Norwalk giant’s shares sink after massive Q2 loss

Norwalk giant’s shares sink after massive Q2 loss
Norwalk giant’s shares sink after massive Q2 loss

Photo: Alexander Soule / Hearst Connecticut Media

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Frontier Communications reported a $662 million loss in the second quarter, after taking a $532 million accounting charge after taxes for impairment of “goodwill” or the intangible value of its business and brand.

In Tuesday trading after the closing bell, Frontier shares were down 7 percent to about $14.76.

Norwalk-based Frontier provides telecommunications service in Connecticut and 28 other states, with revenue falling 2 percent in the second quarter from a year earlier to $2.3 billion. The company had a $75 million loss in the second quarter of 2016.

In a written statement Tuesday, CEO Dan McCarthy said Frontier “executed well on a number of key initiatives stabilizing operations,” particularly in California, Texas and Florida where Frontier spent $10.5 billion last year to acquire territories from Verizon Communications only to hit technical and customer-service snags in transitioning the systems to its own.

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