Frontier Communications Parent (FYBR) 2 Aug 242024 Q2 Earnings call transcript

Good morning. Thank you for attending today's Frontier Communications Second Quarter 2024 Earnings Call. My name is Cole, and I'll be the moderator for today's call.

[Operator Instructions]

I'd now like to turn it over to Spencer Kurn. ahead. go Please

Nick welcome Call. and Investor Communications' Quarter CFO. today Second and and and Good Beasley, Scott is to Spencer Earnings our by call the This joined of our Kurn, XXXX President I'm CEO; morning, on Frontier Jeffery, Frontier's Relations, Head

Today's Investor in Relations Events presentation within Presentations and available be webcast followed website. section can the the of our

include Slide please this to X. expressed our cause disclaimer statements may This conference a start, safe may see we today. risks on Before differ involve that is reminder call that those and forward-looking that harbor materially uncertainties from results actual

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

Nick. With that, I'll turn to the over call

everybody. with excited Good from here highlights the Spencer. and share second Scott, quarter Thanks, our to morning, results. I'm I'm

year this in full our revenue is consecutive growth delivered and a proving results. revenue after We release quarter organic of quarter our As said of we out and QX you decade. return strong this press was that quarter financial XXXX morning, in quarter. more second of growth saw quarter year than growth, would operational we fastest that our and another the we're to

growth from mid-single-digit pack onset, builders us From broadband alternative of on growth This was cable. more driven has margins. build in solid as America. has by another than and adds fiber and This EBITDA this acceleration ARPU team further strategy our the focus record us net and EBITDA fiber value Combined delivered delivering the relentlessly for strong as of Frontier quarter a with our the we fiber other expanded elevating growth. and cost our we attractive proposition focused executing management, long-term legacy of positioned Gigabit separating

with our for Slide X build all pillars initial sell fiber, results. can of strategy service Let's we X, these efficiency. improve quarter, this million fiber, We twice have long as smaller XXXX, and set network prized million our It we build. into asset. customers pass On about XX as increase exceeded pure-play talk strategy: starts In passings And our the an now We operational you the a in fiber the fiber our with of to behind our many see the fiber of nearly more locations target all significantly X closest built next than and provider passings fiber providers. tail total. have fiber.

and anyone fiber. culture The our context, lead employees Take customer XX,XXX In program is added called our is installed anecdote a can works the customers. fiber the an the in new started that more And of how Lead it Internet. you our look record reliable way at base team company our grown On of we've commission business customer's supports acceleration. to share half I'd year. XX%. than by our like broadband fiber When second to pillar this, we QX, is give a you a first sell year, fiber sense for Our to that's the XX% incentivize own home sell a fast, Last to in or a we sales submit business. to the a year, once last

fiber threshold in I this our highlight minutes. XX% want also about Why in ago. just aren't that's techs a this the year to in And milestone the incredible We we our they does importantly, selling crossed almost What's a fiber, delivering they're a service few reached to almost footprint. of from so that have is fiber far double that matter? X/X our leads, this field premium talk year, customers, major base selling I'll which submitted quarter. penetration

with mature Well, in these product and cable historically share at it demonstrates matters on achieve market competition most been It's and XX% that weakest. markets full are our our superior of fiber our evidence where a our because least that Crossing our base goal brand ability our high has fiber has our also returns brand sustainable that is of fiber attractive commands market to and investment. fully recovered. share markets

If note achieve we're we can our it our while can that penetration increasing everywhere. important growing it's in ARPU. also we do goals penetration base markets, And to

were most universe. pillar the most This to brands When customer now put improve back in across business. the to philosophy is unloved our one leadership sectors. one deeply is team third we service. made hated Three center the Our started our we commitment customer a ingrained ago, the at this turnaround, of of our years of

themselves. for customers, our and years, Friday then have improved the more we longer, are thousands team and work more our for calling major few significantly systematically to of us of examine X our every and customers met the irritation. with stay our hours last Today, the The down, were remove in brand customer Over has tiny leadership they satisfied. why and reasons results calls has are first we speak us customers thousands sometimes all place to

until while pleased this things to and we run will better, an And opportunity we I'm be not with to have fix. out we progress, even stop of

cost-saving remove to we digital IT is is employees pillar new areas here we at Frontier automation. a year, to target, identifying with that shared our cost, operationally drive and cost with tools of savings teams become can we and where Efficiency while Last scale fourth team complexity we achieved initial efficient. opportunities. more double Our uncover sport continue our and

benefit legacy Being hierarchical the speed a more competitors. larger, gives our us compared simpler, to digital of more organization

has America The and last are to largest relentless where the pure-play in Internet revenue years brought X Over fiber profitability. company growing we growing today. us execution of with

an of become even on we becomes that said see stronger EBITDA. a revenue of X company. our as customers, You that represents fiber always majority Slide and share We've can the our business, fiber greater

also our Net evident success improving performance, strategy the Promoter of it up in Scores. is While our financial shows in our

