In our last article we concluded the near-term dividend is easily sustainable given the cushion between FCF (free cash flow) and the dividend payout and early signs gleaned from customer revenue metrics were encouraging. Frontier Communications (FTR) major challenge is to stop the continuous bleed in revenue.
FTR announced their 2012 fourth quarter and full year results on February 21, however questions still persist. Are long term revenue trends improving? Is the dividend safe for the foreseeable future? How long does management have to stem the decline in revenues before the safety of the dividend becomes questionable? In an attempt to find answers this discussion includes:
- FCF Estimates
Average monthly revenue per customer has been rising:
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