FTRCQ Frontier Communications Corporation Class B

EPIX and Frontier Communications Renew Distribution Agreement

Premium entertainment network EPIX today announced that it has renewed its distribution agreement with Frontier Communications Corporation (NASDAQ: FTR), a leader in providing communications services to urban, suburban, and rural communities in 29 states. Terms of the agreement were not disclosed.

“Frontier has been a strong partner over the past few years and has introduced EPIX to new and wider audiences across the country,” said Sandy Ashendorf, EVP, Content Distribution at EPIX. “We are happy to continue working with Frontier and deliver on our promise to meet consumers wherever they are with hit movies and high quality original shows they want to watch.”

“Frontier is committed to providing our customers with the very best in service and technology, and EPIX has been an important part of our offerings,” said Steve Ward, Frontier Communications Senior Vice President, Video Technology and Content. “EPIX adds value to our customers’ viewing experience with thousands of titles and a wide range of content. We are pleased to continue to offer Frontier’s customers EPIX’s content.”

A leader in multiplatform availability, EPIX will provide Frontier customers access to its breadth of premium content, including its critically acclaimed original series Berlin Station, Golden Globe nominated Graves and coming 2017 Get Shorty; groundbreaking original documentary programming such as America Divided; thousands of movies on demand, including big franchises The Hunger Games, James Bond and Star Trek; as well as music and comedy events featuring marquee talent, like Katy Perry, Louis CK, Wanda Sykes and more.

EPIX, EPIX 2, EPIX Hits and EPIX Drive-In will be available to Frontier customers, in packages and on their own. Authenticated subscribers will also be able to access more than 2,000 titles on EPIX.com and via the EPIX App on hundreds of devices.

Metro-Goldwyn-Mayer (“MGM”) announced earlier this month that it will acquire full ownership of EPIX, having reached an agreement to acquire the interests held by joint venture partners Viacom, Paramount and Lionsgate. The transaction is subject to regulatory approval and is anticipated to close this month.

About EPIX

EPIX is a premium entertainment network delivering the latest movie releases and biggest classic film franchises from MGM, Lionsgate and Paramount Pictures, plus original programming including series, documentaries, and comedy and music specials – all available on TV, on demand, online and across devices. Launched in October 2009, EPIX became profitable in its first year of existence and has been recognized by SNL Kagan as the fastest growing premium network for the last five years. A pioneer in the development and proliferation of "TV Everywhere," EPIX was the first premium network to provide multi-platform access to its content online at EPIX.com and to launch on Xbox, PlayStation®, Android phones and tablets, and Roku® players. EPIX is also available across Apple TV, iPhone and iPad, TiVo, Chromecast, Android TV and more, delivering more movies than any other network with thousands of titles available for streaming. The premium network is offered nationwide through cable, satellite, telco and digital distributors. For more information about EPIX, go to www.EPIX.com Follow EPIX on Twitter @EpixHd (http://www.twitter.com/EpixHD) and on Facebook (http://www.facebook/com/EPIX), You Tube (http://youtube.com/EPIX), Instagram (http://instagram.com/EPIX) and Snapchat @EPIXTV.

About Frontier Communications

Frontier Communications Corporation (NASDAQ: FTR) is a leader in providing communications services to urban, suburban, and rural communities in 29 states. Frontier offers a variety of services to residential customers over its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and Frontier Secure® digital protection solutions. Business Edge™ offers communications solutions to small, medium, and enterprise businesses. More information about Frontier is available at www.frontier.com.

EN
17/04/2017

Underlying

Reports on Frontier Communications Corporation Class B

Vikash Harlalka
  • Vikash Harlalka

FYBR Quick Hit: ABS debt priced

Frontier announced pricing for its latest ABS debt this afternoon, raising $750MM. The offering consists of $530MM Class A-2 notes at 6.2%, $73MM Class B notes at 7.0%, and $147MM Class C notes at 11.2%. The average cost of debt is 7.4%, which is in-line with our expectation, and ~140bps lower than their last ABS debt issuance. These new tranches of debt have an anticipated repayment period of 7 years (vs. 5 years on the last issuance).

Jonathan Chaplin
  • Jonathan Chaplin

FYBR: Cash flow in steady state

Frontier management has set targets for EBITDA of $4BN and operating FCF of $3BN on a footprint with 10MM fiber locations, in steady state. We built a simple model to vet this outcome. Our model arrives at slightly lower EBITDA and UFCF; however, modest cost cuts get us to the target, and cost cuts are likely. In addition to vetting steady-state targets, the model illuminates how value is created in the fiber business. We built it so that you can easily change assumptions and see the impact on v...

Jonathan Chaplin
  • Jonathan Chaplin

ACP Part V: FCC releases survey results

The FCC released a survey that included more than 5,000 ACP households today. The FCC repeated the mistake of prior surveys by asking whether households were new to broadband with ACP as opposed to subscribers that are new to broadband with one of the subsidy programs that followed the pandemic (stimulus checks; EBB; ACP). They also asked the important question, which is “what will you do when ACP ends”. Our quick analysis here focuses mostly on the social costs of ACP going away. We will ...

Jonathan Chaplin
  • Jonathan Chaplin

FYBR: updating capex and funding through 2026

The Company’s new Capex disclosure provides a clear map for cash capex for the fiber project for the remainder of the 10MM location plan, which will take them into 2026. Stronger confidence in the capex trajectory for the next three years lends confidence to the FCF trajectory and funding requirements (we have eliminated a variable). This should make it easier for investors on the sidelines to underwrite the investment case.

Jonathan Chaplin
  • Jonathan Chaplin

Frontier Model Update

This note focuses on changes to the model following 4Q23 results. Earlier today, we published a review of results and additional thoughts following the earnings call. Our net adds, revenue and EBITDA are slightly higher. Capex and FCF burn are also higher. Our long-term thesis remains unchanged. Price target is $54.

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