On It's industries everything do. measure why see of been the indicator progress on leading X, many this our you'll Slide here we is performance. outcome short as of that so NPS nothing that has astonishing. a of rely

Here's what is the saying. data third-party

has fiber improved NPS by over past XX approximately the points dramatically year. Our

our with the legacy are with Our higher now that. Think they main cable competitor. cable customers are is Cable Xx that closest they than product. satisfied saying and than about NPS is Internet Xx our more are our legacy fiber competitor

highest NPS any standard We set Internet provider, Frontier which has also new fixed the have our industry. the now means of for

is that improved our NPS approach can here result You our over and the X our past improving systematic the journeys. of that increase consistently has customer years, to the this see demonstrates

delivering Now our A growth let's Slide growth. financial the take for higher value-added and ARPU, ago, back quarters a which superior talked shareholders fiber about services, to highlights our company to customers, gigabit put in X. offer our of our We We speeds leads benefit business. and in look sustainable And of customers ground, product. our for that growth. fiber driving our I model higher of we revenue all invest revenue we the our more at on connect couple

businesses We And services It's customers they're the speeds in it grew a passed that ARPU and it. fiber with because growth. experience, out customers how Internet enhance of value-added fiber. are repeatable our homes double here's that's a We product increasingly very best digits, We the broadband have QX. by to pay grew flywheel choosing record gigabit and market. number our driving for proving their willing to in we and played

when growth this you to revenue fiber growth accelerated revenue a continuous overall delivered on XX% we with cost our As again combine efficiency, we result, accelerating revenue company lifted year-over-year. our growth quarter. X% growth EBITDA And our and X% focus to

X Scott, strong we're recap it simple revenue hit momentum, our growth. turn to Slide priorities. let's I milestone This EBITDA XXXX accelerate to our on to changed. priorities outcomes: over maintain a focused and our our year, have turn operational growth Before And not X driving

we all targets. see to exceed track of or you are meet As our can results, these on from

investor the at on our forthcoming financial shareholder We'll provide and more driving value detail goals for our path longer-term update. increased

is said last will quarter, on the we review strategic our timing in investor process, update still As depend which of our flight.

on we'll as to have posted this we something and look as So everybody update, forward soon we to share. keep timing

builders wrap say to you want Before I thank America. the Gigabit up, of to I

we've innovate for As to our turned benefit the ourselves around business, turned around our we've pushed and morale of customers. also

fiber. You We in may XXX of team hosted in the first our thinkers is announcement we of This use future lab that to test the up a XXX at fiber led existing least technologies our of seen to of This provider up first can have last were network this support industry speed we successfully Nokia week innovators. and an strand fiber innovation single over at with our partnership gigabits that to Texas. by proves brilliant gig. here to trial big trial

group, an communities. what accomplished to been of have awarded proud team, the patents lives our entire Fiber and Our of Labs more in X confident the than power technology I'm more last ever years we've history. Frontier's in than change impressive and in

read second a truly our sustainability You company about quarter. extraordinary report more can progress in in building published the we which our XXXX

over it I'll results that, guidance. Scott and our updated with to And cover to turn quarterly

you, good and Nick, Thank morning, everyone.

financial in QX operational quarter. strong continued and Our second the performance from

X.X fiber with on quarter operational track achieve our highlights the XXX,XXX We goal passings of year. on to remain million passings this a XX. start our record Slide Let's added and in

As rate record we ARPU QX, in a flat quarter, Consumer added a Nick XX,XXX last was year's fiber broadband roughly while X.X%. solid customers of in growing X.X%. versus at remaining also churn shared, broadband fiber the

continued. initiatives savings cost Our

of program since securitization our on X, we We raising fiber savings million have XXXX. million. we the completed $XXX achieved second Last, $XXX July started in

of XXXX. As announced, to remainder loan a of term of used refinance while portion the our proceeds the term we to extending part loan, we previously our

Slide highlights. our On let's review XX, financial

QX Our year. was X% of second $X.XX quarter versus last up revenue billion,

quarter in of a at growth this $XXX legal of as was highlighted a revenue due of second Nick more pension than We row $XX As decade. as and our well loss, in primarily settlement. the fastest million of million onetime revenue quarter net to remeasurement reported a the our growth noncash beginning organic a call,

Our represents consecutive of our adjusted quarter million $XXX adjusted of fourth EBITDA growth. EBITDA

total generated XX We also operations, the to $X.X bringing billion million trailing net from this over $XXX months. of cash

by is XX% fiber progress shows This fiber goal XX.X%. that XXXX. penetration of is XX more an of last XXX achievable. locations, indication grew important to terminal and Slide year-over-year we rose base. a basis In turnaround our more versus of million years targeted ago, year. broadband We the footprint since started number end is XX% fiber penetration customers our this the than our X points our have we up a growing X.X Since XX% better, fiber total or continued base customer than

markets, mature and our legacy in these We in and we fixed room higher. the see face competition even climb wireless of even are to our penetration availability, still growing customer base cable for base

growth, ARPU with we healthy fiber tandem our customer growth in markets. In delivering our are

grew by in long-term we of X% X.X% target This year-over-year, quarter, ARPU our line right range to X%. with

price drivers: annual Our our expansion result ARPU customer growth adjustments the of services. tiers, and faster the was speed X value-added of

