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Frontier Communications Parent (FYBR)

Participants
Spencer Kurn Head, Investor Relations
John Stratton Executive Chairman
Nick Jeffery President & Chief Executive Officer
Scott Beasley Chief Financial Officer
Phil Cusick JPMorgan
Jonathan Chaplin New Street Research
Brett Feldman Goldman Sachs
Greg Williams Cowen
Frank Louthan Raymond James
Simon Flannery Morgan Stanley
Nick Deo MoffettNathans
Call transcript
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Operator

Hello everyone and welcome to the Frontier Communications Q4 2021 Earnings Conference Call. My name is Bethany and I'll be your operator for today's call. [Operator Instructions] I will now hand the call over to Spence Kurn, Head of Investor Relations. Spencer, over to you.

Spencer Kurn

Good morning and welcome to Frontier Communications fourth quarter 2021 earnings call. President Frontier's call Investor Executive Financial today the Nick Kurn, me and Chairman Officer. Spencer Officer, Board, the Executive on is Jeffery, is Head Beasley, Relations of joining of and This Scott Chief Chief and John Stratton, Webcast website. Today's the followed available be of section can the webcast Events presentation is our and within in & Investor Relations

statements and call slide materially refer which contains results forward-looking disclaimer you may Harbor conference this to actual two, involve uncertainties remind me from and that Let Safe you cause today. risks that that include our those may expressed differ to

With this during I'll over call John. reconciled addition, financial our turn measures refer are to call, In schedule. to in certain release, non-GAAP that, we will press earnings the and defined presentation, which trending and

John Stratton

joining and morning everyone Good you thank discussion. today's for

win Our key value. the opportunity business to in create execute markets and well-positioned to shareholder on be continue to unique continues significant to we

a assets our revenue and this We have XX customers EBITDA a of adjusted generated billion a of infrastructure, the $X.X businesses. In both competitive are commercial broadband months, driving strong base, fiber margin. and XX% we've last $X.X performance foundation and strong positioning. And X.X and EBITDA, significant million represents which adjusted of across billion customer consumer

products the before, investing is we're rapidly. in has said XX last $X.X fiber our and EBITDA the our fiber our months fiber we've generated billion As future of to of Frontier. EBITDA been grow by

our within mile over towers XXX,XXX approximately one fiber feet businesses fiber. network our have with and of We XXX of XX,XXX

the in-footprints back significant end on We simple, review grow telecom out our accelerated expect build XXXX, we five on building and to listed looking a plan we continue to XXXX. to million we slide and attractive convert these of in Onto network, opportunities. May capital powerful made progress As our with key the when new of across at our at Frontier. we subject around including purpose, a It our XX with from operational to April recruited on announced March began talented and locations efficiency, matter Directors the high August, reach expertise NASDAQ America Board by of areas Nick Jeffery gigabit emerged levels transformation in joined fiber development, bankruptcy brand and build transformation, but Day refocused company and Investor Exchange and investment, strategy. digital we We Xth. of

of team quarter our and records new that on was in most set first our footprint our full consistently customer since Frontier we've third The fiber growing team. has quarter broadband new the And at for been executive place, base.

the just which of our that addition, second we we is data The of customers in fiber us are could our net after our several quarter customer grew throughout an a overtook will reaching quarter our broadband broadband base. demand large point our for of We adds, and our our key launched second free fiber in customer will step demonstrated transformation. on we faster quarter EBITDA cash ultimately core executed broadband growth. across point XXXX. the we've then footprint be growth. provide extremely There immediately satisfy revenue, success best to speeds Almost new broadband net yesterday, what total these driver very build fiber our management and to critical growth. believe suite began growth, And team speeds. discussed services, our XXXX, form. customers' losses, In our In the Rapidly of broadband achieving that customer as we And the first we a of network which our compelling gigabit the the of inflection offer it's per absolute well customer is broadband entire reached the value-added fiber pace service positions where with of two ads, of broadband key expanding indicators process. inflection we fourth businesses excess critical our points flow accelerate drive broadband in to the broadband the the of accelerating and XXXX, to copper and third copper broadband pace fiber growing

time our and We're across centric the speed the cost cable. year-over-year is inflection to extending Fiber's clear across revenue pace broadband fiber these this drive growth In speed average today since estimated our faster rising broadband secular and and path cable more We've face targeted be And and pass legislation demand funding been to next stimulus our our footprint, to XXXX, with in gigabit XX% should XXXX. within passed points building times And and to roughly gigabytes as that purpose these the be to megabits than remain on in customer levels gigabit to The infrastructure. will XX% will level latency we is tier, speed superior of that leadership to faster one fiber expect our tailwind XXXX trends, on has is three and government data capital commitment with pools to speeds, an And drive increase capitalize high reaffirm growing active the broadband clearly strategy. is both best related six between vastly of investments. the meet headwinds I'd total beyond. and XXX for already XX demand directed infrastructure aligned XX% positioned increases of fiber on uniquely speeds, This connectivity funds seeing growth as tiers. at year, a government locations bill of we real our EBITDA we And with to a in programs backbone behind XX America. company still we're in for from few We in to expected commitment in speed our existing times of our are and nation's data this than ESG that January long-term accelerating legacy over presenting and government at alone. government product critical points increasing lower while that advantage We're to of fiber, private will aligns service future sequential inflection XXX our cost network. usage demand. years. XXXX. performance download well uneconomic tier pre-pandemic to consumed the EBITDA remain broadband of broadband X.X the soon released. metrics. active like upload financial XX% terabytes products, to encouraged low capital our with building triple will that by ESG, drive encouraged drive We importantly, build gigabits believe the this Demand is our by We an five expect

energy technologies is our and competing and on in of connect and invest areas investing also a in the We industry. which that lead underserved and products less workplace inclusive a work. employees divide. Fiber our technology our bridge continue passive committed opportunity communities, to to the people in safe, in footprint, creating our helping like to committed to can uses responsibility We stewards as cable. than digital sustainability that where We're in to healthy communities rural environment, the We're recognize our live the thrive.

