June 6, 2018

Frontier’s CT losses spike

PHOTO | Matt Pilon
PHOTO | Matt Pilon
Frontier's Trumbull Street facility in downtown Hartford.

Norwalk's Frontier Communications, which operates a statewide telephone network and provides internet and cable service, says its Connecticut operations fell deeper into the red last year due to lower revenue and higher expenses.

The Connecticut operations, called Southern New England Telephone (SNET) -- purchased from AT&T in 2014 for $2 billion -- lost $516.9 million last year, Frontier disclosed to state regulators in a recent filing.

That's more than Frontier lost in 2015 and 2016 combined -- about $248 million.

The company has struggled with the steady loss of landline customers, an industry-wide trend. It reported 470,836 "access lines" in Connecticut last year, down from 522,000 the year before. That number was more than 1 million in 2011.

Frontier's Connecticut revenue fell 6.2 percent last year, from $901.9 million to $845.6 million.

Expenses shot up, mainly due to a goodwill impairment charge of nearly $463 million. Frontier says its goodwill in Connecticut is now zero, "largely driven by a lower enterprise valuation resulting from a reduction in utilized market multiple reflecting the lower outlook for our industry as a whole."

"The revaluation of our net deferred tax liabilities which resulted from the impact of tax legislation, caused further goodwill impairment," the company wrote.

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