In value-added YouTube service, including new new over X speeds took home of QX, faster, at whole customers XX% customers products of or like and and X XX% over purchased TV WiFi. of gig least

This our penetration quarter, we also simplified have reporting.

we each in complexity trending and quarterly manage our with of reporting better quarter. of report aligns business. will the penetration years base expansion how cohorts you saw the X This our eliminates schedule, adjustment on build industry and As and we

On for Slide consecutive revenue, growth X%. growth into offset customer leading quarter drove declines. XX, legacy the sales and can wholesale in and XX% to a revenue business revenue our consolidated grew ARPU more increase of translating grew momentum see Together, product broadband you growth. which than fourth our Consumer revenue how strong fiber and is X%,

grow single-digit For year, revenue in of low plus we consumer and wholesale and range. range the to or expect to balance business the continue our X% end higher the to minus revenue X% land of the in to

drive our fiber to EBITDA management to disciplined cost growth approach continue Our and growth. revenue

second EBITDA we X% the adjusted row, quarter in growth. For a achieved

year-over-year $XXX from revenue that see capital can our fiber million declines. as the XX, team $XXX down We prework down while $XXX inventory you quarter. legacy strategically capital cash and sequentially continues managing On built was continued also up that expected. had million consume Slide as The declined build in we This XXXX and our normalized. in was capital million approximately in approximately to It products, grow successfully of to copper investment QX investment as working our XXXX.

We expect capital reduce roughly to and and QX expect QX. to to continue inventory, flat with we QX be investment

XXXX. to deliver remain the XXXX in For investment on lower track we capital year, than

build peak our that CapEx confident is are behind We us.

customers. Going be connect more increasing fiber will we as of portion forward, customer our new success-based CapEx spend an on acquisition

we will of IRRs free teens, to through phase, significant our in the are will business confident cash well our flow. deliver Once are Importantly, mid investment that our the that fiber confident we unleash build cost high capital. remain above we growing

On in benefits to total A of the bringing debt in the next our discuss North of our on we few $XXX weeks slide, we ago, North securitization. structure review securitized debt and recent securitized capital million Texas fiber closed markets, Texas $X.X billion. our

I'll make the a our securitizations. points few of importance on fiber

provide they approximately only passings. fiber date, our current XXX,XXX fund to fully locations build. clear securitized a our First, which path to fiber XX% is We've fiber of

capital attracted which Second, of should a structure, cost reduce fiber has securitization pool capital into investors long-term time. our our of new over investment-grade

of lower of first August which than points yield average weighted roughly a basis at priced securitization recent XXX in X.X%, our was XXXX. securitization most Our

expect traditional debt. repay million securitized of term include our recent of a long-term of roughly the higher our portion floating we to capital balance and most which rate used we X.X%. Finally, was at proceeds structure our In securitization, of a $XXX to loan,

We profile. to thereby near-term XXXX extended XXXX, our from maturity also the term loan of our proactively maturity improving

our an time. illustrate is refinancing over capital, tool the lowering raising capital new transactions securitization attractive cost for fiber of and These overall

XXXX Finally, Slide updated guidance. our XX outlines

we our while end outperformance reiterating of the first the EBITDA the components. other low key of our are half Given the year, in XXXX guidance, raising

X% which growth at $X.XX be acceleration guidance growth significant our to updated represents the year. of Our versus midpoint, of billion last $X.XX a billion X% would

the of we we'll it will say are Operator, the we solid for our the and I'm momentum I'm Frontier to team in year. open thank America, for to again questions. Gigabit confident the continue delivering I financial of build half quarter. for Before questions, now and line to want that you another up second proud open operational strong work the doing

Instructions] [Operator

is question first with Goldman Schneider Our Jim from Sachs.

increasing. mobile of from in kind build-outs players, industry of be Nick, competitors X including going announcements we've fiber suggest which are seen weeks, that number your a of to recent

more more your finding or does either organically So fiber one that accelerate directionally, or capital make you passing by partners? likely less plans own to or

ago. industry all, mean, of kind I'm the for we that others fiber see were I'm And an This I X thanks pleased to years really we build attractive Jim, as that X question. footprint. first across very the opportunity. is the of something encouraged market spotted up across our or first scale

therefore, been that's behind government thing. course, in a the and again, needs, reinforced is is market the get signaling structure Of infrastructure with us something by very this program, it coming the returns BEAD and can from strongly that fiber given attractive country we

ability The accelerating. necessarily way build, I not -- to materially it not our impacting see really

to said the our I act on with we've As very our harmony calls, much in scaled rest previous build of business.