on path significantly. upgrade reduce modeling gas greenhouse we'll As And network committed fiber, our standards we to the lastly, copper a to our highest be governance. to we're footprint of

separate We and skills and have Board and with diverse a CEO Chairman backgrounds with roles. relevant experiences

accelerate engage to our products How launching penetration market over programs. on is built and levers to core journey. we and of strategy. our be meet programs ethics our and providing by we XXXX. at compliance be progress to around philosophy customers comprehensive million four look continue growing critical our in value deployment we'll We to with demands compensation commitments ESG more to performance for have our able on we the best strategy executive implemented compensation our have We've XX reach our details make is of footprint, We increase footprint ESG our to success. end footprint. with new a to creation. fiber our fiber fiber in pay Expanding our key of We forward also customer built the as into homes Along plan

of simplify how to we to the Our company. the operations experience quarter. with these an is deliver opportunities Nick against the perform third continue our review across of to over how operate focus exceptional all interactions customers. our and And initiatives throughout goal we identify to lastly, I'll turn Nick? to call parts in all now we

Nick Jeffery

Thanks John.

want I many started, acknowledge said execution get story. have to Frontier an I the investors and analysts that is Before

executed team XXX,XXX that the locations actions go XX% a We at of our our So Customer QX, on to locations, We new deeper last our ago increase this from quarter. with In reaching XXXX. strategic key a total year well we're period million Broadband into end fold built call, priorities. XX,XXX the a record which compared increase strong previous to fiber five nearly going Net and X is fiber contributed over a against our our Edition, fiber record added of results. same are the extremely target of record a

losses, Our fiber than net Broadband were this resulting Net quarter positive in our couple ads greater total Ads.

ever positive copper. fiber low launched first Fiber And and We per wide the and churn we in our possible more promoter earned further yesterday, electrical this the record NTS time market. years. time and first our products X had offering only the in high service, for the across first network Net five gigabit which our record second than For scores Fiber importantly, broadband and both just leadership quarter and extends best

XX. Fiber to initiative, Deployment. strategic first Moving Slide On our

To and times into locations Our year passed put XXXX number passed fiber six continues of in the locations to this quarter. deployment XXXX. on record fiber in built XXX,XXX the we that perspective, we we increase

our our and accelerate within demonstrated has team targets. ability to cost to our so Our do established build fiber

provider provide TV, to to the open nearly with we and capabilities a customer the us increase customers to And strategy. enable and We a like navigating untapped us broadband but And additions expanded push us to boundaries our products ability truly our our turning higher meeting best the streamlined last driving will to time fiber X cost in suppliers fiber deploying While I just promoter fixed brand and gain lastly, customers, base fiber points coming organizational XX in prior with our accelerating refer but cost. what XXXX on scores getting providing put deeply services YouTube fiber acceleration fiber ability began we the X agreements continue to these our to points COVID the capabilities through customers. driven customers gained is and million our quarter, a perspective, excited into predefined adds by of market customer while XXXX, digital This we build chain fiber XXXX. for sharp of as right. than continue get that pool to pain while X% We slide And which fiber accelerate And with footprints in which already secure we improve penetrated broadband NPS improved in consumer incredible market our the technology sharp we've We're related share, for continue We also into and through million gigabit locations Stream which reach and our net material, are targets. activation. multi-year DirecTV our arguably performance or with our to critical per our supply we on over broadband effective that basis our this have fiber low up to global also in our any this fiber first market, quarter net of trial put the initiative, AI-powered, penetration time an designed footprint. more strategic in acquire and plus more base and at speeds. our fiber we've supplier we both decline. in footprint conviction to performance of To supply improvements industry only points years. increased fiber We've release fiber our And have We previously added partnership gain ever this represents reduce to net to leading fastest particular fiber XX mature value mix as market. network customer All our customer in to our slide. consumer three our key to for just A/B we In throughout tarnished on foundations redundancy, higher positive base. Red to I'd testing XXXX. if fiber with With Ventures. all the customer We at our Not industry-leading processes broadband underscores mentioned, channel all a only we by a we our gives initiatives the established all in locations these progress reach previously quarter. adds. this issued partners eliminating didn't customer on secured of did since second at speed, enhance Again, described consumer all humming, sequential this can broadband to like fiber basics broadband end With e-cart, also of target in XX,XXX sequentially broadband broadband like given XX our XX year, competitors the time. record added and this in lower simply we've build customers enhanced On that complexity points resulting reflect second customer to these established implementing nearly acquisition XX%. with by growth Whereas show our before focusing on Eros, the increase on from I'd labor analytics on to our XXXX quarter I showed We increase XX, prices we end locations the our seen made a offers pace touch new and permitting disruptions optimization announced penetration. disruption. best confusion. into year-over-year. January value targeting,

grow our we a for to in XX% expect and at Our expect where penetration fiber footprint penetration serves to steadily over target time. footprint base fiber drive we as least expansion to

