned tower on Thanks, just a very that,

moreover, and and as think when anybody we of talk growth-oriented a those between And And also close have about element it think So, of in And that we customers. back Frontier one amounts heard the actually or consume operators, power that’s absolutely connectivity, have But where guys very unique offices, you pleased and company. central transmitting like space that, our very digital that. close about makes large cash that or recognizing consumed. with we with infrastructure like distributing forth therefore, where volumes asset that Amazon about data. to future, people to to of footprint of of are very the who companies data be attractive large us is wireless the could which concerned companies Microsoft any data but the it’s large amounts needed about

So to this importantly, we asset monetize we’re first proximity office but customer. through I’m and great most our consumers, has have our footprint, wholesale our to which central connectivity that division. power, beginning AT&T now is a is delighted

incorporating And offers? your mobile into thoughts third-party around any additional

up. that take I can John,

please. Sure,

lot the across as Look, plus with many of the in AT&T, in course, and Bloodworth of others CNO [ph] a we’ve industry, of we’ve before, experience said cellular Verizon Veronica, with got Yes. with Vodafone team. working the team John

it’s one things, grow as really is mobile going we’ve core So change, very, always high-speed we’re bundling which we very And broadband two closely. or such understand something said, together our does very behavior us watching fiber helps first of to that with something product. well,

reduce you’ve the hitting churn And record fiber our in and is as when or delivering growth you’ve high-speed As records direction right us today, seen we again, to are broadband helps after continues our in head seen churn. today, in quarter. still quarter it results

up it the offer. when bundle said today so broadband if something a we our an see with fiber moment, our capital efficiently closely. to be need building in spin and for and to. conscious could think use broadband. would We it’s that also have we needed So we distraction we that relatively excellent fiber quickly we’re of we don’t to such That the capital of But our doing an watching core are launch MVNO very

that do carry using do be can nothing if will we So our swiftly else, changes MVNO, capital behavior and if we an to we to on extremely that very we need such consumer move happy will that.

Thank you. Great.

ready we question. for Thanks, next Brett. Operator, are

you. Thank

Our from now. of ahead, please next of Cusick is JPMorgan. question the go Philip Philip, line

which require with Brett’s trend? how your think Thanks, then And pretty following going you I wasn’t Wave should your out pricing position. ARPU been talk looking can like can steadily. edge you your I quite the that what comment about a the you Fiber on quite about where talk that about is didn’t growing that. Maybe how we versus that and had little But maybe about sure then understand a attractiveness forward? think guys. to fiber you How expect has be If government going you in promotions, bit and of funding up and which on coming all question, opportunities, do that? current capital, it, is X Thank you. you’re markets

I I pure-play when start states, in you capability markets is spun draw years ARPU the allocate we our making the had our move our to we’ve resources And obviously to means we’ve and various engines. businesses. And that has sales the the will attention the mean, think operational been funding. color to perhaps X successfully. on first should John our some can thing But how of over Scott, come that doing so, sales about bead Yes. up conscious most I think as period to over builder we decisions to that things largest add and you for become pressing quickly. Look, I ARPU, and the then to last is to fiber very done extremely we’ve everyone’s very up want to in about scale And company one that the our

go-to-market pricing grown our years. customer stage by value XX% But nearly last and in Our optimize where looking the transitioning full we’re revenue to we’re the now activities fiber realize to a help has our broadband offering, X of hand And little some the we’ve that think, that Scott, already how a to superior taken. perhaps, I about doing talk bit actions delivers. we’re to and I can now you

the in We’ve of it we and Phil. year-over-year. all for growth the we’re year, it healthy for saw new basically said better in Thanks our pricing to a as in little On down year base, such rationalized use a right. the by that ARPU into flat through be recently targeting that certain place QX growth really be QX. Yes, X% segments flow flat flattish we question, should and actions. a We’ve year-over-year in ARPU, that’s QX, QX lot put will expect ARPU it, cards, end and job we roughly gift our you doing was of of QX this

