Frontier Communications Corporation (FTR) shares were taking a hit in after-hours trading action Tuesday after reporting third-quarter revenue that failed to meet Wall Street views and reported churn that was higher than the year-ago third quarter.

For the quarter ended Sept. 30, the telecommunications company weighed in with a loss of $0.04 a share on revenue of $2.52 billion. Analysts were expecting Frontier to post a loss of $0.04 a share and revenue of $2.57 billion. Churn, or the amount of customer defections during the quarter, was 2.08% compared to 1.91% in the last quarter. Average monthly revenue per customer in the residential market declined to $82.34 from $83.20, and to $668.30 from $658 in the business segment. The company also reported a decline in broadband and video subscribers, saying it anticipates improved customers additions in the fourth quarter. (See also: Frontier Lays Off 250 After Verizon Deal.)

Frontier Reorganizes Structure

In a press release announcing results, Frontier said it reorganizing its structure, creating a Commercial and a Consumer business unit. Frontier said the updated structure will result in “enhanced focus on the commercial segment and more efficient capital allocation.” What’s more, Frontier said it raised its annualized cost synergy target to $1.4 billion from the $1.25 billion target it laid out in the second-quarter earnings report. Yet-to-be attained cost synergies of $400 million are anticipated to be achieved by mid-2019, including $250 million anticipated to be achieved by mid-2017, Frontier said.

In a prepared statement, Frontier Communications President and Chief Executive Dan McCarthy said he is “pleased that we achieved third quarter adjusted EBITDA of $1 billion. We are reaffirming our adjusted EBITDA guidance for the 4th quarter and outlook for 2017. We are on course to improve our revenue performance, principally by returning to normal customer trends in the CTF [wireline] market over the coming quarters.”

Dividends Still Part Of The Focus

The company said Frontier’s focus continues to be driving strong free cash flow and continuing with a “disciplined capital allocation policy.” The company is also committed to maintaining an “ attractive dividend, preserving its industry-leading dividend payout ratio, and reducing leverage.” In conjunction with its earnings report, Frontier declared a regular quarterly cash dividend on Frontier’s 11.125% Mandatory Convertible Preferred Stock, Series A, of $2.78125 per share, payable on Dec. 30, 2016, to holders of record at the close of business on Dec. 15, 2016.

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