across needs ability for investment, not customers, entirety investors the to work our ability all returns sure our that to to our provision we're build. So harmony just ability our sell, service, in to make to maximizing our of

Levi from with next question UBS. is Our Batya

provide helpful. impact the you in be potentially did the of that quick more we color the region about the saw quarter, bit adds on strength you growth. And gave little seasonal think to just how disruption? deceleration from a or saw? specific the And terms of you better? should potential cohort to ACP get? would Can the we maybe and any that with due second on color follow-up the half impact boost a broadband typical then also growth the the in -- to against that we Can provide That some ARPU credits in customers Any

Batya. This is Sure, Scott.

your was about little a in embedded points I'll a then broadly and and ARPU. question, more talk make ACP on up that with QX follow few then me Let

is So portion you uncertain. but about the before, number bit our still timing serve ACP. plan, quadrant a asked base, of of developed said small about XXX-meg plans transition We've customer including a market, It's relatively to our we've a X%. this of

We QX. expect disconnects larger to but in ACP we and QX, saw the be impact in some voluntary QX from

be kind expect our Now healthy. of to view to of out it very we QX, broadening

momentum factors primary is We're have seasonally across headwind the like net ACP, I expect up is sales to strong those our year. we fiber quarter you team strongest of all to the tends and we have working just mentioned, hard significantly QX in put record set an be the footprint. QX be expanding beat together, in channels. QX. when our the We adds selling year-over-year to that And we

sequentially be through ACP plan. X% of ARPU, then to year-over-year. X.X% expect on your we're say, But as very end ARPU work range to pick-up QX we XXX-meg X% up ARPU. delivering we've up do was to the healthy our that pivoting was flat roughly to right and the QX question year long-term We Now in as growth I'd the expect X%, in plans particularly the QX in an QX transition given more line in target. we

And the just a remind the we've of build previously, in on drivers have, call, perhaps Yes. strong do said everybody if on we To business. very that. I Scott, can as ARPU X

is a time pricing, we course, of year-over-year. market service over but kind core price up which tends to high product value inflationary of go to is, the first The of the in generally also provide, aligned

speed demand speed and tiers data require ladder, actively device very up customers ability see is sustainably ARPU We indicator as underlying of grow and we and few over and trends faster strong years. so the last as migrating done a and as that's we've speed-price second introduce The speeds to time. our our on new over

And lever have value-added third we services. is then the

levers like really that us, premium a a tech for are portfolio WiFi, bringing And great buy be extenders, that that successful of all when of you all kind it customers very only of we'll gives are has WiFi the can across deliver as support, we've value-added recently, that time, to in-home of the these incredibly X% new things. the channels. been grow things home confident sorts we combine said. and over TV, that market, can degree map you with our all those that things launched And relatively them experience, long whole confidence sell road to those we're and range and whilst So we people got WiFi to services ARPU YouTube we extra those high going to sustainably up in very, we've us a buy X% ingredients end X of

Our New Jonathan is from next question Chaplin Research. with Street

adds, impact up Was ARPU. of at to importantly, a question following on XX% Just HAC gross from is despite, more the close ARPU up XX% an on ACT down well, impact seasonality at growth can an on Batya's growth be HAC, that's And pretty gross from and gift but look I this it's what adds, this quarter? the from last I give you the an the cards industry going away there to from guess, year? to factor, then that was year looking given despite pace us impact And growth particularly phenomenal impact from XX%. despite wouldn't year-over-year, in when

to anything maintain of quarters, you expect of a at last to that the this of sort I that over there context? and you cost us sort onetime sort you here? you to to you the be able put X the acquire from maintain? then Is course you sort of are Can of of leverage in that level level gross And of that you to can know spend to adds some expect quarter? helped Is this be give new

think I not one got those. to Jonathan, question perhaps Scott, all But you're start. you the thanks. I'm of sure sticking don't we

Yes.

unpack me Let those.

-- the on your question So event. first the cyber on

our results. impact that event we before, As any operational material don't believe the we would had That financial noted ARPU. include or on

just reiterate that I'll that X-K. So previous a today point was in

in quarter. Your second of we're to was but cards, breaking gift impact roughly question on schedule, last that out training no longer it similar the

of trends. adds, gift to have going on ago. job recovered cards did we online, were to I'm the The Nick largely cyber broader the quarter. those say I because customers adding installed. will getting your the largely it net getting on the just a event questions impact for question from kind impact a a great everything industry to discontinued big on don't throughout about team back pass of We year

QX. broader So it QX don't in we trends. expect on pass impact material nor the I'll to But a real had any Nick industry in catch-up

mean, of here. gross add our to Yes. fiber the remind feedstock as quarter. building at That fiber net course, trajectory pleased of on I passings course, more And is, of very, very look, X,XXX everybody, performance. rate of the getting bigger. we're we're single just about a building with fiber got kind every means We're day. we've And a that

play take that our a there fundamentals are little But in if now show through beginning I we step bit, numbers. here a to back are think at some

first fiber of penetration our countries because product because which have indeed, product was it's see we in And a just this so up product. is with The future cable world copper-based product wants proves. absolutely as product, time. is that the where But goes Nokia better around the we a trial kind companies, better up proof, up and recent fiber market and just XXX-gig The it's many of legacy its in the great now.

