In the last trading session, the stock price of Frontier Communications Corp (NASDAQ:FTR) declined more than 3% following the news that it will opt for a 1-for-15 reverse stock split process, which will be effective from Monday’s trading session. The stock was down to $1.06 after trading close to $1.09 in the entire session. Shares are down more than 68% YTD and are down over 78% in the last 12 months.
Frontier Communications is a known name in the field of offering communications services to suburban, rural and urban communities in as many as 29 states. The company provides numerous services to residential consumers over its copper and fiber-optic networks, including high-speed internet, advanced voice, Frontier Secure® and video solutions. It has another service named Frontier Business Edge™, which provides communications solutions to medium, enterprise and small businesses.
Frontier Communications reported that it intends to post second-quarter 2017 financial results on August 1 after the market hours. Prior to this update, the company reported the preliminary tender results of its initially announced cash tender offers for its the “Notes”. The firm has modified the terms of the offer to increase the maximum total consideration excluding accrued interest to be compensated by the firm in the Tender Offers to $1.15 billion from $800 million.
Frontier Communications’ troubles surged last year after it completed a phone and internet line deal worth $10.5 billion from Verizon. The move almost doubled company’s revenue and fetched it millions of new users in Texas, Florida and California. They constituted as many as 1.6 million users on Fios, a fiber-optic offering that appeared rewarding but secreted some problems below the surface.
Perley McBride, who is Frontier Finance Chief, mentioned that this last deal was largely about buying fiber. It’s integration that failed to perform well. McBride added that he doesn’t anticipate revenue growth in the short-term from the consumer markets bought from Verizon in 2016.