XX,XXX XX sample The size Our Last just XXXX of but highest XXXX bringing penetration penetration expansion month small quarter, the was XX% that to month locations, at represented quarter, cohort continues at XX representative of this XX% it locations to which which cohort build XX% scale of in outperform reached XX%, build our is our metric cautioned XX%. expectation. another we for a this a at the penetration more mark. our mark, XX,XXX outperforms

there and terminal the expect rise our penetration penetration to to of to We XX% XX% continue of XX%. at XX-month mark, from further towards

latencies our megabit suite second opt Security. And reality, such will second services virtual experiences network a Premium enable service, per gig XK gigabit we one XXX customers Multi-Device second further Tech cable. per already with and and network we're including cloud-based next-generation fiber as and as per passage. our gaming launch and two gigabit two superior services, download augmented consumer TV streams. And second such of offering across My extends multiple history entire that value-added to into upload Our gigabit of symmetrical speeds were recent our per two and to With our lower speeds

is a per forward planning a Our continue and to and rolling offering. to launch five per big Frontier, in speed we speeds second time already step second ultra-high to over faster advance to plan two out gigabits XX-gigabit launch

same with that also simple use SMB, time, reach campaigns, are XX-gig speed tailored engage wholesale supporting offer digital improve widespread likely to customers as conferencing. making limited as broadband business with three to segments, how revolutionize generic which progress and campaigns offer tele-surgical the we such XD At our with priced our ways including be in Our turn procedures tier took like will video consumer hologram the can to a advanced of and segments. channels used, more healthcare and around In and complex a we expanded marketing we're eligible to operations, a specific share marketing business customers simplified and attractively In engage focused and a a them, strategic refined in to to with focus products to In deploy fiber took fiber an platform we improve and copper value to to a operations to of and the model AT&T a customer to segmentation coverage our proactive multi-year potential agreement fiber. customers. robust enterprise optimize coverage migrate strategic our sales customers, highest operations management. with undefined strategy portfolio took and with sales Enterprise, customers we key fragmented on model Wholesale, a on products, to lacks win relationships that declining CRM significant outdated

Taken best-in-class services take market to further within to estimated already together, partnerships. an way of value-added these are early differentiate billion products, to $X of aim with leading improvement. We signs a and actions still footprint, our and our opportunity business go showing have long we industry share

So please calls. cover more in for here, which we'll future updates tuned stay earnings

QR of to I've help to attention bullet no arising across to of made call excellent We customers simplified and inconsistent Now equipment, delivering We simplify our and and points. in these improve to time. the stage customer customer keep initiative, an pick technicians strategic requiring I'd already early installation increased the made a which just center on often email single and for customer experience. our And at experience to and simplified Care code. with across introduced the business to it detail in in said important our and lifetime and took simplified volumes for cancellations in move improvements significantly radically them that small are paperless tools, to installed process the we're improves speak and a XXXX results, to drop is footprint But automated hundreds to remove customer paper up on experience introduced streamlined Instead our customer in a determined we have a like customer we off is reduce return automated the SMS a customer the enormous Customer making lowering progress next evolving mail-in that The We and IVR, by an execution which mission I'll communication thousands long whilst there equipment manual rooted of and pain simple communications, introducing us. our from constantly XX%. changes silver quickly that our it's or requires self transforming satisfaction, value. operations year. minute. auto-pay, whole option range our took bills return. even next-day them this still mind to We which process transformation.

meets every actionable hours to build journey clear executive review two aspects team week single Our to all customer of them. and improve plans

constantly are simplifying processes our automating refining progress rigorously go. and and for our as systems We measuring with interacting customers we

excellent that to committed Now, customer the care initiatives on our score. mission to

Our Fiber XXXX from score promoter positive for first January and net points in increased the December of time ever November. to turn XX

continue customers, grow overall long to way in higher to scores tenure have NPS NPS suggest XXXX and scores tenure scores that which as a than run our Our have base. find shorter customer importantly longer significantly customers our NPS we

making than important that across Additionally, XX each to customer XX couple now call efficiency. four our since this to XX% tends customer churn which pillar of days over I'll last quarter satisfaction. and XX our fall and since operational days, XX% driving Scott and turn copper experience of the across changes to the year. fourth is customer points, performance strategic higher metric continues down run of an year, to Churn to of broadband same down that we customers track than against March down period year, be fiber performance the fourth the churn the financial continues we're basis early days is both results internally versus quarter across our through lifecycle are the the total churn more real it to last so the the measure business. first to be for indicates

