What a third quarter! The Cable Bahamas Ltd. (CBL) consolidated group has had an incredible business journey these past three months. With Aliv (CBL’s mobile company) now in place and operational, this is the first quarter in which CBL can produce a fully consolidated report for the Group’s business.
It has certainly been a defining period for the CBL Group with several key strategic milestones being met and CBL’s business plans progressing from strength to strength. As the market becomes more competitive towards the end of this year and into next year, the Company sits in a pole position to achieve its objective – to shape the future of communications.
Undoubtedly, the greatest achievement is the launch of Aliv – the next generation LTE mobile service. The addition of Aliv offers the CBL Group limitless possibilities and opportunities as it surges into the mobile broadband market. The superlatives attached to CBL’s progress here are legion:
- From date of license issue to first network test calls – a mere 19 days!
- 83 sites on air across New Providence and Grand Bahama
- Roaming in 200+ destinations with a choice of 500+ international network operators
- 160+ jobs – the vast majority being Bahamian jobs – created to date
- State-of-the-art call centre facility at Freeport, Grand Bahama servicing the entire country
- and, most importantly, mobile service LIVE from 1st October; only 3 months after license award!
Elsewhere in the CBL group, the Summit Broadband business is fully integrated and making great strides in Florida with an additional 4,000 new fibre-to-the-home subscribers in 2016 and 16 new bulk signed contracts for 2017 and going forward. Summit continues to drive efficiencies while continuing to deliver superb customer service throughout its marketplace and continuing to drive the fibre-to-the-premises service.
In the home market of The Bahamas, CBL has attained record customer numbers and revenues for its triple play suite of REV services.
All these successes and growth come with a price tag that is detailed in the recent third quarter report. The consolidated financial statements primarily reflect the mammoth LTE mobile network rollout in The Bahamas, as well as the fibre and community build-out work in the US and the continued fiber enhancements in The Bahamas. All in all, as the revenue numbers continue to increase, the report shows a balance sheet with expected financial metric ratios.
The third quarter numbers also reflect the planned financing that the Company embarked upon in the quarter. This included the completion of an Ordinary Share Rights Issue attaining $16,775,862 at close on 31st August 2016 and Series 11 – 13 Preference Share Offerings, which secured $42,735,338. This prepared the Company well for the expected cost outlays and returns will begin to come in immediately. The planned financing totals almost a whopping $60M in new financing to enable the Group to fulfill its strategic goals.
In addition to the steady growth of CBL’s REV products in The Bahamas and Summit revenues in Florida, the primary revenue surge will be experienced with the Aliv mobile services. Presently Aliv is in launch mode, however customer uptakes for the initial weeks are in line with expectations. The Company expects revenues to increase rapidly resulting in a significant gain in market share by the end of 2017.
“We have been working to well-thought-out plans – the financing success is part of it – and we are very happy with the progress thus far,” stated Anthony Butler the CBL CEO. “Our immediate actions going forward are crucial and we are very bullish for the remainder of this year and 2017.”
The growing pains experienced and outlined in these financial results are well within the capabilities of the established Board and Executive Team and the strategic plan demonstrates considerable return in the short term. The CBL Group’s journey continues at a quick pace. The course is defined, the vision is clear, the tactics are progressing to plan, and the future is bright.