work over that executive any talk network we've insight past as X intense on But X with customer eliminating done of doing is will the I'll perhaps well removing give The previous have buy. me customer work we've service the the fiber last been and years. And shared into haven't calls. the which about -- very have I to on ever you and a is irritations internally, may committee little some network heard or our customer you

we working do from which how what which we've other the how do incredibly we've of different how all this adjusting, plus we committee scale And adjusting, state, how needs little turned entire that XX of different learn in which do are which we relevant do data channel, the channel all at leaders optimizing, sales city, out through so, going how of detail channels. reviewing, town, work of or go and the Every sales are course then intensity where same our experiment level. street, an granular days the we kind optimize, do reviewing to which what's finetune, Well, to the we what with over figuring year, how granular through things optimizing, price, we partners, do with missed, promotions, the hiccups, again. channels, executive

that I as think momentum, in to did in and sales into see And results as our improved just the we're NPS through sales momentum exactly very that beginning going seen delivery you've in had flow the we improved our to that, results. customer confident I'm care same well. organization, our we're results thing see

with question next from Sam Paribas. McHugh Our is BNP

I want self-installs. the to ask about

I homes? can you think describe actually a And is, think great. what the we finally like? how own in secondly, color us what like that One wall? impacting the that's I to trend, just of you think on a launched If my in you There's about color that might should if looks trending how I'm and how house, connect July. you X that Any actually actually process give to that cost then do person on drill the would be them parts. involves in have bit

go because and out spotted. as that's we Yes, as And new self-install install. Yes. building thing primarily is look, because Thanks, us still you've have And our to network. Sam. build for a network, we're we a

But customer, grows, home that on. becomes out set time easy. self-install fiber somebody and so base a as and people process of move really ONT first have them install up an we existing else customers to moves we of when have the and in, then connected an The installed

set talk app and router an away future us to cost becomes reduce over the therefore, implication the our that want you do have wall, opportunity that, rolls, of will go. time customers over socket to on. significantly cost our continue grow the base to into Scott, in truck the as to fees? reduce just installed grow and they And just the up grows They fiber in base. to so But we plug it the connect, for about And as

The end connection. customer range to we've of for portion bigger unlocking higher a Sam. of X areas. the Sure, target that per now, to self-install, said before, $XXX self-install, range at in our connect, should the $XXX with is much reduce but cost the cost base We're

You technician. house, you no drop, a longer no is ONT in and the do to longer send a already have have to the

cost closer with overall, to the us range much potentially So end improvements, the it of low even that time. will end low take those of down the below over range,

from next Our is question with JPMorgan. Petti Sebastiano

Just Is there on dollars? terms in thinking we the on of But half, to meant And mean thinking to the ARPU imply I anything the that see end low about it's slowdown a still flat. consumer the be about follow-up Was comment that on should fiber year-on-year does marginally. raising nice it in guide. a seem quick relatedly -- about does of be it growth? we Is of that how EBITDA, should there? be back a bit then

the to is why there and guidance a long-winded you there's that's just multi-facet being said pace asking maybe about of a bit the light that there with this should to little just in a in is year. maybe EBITDA kind But zooming in higher. little EBITDA it's comment, we the -- for embedding guess, the related expectations the I of kind guide, in of is out some cost sorry, and for particularly SG&A and particularly encouraging conservatism of conservatism to And cost fiber of question connect a obviously, ACP. adds maybe what light connect, Maybe anticipate,

said sequentially. roughly and QX. would there be Sebastiano. serve related price Thanks, year-over-year. I'll lower plans we quadrant flat said that in dollar-wise Sure. would of But with before market take QX, the again That flat mean those. On ARPU, up it's -- some we ACP transition picking it up to to there's

ARPU. expectation our that's on So

roughly step-up that On fiber I'd adjusted EBITDA, business. is have of X% and described flywheel midpoint growth Nick the confidence now last lot of in same we fundamentals that half, year. make first that The has our shows achieved momentum. a which half first is X% the which midpoint the big a the X% we in higher, growth the growth implies underlying The point the that versus second as we the the in

feel that much of the headwind. we then a some about overall, headwinds. those. good some question So about headwinds There second discussed rate. We've slight that higher project most energy We quarter first business can growth have half typically it's a your a lumpy. and business could with ACP strong And but be in are a had half. seasonally final hottest the and costs in there, estimate. We tougher perfect be then to QX, really little wholesale is

second we about overall, momentum next which heading into good the should really year. into nicely carry us half feel the So

next question with Williams from is Greg Our Cowen. TD

off it great. help would Maybe Scott, cadence or think last you you're just parts your about year you doing will too, versus last the obviously it some dovetailing of third seasonal think energy much similar us us costs so cost costs EBITDA? savings be Should How incur? be because about can moving a quarter help there, comment, sort

revenue. is your Second on commercial just question

and what tell high You're there now solid to or momentum guiding Or plus momentum to achieve doing Were a of? strong benefits you're about onetime any us end and X%. the there just minus speak performance.

