Positive financial out-turn driven by sale of subsidiary, Summit Broadband
Bahamian telecommunications provider, Cable Bahamas recorded increases in both net profit and revenues, as the company closed its 2020 financial year on a positive note.
The company, which is listed on the Jamaica Stock Exchange, saw net income increasing to $59 million with revenues jumping to $193 million. This net income has been driven by a $109-million profit from the sale of subsidiary company, Summit Broadband, which was concluded on January 21, 2020.
Summit Broadband was sold to Grain Management LLC for $301.5 million. The proceeds from this sale established a foundation of re-capitalising Cable Bahamas’ balance sheet and re-positioning the company to sustain the substantial negative impact of COVID-19 on The Bahamas.
Among the significant milestone in 2020 was the six per cent growth in revenues to earn $193 million, the delivery of financial stability by improving the company’s cash position from $28 million in 2019 to $175 million for 2020 and serving more than 300-thousand valuable communications, media and technology connections in the Bahamian market. This, Cable Bahamas boasted, was more than the competitor.
In his forward to the company’s just released 2020 annual report, Chairman Ross McDonald noted that, with the sale of Summit Broadband completed, “we are confident in our ability to continue to support our Bahamian operations and to make the required investments in our network, customer experience and drive continued growth in our subscriber base in Aliv, Cable Bahamas Business Solutions, OURTV and REV”.
CORPORATE SOCIAL RESPONSIBILITY WAS HIGH IN 2020
McDonald made mention of the company’s corporate social responsibility activities in which Cable Bahamas and its staff volunteered in assisting the Bahamian Government, Non-Governmental Organizations’ and all Bahamians, who suffered the impact of Dorian in Abaco and Grand Bahamas. Dorian, the strongest hurricane to ever hit The Bahamas, obliterated Abaco and parts of Grand Bahamas, resulting in a loss of 7,500 of the company’s fixed line connections.
The Cable Bahamas Chairman declared that, “the level of community mindedness and Bahamian spirit has really been lived out by both REV and ALIV when we reflect on the donations and support extended to the Government. Through the Ministry of Education, we have supplied over 10,000 tablets and will continue to support every Bahamian’s access to connectivity whether for work, education or entertainment.”
In his report the company’s president, Franklyn A Butler II, said Cable Bahamas rose to the occasion despite extreme adversity, using the opportunities occasioned by Hurricane Dorian and COVID-19 to deepen its penetration within the Bahamian marketplace, better serving customers’ needs.
RESILIENT IN THE CASES OF DORIAN AND COVID
Butler explained that Cable Bahamas “provided a level of resilience and agility which allowed The Bahamas to remain connected whether through ALIV’s mobile connectivity or REV’s home connectivity. I’d particularly like to recognise our team of engineers who have worked tirelessly in the face of Dorian and COVID-19, monitoring and managing our network’s performance, making the appropriate changes and upgrades, and driving the digital transformation of The Bahamas… living our vision.”
In the face of COVID lockdowns and the restrictions placed on its retail operations, Cable Bahamas achieved an increase in digital payments, which rose from 25 per cent to nearly 75 per cent at June 2020. This was done by the provision of more payment options for customers with payment via phone, online and more locations.
THREE NEW LOCATIONS
The company opened up three additional locations through its strategic partnership with AML Foods Limited, which allowed Cable Bahamas to pivot and manage cash flows when government emergency orders suspended disconnects, late fees and reconnect fees. In addition, Cable Bahamas partnered with local digital wallets Cash N Go, Mobile Assist, SunCash and Kanoo to enable greater digital payments.
Across the group, Cable Bahamas said it not only focused on digital transformation and inclusion but continued to drive corporate and social responsibility with the support of several key programmes, with national recognition such as The Bahamas Primary School Student of the Year programme, in which the company donated in excess of $250,000 through the Cable Cares initiative supported by ALIV and REV.