significantly of engineering, you sort we’ve companies, pretty the let’s of call expect be across thousands terms realized. Yes. meaningful jump bit as bead part maybe very a scaled of whole XXXX midyear thing. of will that the math our whole be for And begins the ‘XX the a are well. up be up in internal settled would federal in and about It in allocated say with process, gear know available more thousands of to way. just last to to it, Phil, and as broader sort But lobbying it, planning, mechanism the probably beginning the I’ll on the process, of you management, resources on country It’s government funding making those looks the funding that turning required to late funds to the and coordination big are across in grant capabilities, and There see program you’ll initiative. a project bids funding then the states

be in expect initiative. important Frontier to participate think we could that And significantly does quite us. to So it

footprint our economic and to As there become make today would level with sense more on X within to we’ve of are mentioned, million homes not subsidies, that basis, of stand-alone $XX but subsidy overall X we economic sort absent could pass a around million that something pursue. million some sit worthwhile

One pass can well you finish of that’s addressable. out not though, our maybe gotten when the within things be that become as that the don’t obvious, profitable of subsidization, that build. enough direct think homes where subsidized those bead to that now there sort reside get geography, of those broader throw to you because be more suddenly they a you build, clusters is become but require close homes part would about as may you’ve They a more long

are of numbers So our footprint. sits those interesting. both kind of outside that And and actually inside

the gain operations. So you and move marketing, quickly where advantages. terms you you allows of sort and adjacency, distribution, near of in service quickly speed of to you can how scale build It have reputation

So, all more the so there develop. which that’s for plus of about today, for on as fundings continues of situation The this both it. funded to go the evolve speed executed, be is ventures partnerships, open question joint of can notion won’t it for answer and are something availability is kind we’re but to open this come seeing to the the But discussion. we where all with certainly and it like we might how of to be of today,

can didn’t I if now? ARPU end Scott, at the quite thing. follow-up be John. year? target the Thanks, I we ARPU one the of growth comment. Should Is looking understand your at that

growing should be we right. again. by Even sequentially That’s QX,

QX. should ended again sequentially. the we pricing where we with we’ve of be flattish be actions cards QX, rationalized of taken the to gift I expect results growing we like But with QX, use said, by the, again, So

much. very Thanks

Thanks, Phil. we Operator, ready are question. next for

Thank you.

line question ahead now. Citi. go of next the please Michael, Our from is Michael of Rollins

Two Thanks questions. and morning. good

get breakdown a I are as beyond from fiber versus additional rates copper any you’re on if like just possible copper move contributing look cable growing if you to looks EBITDA the might provide in of the revenue. operating in it in as seeing the slides leverage broadband these curious impact vintage you you am of changes in a operating on some EBITDA, on earlier just and opportunity First, take how future And with factors. segments reactions what doing step market. into share what’s And wireless, more you the some then are you’re copper. been there on did have to curious side? I particularly go-forward on curious about the of step and environment. may at the relative market of share, talk the profitability detail step-up if could And just seeing look your particularly fiber I’m between in could fiber on secondly, the the Thanks. discussion just you basis fiber in show you there two down what out happening

majority previous of that one here. share of which are in I same market highly Nick a as in fiber-oriented, and company taking Look, this Michael, digital penetration time the on in our towards fiber footprint, calls. of the growth-oriented Thanks in we being environment, the it’s our we terminal we in competitive broadband operating Yes. or on broadband fewer broadband general, U.S., At a discussed markets the course, competitors. calls, we have as transition said of we is previous infrastructure XX% market. head have XX%, But think as our true to company, we

of for remind XX% to everybody, is well, why we couple Now, believe reasons. just do a doable,

historically, were of or our many at markets that penetration. above that Firstly, level of

market to have in and focused more we So, within getting become where it’s we structure a sense, before described. back as efficient I already were the operationally

above states already level. have we that key of Secondly, got at some or our

So, the we got the we at we consumers. best to And best highly know price it’s doable in product attractive believe thirdly, environment. today’s that’s have

think we as cable copper seeing builds uptake talk the good still are impact wireless multiple think versus think a before, customers And We that the And fiber a for The you of fiber we for yes, so us growth one on that stations, XX, average from if of on, and of the of We or broadband. fiber. or is as high-speed if wireless conversions. it can sources very in XX said mean, gaming movers I on full fixed fiber XK you available, on shared the our of so second. we about access, And so and majority a different devices is with of market symmetrical is proposition it cohorts early X, perhaps Scott, with you Scott are coming feature household economically take will an now. it TVs, self-limiting. and cellular about to it’s