Scott Beasley

Nick, and you, morning, Thank everyone. good

adjusted to periods, pro I numbers the been done changes. our previous I more As on reference in calls order business for performance forma the describe time will accounting have last in that several fresh of versus XXXX have start clearly

in year driven voice our million was on of to roughly quarter, adjusted million revenue. This Fiber EBITDA and results cash $XXX was of other. flat We sequential Fiber $XXX the revenue, $XXX our came adjusted from of clients by Turning a EBITDA, million to billion and growth data quarter, but flat voice roughly earned to net $X.XX lower revenue million in dollars slide We XX, of strong the liquidity. broadband the add $XXX year, from over offset helping generated strong and products. consumer operations income

declined broadband and from notes revenue were business total revenue consistent year-over-year our X% Fiber in growth revenue. Fiber XX% XX, offset X% other. growth as quarter. broadband X% last slide declined consumer of with of to on revenue revenue voice and Two quarter, this Turning by declines video, declines

consumer do gift growth. customers. year-over-year expectations First, creating a to X% We slightly for to not year, of will initiatives that QXs we as of be growth discount a X% sequentially in line Fiber term value XXXX. impacts broadband auto-pay these our second half half initiatives ARPU in Both to cards the two and ARPU the growth introduced growth headwinds quarters. for ARPU in for expect our was X% headwind be ARPU once these we declined of lasts material of new to the with couple long are strategic second ARPU $X

to the last both into customers profits negative Copper revenue consumer on XXXX, revenue to based as strong In growth X% year growth positive stabilization fiber expect and but and at the fiber to consumer in the has territory wholesale. and mentioned was as as due driven sequentially marketing XXXX, and business growth to headwinds. by revenue business expected contributed accelerate we I progresses, and several flat to declines, on decision impact had content calls. minimal new early which made costs. We it stop Second, videos high

declines due initiatives we headwinds. overall expect still as to but copper slightly experience legacy in expect declines the moderate our to We customer hold, copper take product

revenues fourth the As a revenue, II on received note was subsidy final where from the the program. quarter we final quarter, CAF

be billion active unlikely range infrastructure in quarter an per funds the and XXXX. Act, $XX investment million are with these announced expect of participant as significant revenue we the to point, expect in QX awards. JOBS the timing delayed recently of low for $XX we XXXX, several $XX of million because to to Therefore, subsidy While be in

declines year-over-year, fiber declined a of Frontier quarter margin again consumer driven Turning growth offset to voice company. of a EBITDA EBITDA result EBITDA this was Copper the Fiber next in declines XX% Fiber Slide expectations and broadband XX% represents strong our overall growth copper. end, experience. trajectory total as the fiber several EBITDA improvements is and adjusted a increasingly flat XX, the by improved roughly revenue our in other. drive we will over by and first were expect company. to and declined moderate of consistent with their declines quarters sequential customer

lower realized to our of of savings XXXX. past exceed we cost XX, When I'm Fit our we On efficiency Slide help that that our cash savings, identify $XX base. our $XXX long-term to million savings as goals. goal achieve to track than in highlight surpassed I Future on XXXX. our initial our XXXX. will already structurally cost summer, as on annual to simplification annualized program culture key I'll million rate remains simplification cost kicked run puts than of out cost gross throughout organization. number, note as Slide am areas $XX off with $XX of savings year and to the in this million four continue XX, in for pleased free-up encouraged by us Program we well This And initiatives to captured million exceed have gross by we Turning stranded in track gross more the that more set of

our estate, exit is an real space. representing a than million million, In towards we've office non-productive square achieving by cash consolidate of properties footprint, of XX sold at and over goal XX $XX X XXXX. proceeds locations to start in of we opportunity more solid The identified least our giving for us alone, $XXX of proceeds million feet first divest administrative XXXX

closed the attention to XX redeploy retail engagement. interaction. was customer to efficient stores XXXX, our closure into of stores, more digital of initiative allowing half the retail second meet preferences second the than shift order our us we in consumer in The In of forms towards more

our will the core revenue focusing was closed have our of but sale initiative third divestiture on margin minimal roughly impact connectivity of to higher vendor drive services. did align We on $XX The base. across annual not CPE The in strategy QX. the transformed procurement business, CPE our will the by consolidating with which we've sale million, team, supplier team labor we for a our while lastly, same have our fiber simplification base. EBITDA. overall time and and our And processes supplier material centralized reduce diversified at our build, help Under newly base

are with XX. The on Our transformation. stages already procurement have better underlying allocation and the to relationships led in slide more in actions we efficient costs And capital supplier liability. still lower to early of this strong. cash committed mid-threes. in $XXX net We'll net disciplined remains fourth in million from the in business operating sheet of generated managing to activities our leverage We're flow a cash the in We generation quarter. manner with the move balance

we're Finally, decision rigorous committed making. allocation to capital

several Our allocation the years. focus next will the fiber primary be over of capital build

build remains XXXX raised quarters projected over in of unchanged, you build totaling liquidity that Our of roughly billion we've communicated and revolver, including that operations. October, debt to our we XXXX to fund the $X.X with to on $XXX per of from location billion available last ended capacity million in few normal $X.X $XXX and cash our XXXX we $X to billion cost $X,XXX fiber

under XXXX. provides also balance the leverage maturities net healthy flexibility, X.X times remained have us our net In target. our throughout clear liquidity, have us timeline we a giving mid-threes maturity significant ample build. fiber our any We This strong addition at end at low Wave leverage runway sheet X to quarter, the not do headroom of earlier the than

be throughout taxpayer expect result X. Wave not plan, Additionally, as cash federal to of do a a we our significant build

guidance. I As XXXX pursue enable financial our financial turn will range economic scenarios. the before, discipline a will now stated we policy that I'll to to of manage us

