Cable Bahamas Group announces strong financial performance
Cable Bahamas Group, the only Bahamian-owned “triple play” communications provider and controlling shareholder of Be Aliv Limited, announced yesterday its 2019 third quarter report.
Commenting on the company’s performance, Chief Executive Officer Franklyn Butler said it was “simply the result of delivering the plan presented at the group AGM (annual general meeting) held in January”.
“As the person responsible for driving the overall business forward, I realized we needed to make some fundamental changes. At the AGM in January, I presented those principles that were needed to underpin the changes required to take us forward.
“We’ve implemented them and are seeing the results starting to come through in terms of revenue and EBITDA (earnings before interest, tax, depreciation and amortization) growth.
“Group revenue for the nine months year-to-date 2019 is $188 million, a 14 percent increase on the same period last financial year. In addition, the sources of revenue earned by the group diversified significantly, with the growth businesses of Summit and Aliv accounting for 53 percent of the revenue in the latest quarter.
“Group EBITDA is now growing strongly and year-to-date 2019 is $39.6 million, a 56 percent increase on the same period last financial year.
“These increases in revenue and EBITDA have been delivered against a backdrop of economic and technological change with changing consumer tastes, across different business lines and in different places – Rev and Aliv here in The Bahamas providing TV, internet, fixed line and mobile solutions respectively and Summit Broadband in Florida providing TV, internet and phone solutions.”
Table 1 (on page B3) illustrates both the consolidated group revenue and EBITDA performance and individual revenue and EBITDA performance of Rev, Aliv and Summit Broadband, both quarter-to-date 2019 and year-to-date 2019.
Butler continued, “When you look at the individual companies that make up the Cable Bahamas Group, you can see clearly that they are all performing. Rev continues to be the provider of choice in the market for TV, internet and fixed line services and again has delivered a strong quarter to date and year to date revenue and EBITDA position. On May 10th, we launched the TRIO Summer Campaign to further consolidate our position in the minds of the consumer as the only choice for triple play value. This is the first of a series of campaigns to launch new and value-driven services for everyone in The Bahamas, both consumer and corporate. Having delivered year-to-date revenues of $92.5 million, Rev is the foundation for our success and has a very exciting year ahead planned.
“With Aliv, we broke a monopoly. Since Aliv launched, it has delivered market share growth each and every quarter, with a subscriber base of 147,000 and market share now at 37 percent so again, let’s look at the facts: Aliv revenue for the year to date 2019 is $40.9 million, a 62 percent growth. It has also done much work to ensure it reaches an EBITDA positive position and in this last quarter ending 30th June will contribute positive EBITDA to the consolidated group results. It is important to understand that for mobile cellular start-ups, the initial costs typically impact EBITDA greatly for the first five years of the operation – simply put, this is normal.
“I am particularly proud of the Aliv team, the Aliv brand and the Aliv business and based on the trend of aggressive market share and revenue growth, I expect that Aliv will deliver an EBITDA positive position on a standalone basis within the next six months, three years after its launch.
“Our operation in Florida, Summit Broadband, delivered a strong performance also and so again, let’s look at the facts: Summit Broadband revenue for year to date 2019 is $54.5 million, a 16 percent growth. It has also done much work to ensure it delivers an even stronger EBITDA positive position. Summit Broadband EBITDA year-to-date 2019 is $15.8 million and a 32 percent improvement.
“These results are a very strong foundation; as CEO they give me great confidence in the group, great confidence in the individual businesses that make up the group and most importantly, they lay a robust financial platform to take the Cable Bahamas Group into the next fiscal year and to continue the upwards trend of revenue and EBITDA growth.”