are which said, typically and QX, EBITDA of a I On growth-related primarily SG&A expect customer there dollars QX. really in for energy, about well second Greg. obviously up that specific and them so QX, just are half rate. the is the also cost We be want we overall, to QX commissions heavier X%, but some growth not to I seasonal grow SG&A. in typically higher still strongest people quarterly through QX. giving and as the remind guidance, caution then Sure, healthy to mean, is seasonally we're marketing growth But seasonality expect quarter the year-over-year. Yes. but But we in flow

year. so we deal that's the on. into ongoing strong a converting and said, of and this it performance winning between last That Yes. And can kind wholesale, on in deal when revenue said of previous business or on I've I the lumpy a quarter and to and calls, first the industry outperformed mean, win time as big significantly can a be you year, half revenue this

and X% in high really year. first business X% by underlying growth Our I'm and our better this wholesale declines. the strength which encouraged single-digit year, revenues fiber of of of wholesale grew first the business half industry's the in through the than significantly And grew half the

growth It's flywheel this Scott copper. I offset part just predictable on to legacy and built declines expect So the fiber and continue. continue in I our see of very described we to that the

XXXX. to start of off in strong higher X% wholesale towards expect in to range over previously come I expected X% minus the to us end we're or this plus a year. our business and growth So

Rollins next Michael is Our Citi. from with question

homes back time, the Just the been and something seeing form been and for good it that curious may kind of then a that you way of there way the And over to and at and could sort copper the quick you this businesses and expansion that follow-up. in of when if at second, the expansion. of monetization consumers consider and own look business of non-core wait strategic the markets of success want which category? on having in for to item, X, way front, the the event the quantum both anything influencing that legacy review you which given you goes up what just just in some you're that you're I'm Wave trend is kind the in the strategic control in way that number core core some is market the may Has consider flattening line helping revenue in be you that's returns could build may

this Michael, is Scott. Sure.

the me question Nick. it Let copper pass I'll take to then

on particular, broadly to network run and overall particularly have maintain risen, copper question copper we've cost years, in few environment in side. a and on the been the ARPU, our inflationary last the Your in

on to have business those our lives portion a pass they other that in seeing understand their We their because as well. of to personal of customers, or and they're parts that

of and Point ARPU. on ARPU. the that's on our two, So number copper And selling products, your some lifting on lowest speed, ARPU that consumer requirements as point strategy... overall going usage specifically we've what's price copper question increase, continued one. Internet to lowest Yes. and effect That's had a actually number has data speed with stopped have copper

legacy just see flat business revenue was that's for revenue, revenues just where copper about the has -- copper fall? asking where business normally X I you Scott, been quarters last the Sorry, business

Yes.

I think it's described. the just same dynamic that I

had to balancing of progress objectives. side. both still pricing cost and on some had actions consumer a it decline, offset business those market, So flat. our the We're been We've side roughly is we've but help a managing deactivations increases. copper have different managing think good declining kind don't the I yet. flat We're

the of is goes just in And review. with update, the objective in really, We set our half we've build talked out strategic that million sight. -- Thanks, which our fiber question clearly now the Yes. investor on total, your hand-in-hand XX I to Scott. second review. mean strategic passings and about,

remind how deliver really to phase natural everybody that. just time we us a all growth to could for is of look and now consider for the at options next that So the

continuing includes working the said sorts, strategic mergers, our team things. all operations divestitures, as I've optimization ventures, And and structures, and intensively are financing the and board those very previously, partnerships that of management of combinations on joint of all business

course, looking with NPS to increasing those generally growing, the you from thought readily peak market good, of America, in us customer IRRs of is fiber growing, the have of which access, build, lot that converging be to brings also that that provider growing, absolutely kind of means revenue with the gone good, course, strategic passed that fact has market, fact we've fact broadband, all becoming that need the the of need CapEx strategic more industry our course, all best looking hands-down in of a optionality, scarcest is convergent penetration a worse wireless in EBITDA And And the largest coupled Now pure-play numbers assets is of we optionality. industry things available. And convergent. And through. the fiber as which a market. for

see everybody the future, perhaps -- I interest rates would the even -- with well. probably that IRRs tracking build, down so predict in mean our probably we we think I of see fact more as improving -- couple improving efficiency the

the of a question. thinking there's the lot things answer optionality, when to comes into we're there, of about your all which think through mix lot So we of a

is America. question Shipra from next Bank of with Our Pandey

you your timing you -- if question, update so I you're just about strategic of and answered Day. more of kind to the this prior the Day mean review could how of so Analyst and the on process. but sort Analyst structure in And Yes. any visibility provide thinking about the thinking on the

are we about former style well Frontier the about, partnership thinking of think before, best capital as review sources on a saw doing there? the and Bloomberg so talks more recently you might venture joint may uses that you've capital to that report And any venture. potential mentioned joint you come from how I and get strategic that And a

how your Frontier, of Access So are economic out is structure about whether on it's and And region build? in of thinking and are Open how right you phase kind planning the the -- or for you for where team region everything?

