Shares of Frontier Communications Corp. dipped slightly Tuesday after the company reported its first-quarter results, including an 80 percent jump in profit.
Frontier stock (NasdaqGS: FTR) was trading Tuesday afternoon at $4.05 a share, down nearly 1 percent from Monday’s close of $4.09.
Frontier reported net income of $48.1 million, or 5 cents a share, for the quarter, compared with $26.8 million, or 3 cents a share, in the first quarter 2012.
Analysts polled by Thomson Reuters had projected per-share earnings of 6 cents on revenue of $1.22 billion.
Frontier’s increased profit came despite a decline in revenues. Frontier logged revenues of $1.21 billion for the quarter, down from $1.23 billion a year ago.
Total operating expenses went from $996.8 million during the first quarter 2012 to $954.6 million. Operating income for the recent quarter was $250.8 million, compared with $235.7 million a year ago.
CEO Maggie Wilderotter said the first quarter represented the largest rate of broadband net customer additions since the company’s acquisition of Verizon Communication Inc.’s landline assets in 2010.
Frontier had more than 28,000 broadband net customer additions during the quarter. The company had fewer than 24,000 additions during all of 2012.
“We are maintaining this strong broadband and customer retention momentum into this second quarter through strong sales, continued investments in our network and exceptional customer service,” Wilderotter said. “As a result of these efforts, we expect revenue decline improvements in quarter two. Finally, we are on track to achieve our goal of reduced net operating expenses of $100 million for 2013.”
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