NEW YORK, August 10, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Frontier Communications Corporation (NASDAQ: FTR). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=FTR

Highlights from our FTR Report include: 


        
        - Top Line Performance - In a press release dated August 3, 2015, Frontier
          Communications Corporation reported Q2 2015 revenue of $1,368 million, up compared to
          $1,147 million reported in the same quarter prior year, but a decrease from $1,371
          million reported in the first quarter of 2015. Connecticut operations revenue amounted
          to $264 million, which was relatively flat to those reported in Q1 2015. Customer
          revenue was $1,236 million, representing a sequential growth of 0.3%, reflecting
          improved trends in the legacy Frontier business, and a stable performance in
          Connecticut.



        
        - Movement in Subscriber Base Across Segments - The release highlighted that at June
          30, 2015, the Company had 3.17 million residential customers. Q2 2015 saw a net loss
          of 0.6% in residential customers, compared to a net loss of 0.4% in the first quarter
          of 2015. The average monthly residential revenue per customer of $64.43 however
          increased 0.5% sequentially. Moreover, the Company had 299,000 business customers at
          June 30, 2015, representing a net loss of 0.6% of business customers, versus net loss
          of 1.2% in Q1 2015. The average monthly business revenue per customer was $689.21, up
          1.6% sequentially. Further, Q2 2015 saw a continued positive broadband momentum with
          29,200 net broadband additions compared to 17,100 net broadband customers added in Q1
          2015, thereby representing the tenth consecutive quarter of broadband share gains.



        
        - Improved Profitability - Operating income came in at $193 million while operating
          income margin stood at 14.1%. This compares to operating income of $163 million and
          operating income margin of 11.9% in Q1 2015. Net loss narrowed to $28 million or $0.03
          per share, compared to a net loss of $51 million or $0.05 per share, in Q1 2015. The
          non-GAAP adjusted net income for the second quarter of 2015 was $27 million, or $0.03
          per share, as compared to $21 million, or $0.02 per share, in the first quarter of
          2015.



        
        - Cash Flows - Operating cash flow came in at $528 million, resulting in an
          operating cash flow margin of 38.6%, vis-a-vis operating cash flow of $504 million and
          an operating cash flow margin of 36.7% reported in Q1 2015. Free cash flow was $200
          million versus $197 million reported in Q1 2015. The Company continued its attractive
          and sustainable dividend payout ratio of 53% for Q2 2015 (54% for Q1 2015).



        
        - Guidance For Full Year 2015 -The Company is expecting its free cash flow in the
          range of $825 million to $865 million while capital expenditures for Frontier business
          operations are estimated to be between $700 million to $750 million. The Company
          expects that absent any further legislative changes in 2015, 2015 cash taxes will be
          $95 million to $110 million.

To find out how this influences our rating on Frontier Communications Corporation, read the full report in its entirety here: http://www.aciassociation.com/?c=FTR

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