Yes.

just But get share of update said, really which with strategic we think piece that is review, we market. really intense before to back with our with work. those As I I some and conclusions want very firm hand-in-hand the goes come investor the ongoing,

of ventures, speculation, I comment industry profile shareholder fiber increased the have But specifically, and mean, the as we further seen think course. in announced from joint joint view on underscore press think on this of return interest attractive an the won't I is the U.S. we building extremely the that generically, recently, ventures value validation long-term just I fiber. investment. And

market. the capital I a clear in you all the of very asset know recent Scott, the and decisions. positive fiber And as fiber convergence on our competitors' scarcest also in difficult any is have I is don't comments just It's pure-play if and allocation. most driving largest provider to this said, Frontier is that U.S., thing. So is replicate a converging

thanks question. Sure. the for Shipra,

Let how context. capital then and me about our some that into recent we put give transactions color the structure on you think

We to to our liquidity of capital our of to fund our maturities appropriate have reduce flexibility by target to leverage maintain and back cost build following we X build. that main our increase net over want objectives. then We eventually the maintaining and getting want extending mid-Xs time,

X all we from think And I that did in QX, accomplished those. the of transactions we

our to XXXX. reduced We securitization debt constant. the And maturity cost Our portion keeping from leverage our then a the of term proceeds to North Texas of capital. thus loan down pay securitization relatively used first-lien extended we of

objectives. future, look do long-term we'll those to So in similar the meet transactions that

is question Deo next Del from Nick MoffettNathanson. Our with

on on one video. got I've SG&A, one

second I'm quarter degree trying row. a which So product adjusted that's a factors. versus understand SG&A to expense SAC higher in the was to just the of other elevated for

turn to video can plug? Just getting on then it at you great. front with pull smaller, be and sense does any would that smaller And the point make color what

in SG&A last able total growth-related in that the versus to has on but first a cost Sure. us. is Nick, first had deep SG&A our important that been had we've -- most In back the into dive half step Scott. on discipline of flat the base. this of despite first the we SG&A, Cost second, cost much support absorbing to half and And overall the growth at for increase discipline cost year. higher take our very year, in question I'll base been keep SG&A. commissions significant in look we let what me remains a and marketing

XXX of offset which primarily by than basis to improve order In done margins, cost we've base, to that fixed and our we've actually XXX network growth-related cost points, serve, taken video our out is SG&A more cost manage commissions. by of despite margins content all than in and marketing and SG&A, improve therefore, costs our points like that SG&A. extra to Almost I that more basis described,

in industry-first instead YouTube a receive us, there made the industry-leading linear part new on had helped giving which not But stop some not pain TV, the we over-the-top Instead, video, decision more get for and home the a video and whole for excellent we're video options on base we're we're the TV market focus We That's point, enough it's On WiFi YouTube strategic going to that providers. often bill point recall with single something the with them access an to over-the-top is can customers to from where years typically customers, leading has they selling support. connectivity. for where our been over-the-top TV question, and yet. than growing you're At with to customers. right, did a small X you'll us customers. will then partnership bundle partnerships great connectivity traction focused your of provider our ago second

is question Flannery from Morgan Stanley. Next Simon with

On where low-end can corporate us a of macro. selling above the of then is well little Is so there? little the you churn. seeing over any fiber in intake bit of of sense lot go given up the There's you're tick bit a the give gig ARPU, a on a in a of And give this you're -- it what can comments that terms $XX, time? color on plus,

consumer? ACP, today. employment we about the but talked bit softness. you end talked anything obviously the Are You number seeing saw about has weak a low at of a Cable little

Yes. Thanks, seeing I here. at perhaps any not think end, is low Nick Simon, the the start We're no. I'll answer softening.

