Frontier Communications Reports 3% Revenue Increase and Net Loss in Q1 2025

Frontier Communications Parent, Inc. reported a revenue increase of 3% for the first quarter of 2025, totaling $1.511 billion compared to $1.462 billion in the same period last year. The company experienced a net loss of $64 million, a decline from a net income of $1 million in the prior year. This shift in profitability is attributed to increased depreciation expenses related to ongoing investments in the fiber network, despite a $49 million overall revenue growth driven by fiber data and internet services.

The company’s fiber broadband customer base saw significant growth, with approximately 107,000 net additions in the first quarter of 2025, compared to 85,000 in the same period of 2024. As of March 31, 2025, Frontier had approximately 3.2 million broadband subscribers and had passed over 8 million locations with fiber, reflecting a strategic focus on expanding its fiber network. The average monthly revenue per customer for fiber broadband increased by 5% to $68.21, driven by customer shifts to higher broadband speeds and inflation-related price increases.

Frontier's operational metrics indicate a continued transition from copper to fiber services, with a reduction in copper broadband customers. The company lost approximately 41,000 consumer copper broadband customers in the first quarter of 2025, an improvement from a loss of 51,000 in the same quarter of 2024. The average monthly churn rate for consumer fiber broadband improved slightly to 1.20%, down from 1.24% year-over-year, indicating better customer retention.

In terms of strategic developments, Frontier entered into a merger agreement with Verizon Communications on September 4, 2024, under which Verizon will acquire Frontier for $38.50 per share, subject to regulatory approvals. The merger is expected to close by the first quarter of 2026. The company has also been actively pursuing funding opportunities under federal programs aimed at expanding broadband access, including the Rural Digital Opportunity Fund, which could provide significant financial support for its ongoing fiber expansion initiatives.

Looking ahead, Frontier anticipates that its focus on fiber deployment and operational efficiency will continue to drive revenue growth, despite challenges such as inflationary pressures and supply chain disruptions. The company remains committed to enhancing its fiber network and improving customer experience as it navigates the competitive landscape of the telecommunications industry.