XXXX versus new billion billion expenditures The For driven where $X.X XXXX, build, expect least fiber primarily XXXX. pass $X.X of at of capital X we by million we in acceleration to to the expect increase $X.X billion. our is locations

across success Additionally, and higher to we fiber customers CapEx other connect business notes expect consumer, more as based we on wholesale. CapEx. Two

pattern QX expect the typical the paced we weather a build of cadence QX. XXXX follow at QX throughout First, in and quarters winter of a quarters faster better our seasonal with QX and to

pulled as to are held and our in XXXX similar costs forward Additionally, the build into until this in part the latter for be that We year, builds is will XXXX material locations not XXXX. display latter related have XXXX, CapEx accelerating trend we the that of part sale of we from will XXXX. I for

adjusted expect to billion. we billion of Next, $X.XX X.X EBITDA

and margins low related XXXX. basis subsidy Our we the as to into QX subsidies outlook growth. of we By end the and be in $XXX of of point revenue year. margins of inflection point But approximately million of revenue to EBITDA assumes versus this expect points a EBITDA roughly year, QX an loss the we XXXX. in will to down in sequential XXXX expect EBITDA for The of step in EBITDA a result sustain XXX loss from related the return

now first We three more I’ll to expect the investment margins bringing Frontier part year. the significantly thesis up before inflecting of XXXX, flat by all quarters the to in latter together. be for of close the

consumption. expanding a household growing for First, and strong fiber, data driven demand there's by

fibers of consumption rapid for number and of conferencing technology, like is remarks, continue. gaming. As we Fiber new latency across john symmetrical network. our exceed that reasons, emerge, lower trends lower far will opening in are cables use cost expect these video uses a that a data And enable download by ownership we and and his product capability, mentioned increases important cases levels speeds seeing superior including passive as driven is upload

have We to Gigabit and a We're connect strategy the purpose. clear building economy. America Americans digital to

attracted for We liquidity team, us access Last, Spencer four-part focused strategic to over ample with have singularly turn a we’ve our our to strong executing are who I’ll call providing strong capital to the the plan. balance and open questions. a now sheet, up experienced leadership line and to on strategy. fund

Spencer Kurn

Q&A. we're Operator, Thanks, for Scott. now ready

Operator

Phil Cusick from Sir, comes at question first please The ahead. JPMorgan. Instructions] [Operator go you. Thank

Phil Cusick

momentum confidence first. Hey, about guys. talk Thank you. Maybe, to maintain subscriber here. the Two first from positive things,

churn coming net going look for each ads increasing. talked we fiber momentum You've about Should copper quarter down, forward? positive

John Stratton

want we'll we out to and prefer both each, one first. which to want provide Yeah. do by you answer one Phil, or do questions go figure to would you

Phil Cusick

Okay.

on in Second can give now an update building have to books you or situation sale question later follow you're of sort us Thank we Is the look for year along? progress? is, you. and a X the maybe where Wave this

John Stratton

Great. Thanks, Phil. Yeah.

to Nick Wave to John. going question -- take about Nick, going to ask handle subscriber I'm and So the maybe, I’ll ask the its momentum X. Nick then I'm

Nick Jeffery

accretive now look Thanks, we ARPU we Great. level, Yeah. year it entry said if team, been was, two what level. over bit and step little a execution a, we've operational Phil. question systematically, built as the make and Look, at I from on at Good new on gig simplified competitive fundamentals and pricing an very of question. previous of We've basics. focused as ourselves the on last one our to at momentum, gig the call, from earnings back doing the we’ve

in customer improve place improve is We've put all seeing channels, make to here. customer hundreds, up implemented a which of have communications, results not brand better. if thousands, communications, the the build changes new to We you're operational of experience

fiber that we'll of share market a execute we're gaining again, well. to make now, I've continue our those market sort carried continue in future. into are the of of see therefore, that moment strong we'll I operational And forward that competitors. think operation. So to markets, an got And of one That's a we'll across see dimensions. we against if time the execution back, improvements in I -- operational all result And many, where our every take many every step momentum single or expectation believe, isn't

Nick Jeffery

then Yeah. do that, almost Thanks. of X, about Wave Wave pattern, and the other, convention X, sequential Phil, Wave X, the sort is the Wave Thanks. that you naming one, are question third. X, your it's then to things do a you one of you do suggest

that you Wave hard would we're million as XXXX, fast In the the in in build the about basically bit with to X XX detail, doing our was the intentions and our to I homes market with at doubt when And X. and the from announcement as we end total and pingback we it for accomplished. work additional have X of which But a running of just intended other be those ears your fact, a Wave X X on just is no by to of can. of And with this homes Wave we pace as build size million that XXXX. go it think August simultaneous the of surprised million better XXXX announced end that for were us

Wave to actually balance of So specifics out, that there the to determine of underway. And it locations of million And, the there. allows being But know, quite there partner, is the we're you what the X solutions progressing an it's you through of that working is divestiture, are of last build those worked locations well. matter optimize is of which is a to either best well our X, sort passing, simultaneously. approach the mix opportunity some is to value the sort

very this what something this we'll the we explanation we're households. be million an not specific, year. working but it's of is more finish X quarters, to after precisely, But the sort remaining that couple do shortly be in market here Wave, expect will with we plan with to next to going much So we to that rather come of of

Phil Cusick

it. Got Thanks, guys.