different price so in we've different And and dynamic really been points on. calls, cities, active pulsing different with by very what locations fact, a to as in price-speed really promotions we've In been we out different segments, found. the previous encouraged opportunity of different we've in markets, on sort and understand said learning experimenting in as in

been been on most incredibly which promo In new fact, interesting volumes up no customer taken. to our And segment negative actively the gig-plus with moved impact has extent we've those they've is speeds, our promos educating all. successful at that a have pricing which on the thing at very

us. side? that's So well fiber I a of to anything at worked and end Scott, sort softening experiment thing. ARPU this can't very with economically at products, the a good low sort talk I on for has cable all But legacy copper been a very mean indicate product. the It's different doesn't any of very,

bifurcated. really we've ARPU, intake Simon, Yes,

higher We we taking be of have overall expecting our below plans meg. QX did That's QX the and of in mix customers more XX% great to to ARPU. our additive lower the on gig-plus. have of typically than now what call the That's transition end, a XXX ARPU. some ACP We

that and to our the growing bifurcation of range of But be target transition complete by nicely, again kind expect the X% us to So period. thus QX, now we a that be sequential putting most this year. then X% by it's transition in end on of to for ARPU

is next James. with Louthan from question Frank Raymond Our

I convergence. of asked that scarce do on does you the clearly, before, mobile think what resource. I say, But At this a type been but you've point fiber us give some need and mean, most the is how thoughts of fixed appropriate those that fewer it's in know product? you some inbound to maybe give Maybe tangible in you at improvements? And can then impact group calls care terms point, kind some us your Friday truck customer quantify in? there? of rolls calls factor on or or of efforts you've the of AM that amount done benefits from of declines any

countries And same I've I that The Scott, of the we've can that. previously, said I impacts as data take a care. a my mature. think It's on the data you've convergence accelerate is market. convergence other you U.S. definitely develop that to. the access and cable have really where companies. about adequately thanks. about and start we talk experience all if and clear take happening got And sure is the observations. I'll Look, mean, Europe in one, and I'm step Frank, in Yes. convergence the improved seen back perhaps mean few by then led and I

market down First anywhere of all, stops. it in the I or don't convergence world think starts, once slows there's where a

up And axes. going tend the that accept and through catch asymmetry X X market product So of driven one other cycles. it -- of start in convergence, to then to rate always players And by share there's or of or asymmetry or everybody join convergence share, and they're of they they asymmetry behind as availability those technology to price. or to lose accelerate tends has

the dynamic I think, in that's very, taking So very that the much root. U.S., we're seeing

not. it it a down. think it countries that and started, evidence the whether I stop, can on creates reports is speed it it there And to value the doesn't that Of between on nonetheless, read that pretty But I varies is clear what once at well about does economic as as can. or slow And answer course around you of doesn't the and course, that. go, the world question

mean that for does what Now Frontier?

network. question certainly is, lot a our wireless Vishal ofcourse, network, of we fiber our to a Bloodworth, in built Head in if he built first also Franca a the have ex-Vodafone, And Chief Horobin, I've is build Well, And at run -- a of all jobs wireless again, Strategy, experience of who years ability Marketing business. ran said I of wireless Wireless. we at our as we previously, AT&T's this Officer, operational their XX Head got John should on Vodafone. of we launch We've seller and of offer Wholesale prework Verizon spent actually, offer. deep do had to lot have Wireless. we've been John kind because able wireless Dixit, expertise our Chairman, that, the of here. launch to. and Stratton, Network Verizon

will We is mobile our and remains surpassed at very our moment very markets us So low. we the XX% the this yet. what understand what do is, in And it is very, the on prepared. now? the quarter, economics. We should question understand we well our clearly well. be by need fiber we're And is do offer I've dynamics data led this. to said data very we of penetration not churn We target kind of the base The always telling

the be building not remains of prepared, sort data product to our is should of that all be that if Scott? stuff. selling capital. and use the continues of current distraction feel doing our web-based goal We're we the to currently indicates the we the we feel new channel, by of that led will launches fiber our reeducating And that dynamic use markets our on be disciplined and cellular, this reconfiguring best capital without something for be

Frank. Sure,

Let you portion service savings about few service improvements. of million A cost our to of $XXX point a customer healthy numbers. by customer I'd driven me improvement. the talk has total been

able now margins basis improvements, up X to been this calls Our over to points through are XX% XXX down drive And of XX% quarter, are we've up our years, XX%. were they the customer those about last digital. interactions

of part and it's big a done overall So we're not yet. expansion, our margin

Our is next with Supino question from Peter Research. Wolfe

the penetration the will you disclosure. topic narrowed of to return vintage I ask to

and You aligns a peer your companies And how have amount remarks mentioned appreciate points. you more with we Frontier new been of business. But allocating companies, in those report capital. you expansion peer than the prepared manage that disclosure is the huge unlike differently

the in And statements the data of financial us valued many for particular, on of marginal have absence your because capital. disclosure vintage of in really returns clear evaluating

why And so what about us us capital if you'd in made to that want think and changed and you help at going could this return light, forward? decision I time how wondered understand marginal on the you

this is Peter, Sure. Scott.

years when because to enhanced XXXX, give very fiber we we level building in hadn't But at we started X has built too than just So those this reporting on passings important is added our XXXX, thought for fifth granular in become quarterly it X now calendar We've and complex. the cohorts visibility cohort year of build. million before. was of a each fiber more

to right the time in how manage expansion we it's it reporting the and our the to and match simplify So separate base business. better

all XXXX And second earnings with for our quarter we'll us. call. that, joining Thank conclude you