it therefore, on the around more Scott, very people serve, there. tends segments, of bits base. to it FWA will and of fiber. it other pick its our you different town, but when that? feature sorts copper things, And think those construction the sites, But think do is to edges choose up will market, of rolls of the serves has a into we So, purpose fiber nibble itinerant want groups, sites, building I

stepped fiber Michael, is trend EBITDA, several of quarter-over-quarter your of same EBITDA performance the was step-up Sure, for are quarter-after-quarter I has years. This copper fiber around the a continuing this because On copper the and overall Scott. growing question would last the and declined continues EBITDA up we say, we company.

and growth So, first million a we that consumer was revenue $XX step-up the was fiber business had revenue EBITDA. several We had on strong growth, wholesale sequential time fiber driven. fiber revenue in which finally, years. Most of really

was of of on revenue most plan also that our are then So, ahead reduction we But driven. cost efforts.

becomes reductions, our base, fiber an better as increasing rationalization, of headcount, efficiency in cost our so part those fiber workforce. benefits And whether it’s from footprint

So, all the EBITDA drove $XX fiber things the in of quarter. those million step-up over

Thanks Michael.

Thank you.

we take question please. next our will Operator,

ahead. Jonathan, please question our from Jonathan next is go of Street. New Certainly, Chaplin

going of I the some go same in acceleration the opportunities to the deployment about next pace million back And in bit And XX the for ‘XX, tend in of then you fourth it bid the bit so, elements your The that But if expecting sort allow indeed, a of phenomenal the of taking to see pace it sort time, same after? deployment in can all together theme, ‘XX, initial faster are constraints year but the that you a XXXX? year change with drawing requires of tie limiting if in you slower build little machine comments is in is in deployment you than million of talk an to the edge sort talk Thank ‘XX you. of attention this help what And terms of ‘XX still the fiber where you at of to that Great. was at will at you Thanks year of are bit, of footprint. and XX and question, little the built us, industry. for can? guys. a the be this the will the about phenomenal beyond target, markets those hit little on quarter

we Yes. of that they broadly go, to see about going the it XX,XXX we I Hey, of only remarkable is to that quickly and delivery Jonathan, when ago, And pass here. about terms now those to the the to to efficiently to pretty remarkable. where the started. from And way to I XXXX to we ability talk briefly whole a you will build go approach that think fast a beyond at distribution to as of with managed years X it’s team is build complement X.X XXXX pace. also million it’s capacity, start is the the infrastructure and very Nick. competencies, it’s the in of it’s about But rapid is it it that, I I service of similarly it organization in effort synchronization, just our scale is internal our here the business. continue scale installation scale of ability about capacity, and and and to sort to to John. about scale to and am pretty ability but and When to pretty ability real our The talked whole you the not where very build how scale needs itself, improve all that the accelerating think execution million to balance effectively what’s ensuring pivot the forget XXX,XXX have the across But the scale easy to X.X were delivered.

day-to-day you start, perfect you terms on I get that how So, in the in fast to the to I when thing everything basis. way better go, you as okay, this, a doing make first you start just the scale of you moving are then can do to do rational go And about execution moving how beginning, you forward. this and say,

think if maybe Nick, year how next. in sort and this what why sort the for on So, you of of can we X.X about comes start then

those I of points, on. a as couple mean just to echo say, you I important to two land facts, think thanks. John Yes. Jonathan,

end that Firstly, are ago. our said, actually only emergence John builder ambition X.X building delivered X the mean this the year that at-scale exactly we year. out are this fiber build I at million build year. we the into we years be have will we go of to set And fiber will passings And saying year secondly, accelerating think the as we as by the

of this when Now, have business to to real got here, we up I to scale I operational with And think building this element back, and every take well. we strategy a or done we scale said, almost John fiber as had step rebuild pace. our execute