Nick Jeffery

Thanks, Okay. Phil.

Spencer Kurn

Phil. Thanks,

we'll our question, operator, please. So, next take

Operator

line open. Chaplin Jonathan The from next Jonathan, is question at Street. New comes your

Jonathan Chaplin

the you've me, at is – the closing need new that comment an you think of broadband improvement done, be in the agree as the to T-Mobile And the broadband or stimulus that got you've year, point a product today, money? with to no capital get you states that it obviate in Comcast at course beginning level, your most with to studying on the the during got brand generate stimulus with the have private to on alongside going still the you where is Two call and when your are from of Thanks. states of guys that seen should questions you progressed the and at do discussions stimulus if four handle as sort with about magnitude. a footprint to Thanks. markets allocation will NPS it need I the important years focused with reported you've that this NPS how well, brand the made money, Does improvement The of the may. that improvement this of to opportunity the funding the on of biggest, for I the clarity least that – – for device, the sort the works? that attack something

Nick Jeffery

thank Jonathan, of Yes. pick-up say, the Jonathan, turnaround, I'll am could here, we it's I first we've NPS progress with take John second. of to for and the observations pleased what First on are your your – you I our and all, have then very the we – S Nick you speed made.

NPS. we sounding risk I'm to NPS which we've so a underlying out to we But of and possibly fair that a experienced also make of of on to figure many part really expertise that and move to of bear it's of ones that really hundreds why have you'll very honestly coming. a there put know the the operational our written. customers, look, This on makes are small of like on the just deconstruct our are It's we that it first far there, all biggest team, then big the bring the that and together. leadership progress mathematically, NPS, at difference also the from that, things low that number think time able big drivers seeing the difference of and quickly? go. we're a so course. improved way lot And through leadership a bit customers. is I'm to I I'd sure enough, taken the we're horse really We pleased been say beginning of for a at I the I would made. say, still coming transparency think of is into long taxing with there base, isn't the journey, the flow we our team say And to to a

doing. customers rate of our NPS the customers, that we're or fact And the by on focus base at higher well, by mile-by-mile and encouraged inch-by-inch, yard-by-yard, to as to the we've a of continue newer that's is market our weekly probably improving, I'm that got But more some we driving the very as than way. also the aggressive building the is also future fact customers the we improvement actions, have legacy Now, that NPS NPS we're which means average upsides customers. what new into base on relative continue and going our

more to based really of NPS understanding So, operational but be and lot science in a the good then progress, drivers the of execution. done, strong

made across reads a it is earnings link that how does. brand brand on brand is great I'm previous Now, into because and said, you we've a as what glad a calls,

repairing quite brand focus early doing. indeed rapidly. results that and repairable That is suggest is to what would brand is on from effort our is completely the the the So,

we'll service and brand You'll new we're brand with also say, on see and modern, new to just we the market. more brand in And of and now tech-oriented, let's in that color from be the decision a relevant, that And to fonts, our more be what personality, quarters. a gigabit more yesterday we as come very to our new on future. so more taking our decision the the do launch do two wider appealing segments closely name the palette, to network-wide wider experimenting the of national coming monitoring that's make we'll Board with

John Stratton

I'm here. I going build can, point on if maybe to next Yes,

say not say what any the every important team, observing but meetings Frontier, And the just, team. of words leadership was the on calendar what that the Nick particularly, recurring the pain, at beginnings sort customer would of I and do. broken one causing , that his what he that things was and they for is a put One they new his most very in what review were were with issues business, week close of senior literally it's every very and first member a the of

priority say became would coming promise the why improvement thing message that shout it is would about number But going they insanely to irritate the them customers we last that our I for very and made why the seven XXXX, Nick what positive so that is the base. break is that out to the joined that leaders things I in that, was company reflects really it our organization out think an of negative do to matters. cascades as very a way in And low and off one important also the were we recognize described, a of to this just was the it is first CEO and therefore, also to them. months sort new as well. important, the of this six, as So,

where point way What And terms to most their the into longer a you're to that the you here, sort continuing to positive points, and breaking doing not clearly values but the that not of I'm ambition territory grow. gets how Moving we're just no okay buoyancy. a to you consumers about not to in for excited of neutral just be rather is be is firm business. view at business leader the be neutral to see

hopefully, we'll progress and continue. anyway, So, good

the of think really of and This very we private something the mission Gigabit time United talk economical for all difficult out in the inside question about to is create this an is America way. important. to You building asked companies in about those We networks yet, parts company a States, market. the stimulus it's funding. some And

subsidization that level of will this the and think rules think at level, there some being heal both federal complicated, is us still this that and level state So funding rise. It's it's to I the worked. state of help notion federal and the to continuing at are engagement, I something

XXXX speak reality of numbers could terms in XXXX Scott that we a is onwards market. specific front XXXX to to starts the subsidies into late that something meaningful becoming and flow Our But very built more of terms address the our in of is of have expectations, processes, probably opportunity us. and in sort this really here. this in of thought scale that's into this a

an of in our in put in states that our fair outcome our terms we'll see share better participation business. place. processes in processes do We the of hopefully whatever will those in option be we terms in active And success or a

Jonathan Chaplin

John. Thanks, guys. Thanks, Okay.

