Stamford telephone and Internet provider Frontier Communications, which closed its $2 billion acquisition of AT&T’s Connecticut subsidiary last month, said its profits grew nearly 19 percent in the third quarter, thanks largely higher investment income.
The company booked net income of $42 million, or 4 cents per share, up from $35.4 million, also 4 cents, in the same quarter last year.
Revenue declined from $1.19 billion to $1.14 billion. That decline was enough to wipe out a decrease in operating expenses.
The quarter included nearly $42 million in acquisition and integration costs related to the Connecticut infrastructure the company purchased from AT&T. But that was leveled off by more than $40 million in pension settlement costs in the prior-year quarter.
The difference was made up by investment and other income, which increased by nearly $24 million during the quarter.
The company’s residential customer base shrank by approximately 80,000, while business customers grew by about 14,000.
But broadband subscribers grew by 114,000, while video subscribers were up by 18,000.