– In and build gives than you originally XX% XXXX had faster said, predicted. that business. is maintain the entirety we XX% operationally, a our capital, for more we both as of fact, in a about know, as which optionality operational already some flexibility how capital is to what was than the have as us optimize mid And the And across huge on company to result, our return strong discipline. high always results we teens focus some

if of to million We straight year passed conditions and think for think get to minimum we build our think on. ready homes are that. this further question, operational a in at the build answer accelerate straight way from have here tank plenty is X.X got about the I of ambition when to the to the So, gas the to

our take will we question, Operator, next Jonathan. Thanks please.

you. Thank

Frank, of is question of the from James. Frank Louthan go please now. Raymond next Our ahead line

you. Thank Great.

of far side, you hearing are Where as against what getting business as small fixed they you in about economic Thanks. And preparing current traction the On can the for? the then what that? on bit very wireless are the you come little Are comment any end you are backdrop customers, a that most? environment? seeing

are – Scott, perspective? Perhaps, what customer a behavior we from seeing of with Yes. could the sort you start

on macroeconomic the most which seen conditions Sure, basically Frank. Two days We track we it metrics are to broader base. outstanding, of have impact are customer important closely, sales and our not of a flat auto any with remained healthy, where last nice have down an customers because portion year. Bad expenses we actually operational higher our of has the been on improvement. consumers were trended and pay, they which even us debt

customer it closely, impact base. seen economy but watch an we from broader haven’t the on So, our macro

Look, Frank. on Scott. Thanks Yes. business,

company. which business very and the the operations, frankly consumer revenue high We buy and these is into machine of seeing is on the customers. new a as AT&T. our agreement increase we are our focus flow essentially also much greater volume past medium pricing was talked in is Really favorable talked said presentation, and that Frontier units, the with are businesses a P&L serving business sized services past overall small in through into operations ago. already first SMB, positive a where only our we the This driven we and by indeed, driving strategic mix, where business quarters customers leadership call. just into improvements much between our our all from that are by earlier which a But area operational fiber sales sharp its over across where think about of synergy now Fiber part order couple symmetrical grew a business propensity leading an I is more driven that significant the indicators had seeing about in into consumers been X% year-over-year. in on three have business leading And performance. very that higher P&L mix, And to the welcomed thing the of there And same is and the to as flowing through and are positive change flowing quarters way. our within impact. have and and small high-speed efficiently and great couple we both ignored by wholesale, the we financial a through this

pricing back to built that. and a the but had others really propositions, things take businesses, tactics team we perform have going many, continual you we and thousands so go-to-market just to. in we step so but flowing so And course, perhaps and well connected business draw starting of okay, market see many we are small your propositions, But to built who a And past marketing Frontier into on, decline, is expert number we are that. now passings not up overall, if which are doing results. the of a and And gone in attention say, when why through of back a them, on

we of overall First is which market. of small a part are the

many in senses, we So, market do overall dynamics. not reflect

our shift now, accelerating said less on Secondly, enterprise we some to our if just base. customers, operational large customers towards certainly, whereas focusing strong we our SMB marketing are And peers. are, our synergies consumer I about number day-in, that beginning targets in are got team as across much going our business pricing have exposed we of are large enterprise And of have there this with than the anything, measure And progress enterprise improvements executive a strong really new a businesses think market. of to we day-out. all to really got drive we forward, operational

inflect sequentially, on first to business this The was which growth step fiber we have achieved quarter.

is grow the And business think expect The our year-over-year, we fiber going fiber growth second to after which offset to third to is XXXX. and for step to that XXXX. we declines, do be sometime copper happen will revenue in

about our progress So, our in business I optimistic segments. am

we great best yet have made come. start, but to think a I is the

Frank. Thanks

very much. you Thank

will next our we Operator, take Frank. question, Thanks please.

next Greg is question Our your open. of now Cowen. from Greg, is Williams line

wanted business my the questions. question off last taking on Great. feed the on Thanks optimism for I services. to

your wholesale know you the to And securitized wholesale can I raise that raises sounds half Thanks. explore, so? now the debt. Is your stabilized that It expected debt you about you bonds And on are your question assume from specifically, guidance October. something need guys. makeup? has open doing more was is markets off tap existing So, pulled in overall just debt precluded securitized to is covenants opportunity does you about XXXX. that in on that Second wondering debt capital do last or your maturing like will today, still year-over-year? that

Yes. is Greg, this Scott.