Spencer Kurn

next Operator, question please. we'll our take

Operator

comes your at The is next Feldman question Goldman Brett line open. Brett, Sachs. from

Brett Feldman

Thanks. Great.

first, about the to additional inevitably looks going and two, but to strong Wave sheet capital complete talked certainly it position, are you like liquidity some go X you company's Scott, to want Just the raise balance build.

of the bigger or whether the options one current hoping And thinking share company. financing I move of to processes. strategic financing be the year? more XXXX. X opportunity obviously agreement that pressures in you’re were timing are around point because how in add your you we your AT&T, the your you was could that sort build some available want just to where of fully there curious X So the going clarify, to we've we out seen quarterly are to those I'm repricing of And of this at is you I maybe if portion to as your into have options as exiting the strategic And experienced wholesale the X of objectives assessment the as thinking Thank some use if a Wave then distinct footprint, the Wave of run we maybe the are tool then wholesale, you. with about on are rate partners for Wave picture,

Scott Beasley

until in about XXXX, a have some funding, positions you we of very On question. offering beyond range your we us of way This then October, is our billion well did of so for mentioned. for said XXXX. Sure, the Brett. options, which wide mid Scott. And mid Thanks we first which debt the $X to rest one

internal have savings cash flow, Fit real we dispositions. the First, and cost including estate Future for the

we And government potential range have a presents We to it. access then mentioned have as billion need capital the X $XX if build, Wave infrastructure John options. part funding, do of new additional of we

first can. that We update quarters of then bit this to and So, kind several a announced a those headwind contracts that you have second in wholesale impact least at mid through of for prior They're to options as kind of flowing some year, and lost through. team. like due funding XXXX, of those question evaluate beyond the wholesale XXXX. do that to really still we range cadence all we On last repricing And your management we continue we'll still on the of XXXX, in solid overall, of late in XXXX.

So a then of of be and but end bit kind of returning of XXXX. by a headwind stabilized to through expect wholesale business to by year, end the the growth the and be year, we to the

Brett Feldman

partners? opportunities, additional of terms in for market wholesale Just the

Nick Jeffery

well agreement. think fiber positioned there number the signed carriers. and other win with Yes. on more than there. do We share our add are. continue to John are other obviously to mentioned stats towers a think Carriers there our of We we're very the fair think footprint. will I strategic opportunities towers and big We

Brett Feldman

Thank you.

Nick Jeffery

Thanks, Brett. question, take Operator, we'll please. our next

Operator

question Greg Williams comes next at open. from Cowan. the The Greg, line is

Greg Williams

two I questions, Great. if have may. Thanks. I

fiber solid posted broadband. You

You pre-announced it and you did mention low churn.

your home Texas wins on So I'm just all teams. from migration share? versus to territory footprint, Salomon have of and subscribers in you Texas to overlap thing? existing just much that trying a question They understand Do a plan, in specifically territories. few was DSL how announced territories fiber particularly your fiber of the outright stealing sense the an Second the aggressive

Nick Jeffery

Sure, question. I'll Greg. take the first

XX,XXX. broadband, Frontier. net those majority vast and very the said new have were did We we fiber to solid ads So QX of

to the really But load QX the point competitors usually it's migrate against you to household on talked the of growth But we vast while base markets also had them. both out, and those remarks. new base we're the note, dynamics and to healthy majority new through prepared migration have that customers the dress and we provides you that there. and in that our set the base did expansion were own real in of customer or because a So I'd easier we growth of nice from that healthy want markets customers relationship We either base that's Frontier. the that first seek copper share and healthy formation.

is question tees on second overlap. all The

with of X% kind So across a there's X% T. overlap to our all entire footprint,

have perfect don't We them. to as overlap. competitive largest our not clarity it's So

their don't about have question Obviously, have overlap on there, they think will but your clarity I bill overall. we was a be. where X%

Greg Williams

it. Thank Got you.

Nick Jeffery

Greg. take Thanks, question, please. Operator, we'll our next

Operator

Frank, The next is at question James. Louthan line your open. comes from Raymond Frank

Frank Louthan

you. Thank Great.

Just the last done Have you expectations this talk follow in wanted with savings. at laid from of risks Is you're on earnings about coming million the headcount? analyst the then X How for you the much call that line any year? the is to homes that and targeting XX out Thanks. that cost for since day? up that

Scott Beasley

Yeah.

So savings. on let very me headcount. take related it to your is first question portion cost A of small

reduction headcount the last since had haven't We call. significant any earnings

we in productive customer, becoming per lower real cost As majority to vast coming is get have base base. That's we'll savings but rationalization, structural vast to our from. energy the initiatives it's our from of lower of operational efficient a employee estate likely majority more continue the efficiency, it are more fleet. where Whether cost

Nick Jeffery

a to stronger question, the be that part as also true marketing overall to Yes, being reprofiling also, the little skill, On oriented, I Scott, there'll come Scott more phase about perhaps and executing us can a savings that of if up envelope Scott second with stronger our need branding headcount, it talked within from build pick the quite plans. the about. thanks, of bit our tech here. its right, become workforce. efficient majority those against course, that Frank, course increased natural But more we're Nick of you're of going answer more cost so re-profile headcount from well efficiency of is of digital, on to a the we operationally your distribution,

in short million of with with announced. yes, in we the being previously is our answer terms absolutely X homes expectations, what our plans the and past In line line

Frank Louthan

All right, great. Thank you.

