Morningstar - Frontier Communications Corporation Class B (FTRCQ) Frontier Continues to Struggle with Prolonged Customer Losses That Hurt Top Line; Shares Overvalued

Report

Morningstar

Alex Zhao

EUR 101.80 For Business Accounts Only

Frontier Continues to Struggle with Prolonged Customer Losses That Hurt Top Line; Shares Overvalued

Frontier posted second-quarter results that track closely with our expectations. Total revenue declined 12% year over year, versus a 13% decline projected in our model. The firm continues to lose broadband Internet and video customers at a pace similar to last quarter. Prolonged customer losses and elevated customer churn indicate to us that there is no clear sign of recovery yet. We continue to believe the firm will lose video and Internet customers every quarter through 2018, albeit at a moder...

02/08/2017 16 EN

Underlying

Frontier Communications Corporation Class B

Frontier Communications is a holding company. Through its subsidiaries, the company is a provider of communications services. The company conducts business with both consumer and commercial customers. For consumer customers, the company provides broadband, video, voice and other services and products. The company delivers these services over a combination of fiber and copper-based networks. The company's commercial customers consist of: small, medium and larger enterprise customers, whereby the company provides services including broadband service, Ethernet service, circuit-based services, SD-WAN, and managed Wi-Fi; and wholesale customers, which buy both voice and data services to supplement their own network infrastructure.

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US35906A3068 Pink OTC Markets United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Alex Zhao

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Frontier Continues to Struggle with Prolonged Customer Losses That Hurt Top Line; Shares Overvalued

FYBR Quick Hit: ABS debt priced

FYBR: Cash flow in steady state

ACP Part V: FCC releases survey results

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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