Shares of Frontier Communications Corp. stock sank more than 7 percent by late Monday after the company posted its first-quarter results.
Frontier reported first-quarter earnings of $26.8 million, or 3 cents a share, down 50 percent from $54.7 million, or 5 cents a share, in the first quarter 2011.
Costs attributed to the nine-state final phase of Frontier’s integration of former Verizon Communications Inc. landline business in 14 states had a $35.1 million, or 2 cents a share, impact on the company’s first-quarter results.
Analysts were expecting a profit of 6 cents a share.
Revenues dropped 5 percent from $1.35 billion to $1.27 billion, topping Street expectations of $1.26 billion.
“Frontier’s successful systems conversion of the remaining nine states in March has enabled us to turn the page from acquisition integration to a focus on revenue growth, broadband penetration, and operational excellence,” Chairman and CEO Maggie Wilderotter said in a statement.
Wilderotter previously predicted gains in broadband and video business in the former Verizon territories would offset expected drops in the declining landline business. The drop in revenues in the first quarter reflected losses in residential and business access lines and a net drop in video customers, the company said.
In the first quarter, Frontier gained 9,200 satellite TV customers but saw a net decrease of 4,800 customers signed on to the FiOS fiber-optic video service it acquired from Verizon. It reported a net gain of 11,700 broadband customers.
Frontier shares (NasdaqGS: FTR) on Monday were trading at $3.60, down 29 cents.
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