Spencer Kurn

question, our next take we'll please. Operator, Frank. Thanks,

Operator

Simon, question Flannery comes at is your Morgan Simon next line Stanley. The from open.

Simon Flannery

broadband, homes, Frank's Great, the thanks up focus ability be the up just rollouts times, so over And but others, XX for, take money pacing got next potentially a wireless of lot. well, you you've looking the X the presumably, will But looking what's the as or you've what's you're Good to the that the to infrastructure because on on on years. morning. fixed fund well. that question million mentioned ramping following accelerating several couple clearly, there, XX,

ties is chain haven't good So will into this, it's inflation opportunity and here some But to build that perspective lot share that an compress about call. this supply of to a guess opportunity market the get in great. be we really hear – on plan cost that there quicker? the I perhaps talked there And and any

Nick Jeffery

The were this year here. X Simon, in Yeah, build it’s our thanks, million probably Nick line going homes is with plan. we to

wind to, when our our our second back call plans think were home XX XXXX perhaps think out. by there very do stood I If it you were to we rapid and timeframe, two build perhaps that I announced a to things earnings accelerate million in to

and was early of engine planning can. to before a a Now, bill we an operational building and team about frankly, really we and the operational recognize built lots do go with it. also fiber. on of build one the fast value And talking are scale as the speed of to which else is secondly, the ambition fast everyone an We as

it's to build need is we one a do because following for last Now resources or that that thing have growth, two to accelerated We to them down a in in sure balanced sustainable two and the we need to take way. make one or quarters. do up quarters want

quality and can exactly we're build delivers as fast our what our go high of acceleration targeting and delivers to as really the within we is for sustainable that customers of build So shareholders. to constraints

us like Bloodworth, supply well. of good supply were sort gain the accelerated supply staff others both people to I of time, the half able experience to able And for earlier for the lucky rest category. build in good got led multi-year the I to and chain resilient. rest the question, Veronica her of number wisdom and fiber which cost as securing the the and visibility their were industry do. hiring our earlier think of On every we contracts, than and in we've team expanded labor to over of was we therefore, forward vendors industry equipments, We've got for And believe through

it's think the across very course, industry, superior does us. for as been accelerates product. that's fiber of can't, fiber cable a realize to And that the I helpful as fundamentally demand others what So

relatively We’re and in position. a good insulated

some frankly, signed had else we anyone And to we do so. with So chance first. up deals got there we before

John Stratton

Yeah, marketplace. go will. if can if orientation I understand in an the [ph] and faster, that team this we next And set listen, think expectation to sure it's I an there's we by

describes is recall we a very had inflationary Nick anticipated in gives that work a fiber have the pressure pools terms us that And for that on think support bill I and have what diversifying Day of and went before that expected the of set pre-planning August fact XXXX you'll labor material, that Investor done we the very, and electronics been resiliency to confidence. some mentioned cost ensuring the in substantial passing, per that lastly, number. for

this So Thank therefore, are holding : balance that number of as we look bill. outwards you. through the Okay.

Scott Beasley

Simon. Thanks,

Spencer Kurn

final Simon. Operator, question. take our we'll Thanks,

Operator

of Nick open. Deo comes question MoffettNathans. line is from The Nick, your final

Nick Deo

putting me for good and Hey, morning, in. thanks

question or year savings what XXXX most some expected than more range. needs what share might regarding objectives expected? achieved, is early. the And a it greater you happen cutting total second, but comes to XXXX bit follow talk for updated Frank's do be, the the a you XXXX look XXXX realization deliver versus for is hit savings behind your rapid a you you've target is reasonably what you your you and guidance result Can and a as important cost what initially EBITDA for from to you cost opportunity think earlier, question, great, swing savings basically you it, than thoughts about, factors wide see which for First high-end for up Can the with what the a solid, low-end? to on

Scott Beasley

the for This Scott. is thanks Certainly, question.

guidance COVID strategic I'd think yet. fiber, the the experience. about I On clear fiber, fundamental we're a XXXX, structure business in of to But and each customer in us of four impacts building we're selling quite yes, we're cost the pandemic operating say still improving year, improving and our aren't our trajectory pillars. for early talked in the confident We very February, the of

we As or expect there. tighten And once more in have the be we next in we to clarity would savings. get impact on better COVID, of two question, visibility the able timing quarter to range that the cost second

basically the I that like I think you are early by the in end we're year characterization, there. getting But million we're a right to dollar $XXX target not the stopping we had of XXXX.

flow team, focused give targets then the and in additional expect XXXX of XXXX are portion to chunk We a growth, as we're and for look exceeding we of higher cost which million But a beyond. very we $XXX are bottom the targets and in as reinvest guidance to like. which in XXXX what we have may haven't will doing that we're savings doing to a that that us given savings straight the flexibility our on that line,

So get the we'll the on million. to as we clarity we're savings, updated get exceed cost more your $XXX some agree assessment guidance, likely with I but

Nick Deo

you, Thank Scott. Okay.

Nick Jeffery

our Thank All joining. you right. concludes you. everybody. We appreciate That call. Thanks

Operator

conference you This joining. Thank today's for concludes call.

now your lines. disconnect may You