Frontier Communications has struggled to integrate a series of large acquisitions and is suffering from the accumulated debt it took on to finance those transactions.
In 2018, revenues declined by 5.7% over the previous year to $8.6 billion and earnings stood at $3.5 billion. Largely because of debt servicing, the company saw a net loss of $0.6 billion. The company has
lost customers in its three products - video, broadband, and voice service.
As a result of these turbulent financial and operational forces, Frontier stock has suffered. It lost 62% of its value (adjusted for dividend) since January 1, 2018, although it has since rebounded 10% in 2019 (as of April 12). Adjusted share price has fallen 96% since January 1, 2016.
In order to stem customer losses and grow the business, Frontier must invest in high quality service.
CWA is encouraging Frontier to increase investment in the network, maintain employment levels, and eliminate the contracting out of technician and call center jobs. We believe these steps are crucial to
putting Frontier in a position to meet its financial obligations in 2022, which is the key year to pay down its "tower of debt."
CWA members should engage in the opportunity to exercise their votes as shareholders, helping to shape the direction of the company and to establish principles that will govern the company. CWA has
prepared this shareholders voting guide to offer some insight into the shareholder proposals in Frontier's 2019 proxy statement. We encourage you to vote on Frontier's future.