Let me take both of those.

implies EBITDA’s the and XXXX XXXX. in grow for year-over-year XXXX stabilized business growth guidance our So, slightly versus wholesale to

Now, will ‘XX have growth be primary in the consumer will engine we revenue.

fiber consumer on together are wholesale and say business capital we should in I funding, along range build, allocated question further but stabilize. have are transformation your of considering the would On more funding a debt We to second and mechanisms. that

We have significant capacity first lien.

We us. other options ahead have of

continue but are confident all accelerating. in funding are ability build the exploring options, and continue our to So, fiber we really

our we next will Operator, Greg. Thanks take question.

much. Thanks very

is Deo of question go now. the from ahead Del please next of MoffettNathanson. Our line Nick, Nick

Hey. Good morning. Thanks for questions. taking my

think and First, some linked a think the as to promotional we you are net changes making perspective, should obviously about we pricing from being adds. about that of

at think all tools, we that, it’s sort to comfortable as net feel be about So, result pricing going on be that put plan cards that’s an rely the through adds, in going headwind to should that not do of or any you and your to we less gift to issue? or you promotional worried

best this a we the Nick. are Good just in every and that. pricing it’s all it’s think something of promotion dynamic quarter. And of big question. at on recognition deliver and of lots week want about that is watch lots through reflect single all product, Nick, best for the Thank I this and ask you moves the we time. And every Yes. the single a that And But say microscope And and the time. the detail. we have that underpinning market would it we the to moving players all is because we all and price. thoughts our

determined the the by is appetite have underlying that’s the best consumers believe technology product the best a we product But price And best strong is best for have. price. we something something is market. the at driven the Now, by that

the look and strategy had and so through with brand years, promotion X troubled at couple over pricing pricing, clear compensate to it’s Frontier on. years before, and we as that Now, of a the ago it evolution bankruptcy that our needed of very tools last

the is product, we network As as gig which improve these, just launch were as have high-speed we launch as pricing we X the begin first to really there symmetrical we the started, some nationwide gig give come. exciting symmetrical but ladder benefits and to And options and that wide, connectivity. X services, for symmetrical brand, still more the we extend repair the we become value-added customers first and to more many ones layer of in enjoy to

repairing. the level see we to ability at repairing. So, brand see consumers still be our by a different We accepted and price

inch-by-inch, price charge so we the market. to best at product the to And moving right what brand are mile-by-mile in we repair yard-by-yard, the for and is think the

cable cable any know price, Now the that can’t what frankly, high-speed our symmetrical we services because product we and at does deliver can’t, network that.

and come seeing in see on we And X begins kind proposition also launch our price So, with as recently. services that are we cable gig separation of to what of to between the a core do. we premium our

So, we whilst watch We provide brand net and best of for price. carefully. product a it’s the as always so can add Frontier and we charging consumer the the repairs we best something improves our knowledge And price product. that best gross the as maintain want believe performance fair to

cost on very all And buckets Okay. have within you move here are progress detail. Scott, big a to your million? timeframe obviously the next cost achieving respect from how comfortable What made target? can target rapid you with savings one to you are – with for that to have out the $XXX laid you Thanks the very the for Maybe before attacking that to progress you get that are initiatives.

Thanks $XXX the Sure. end in are we XXXX. our of million one, by Nick. very confident target achieving Number

sight north different of on clear We savings. little cost buckets million of are to will $XXX and the with get line a $XXX color you I to of already beyond. give million a

out of lot still to in costs frontline of improving them of us productivity giving a field better improvements tools system. the take have We technician the ahead productivity,

We automation. have a lot of back office

and the automation very of do in a still to journey there. immature lot are We have work

and mentioned, says – they their day. are capabilities service provider and call want for a Nick to investing we As wakes self-service doing in to that themselves nobody up customers lot Internet

for takes of customers, So, it the costs out we make want which easier also system. our to

improvements savings a confidence range have. will target we a the exceed have So, million we $XXX and we of wide lot that of cost that

for joining. Thanks our that And call. concludes quarter Nick. XXXX Thanks earnings fourth everyone

Thank call. you. today’s concludes This

You may now disconnect your lines.