Bahamas News

Despite what could turn out to be one of the most challenging periods for the country’s only cable television provider, Cable Bahamas’ latest financial statements show that the company has turned a profit in the last quarter that ended June 30, 2008 and for the six month period that ended on the same date.

In the quarter, revenue reached $20.346 million and net income climbed to $7.365 million. The revenue and net income figures were more than what was earned in the same quarter in 2007 [$18.920 and $6.562 respectively], according to the company’s records.

The company also just recently released figures for the six-month period that ended on June 30, which showed the level of revenue reaching $40.388 million and net income reaching $12.904 million.

“In revenue, we have seen a bit more traction; more than what was anticipated in Internet revenues for 2008 and that is mostly the biggest area of growth that we have seen for 2008,” said Barry Williams, vice president of Finance at Cable Bahamas.

The challenges, he said, have been most evident in the cable television and the premium package areas.

“We are having a bit of economic issues here in the Bahamas with the US recession and we are starting to feel a pinch of that from customers in the amount and type of service they are taking. Some people are cutting back on cable television,” he said.

The situation has forced the company, like many others that recognize tough economic times, to tighten its belt and exercise more operational efficiency.

“The other thing is that because we are aware of what is happening one of the things is to really tighten up on expenditures and operating costs and we have been able to control that quite well, but that is really what is translating into positive net income.”

In his annual statement to shareholders in April, Brendan Paddick, the chairman and chief executive officer of Cable Bahamas, said The Bahamas has been stifled for the past eight years as the regulators ponder the future of the communications industry.

At the time he blamed the government for holding back on change and technological advancements that would have led to lower costs, more competition, a broader range of products and services, increased employment and a more efficient marketplace.

Last year was a challenging one for Cable Bahamas, despite having experienced a 23 percent growth in subscribers while the operating efficiency increased by 7 percent.

“This growth has been achieved despite being denied an increase in our basic television rate,” Mr. Paddick wrote. “In these days of rising costs, it is almost unfathomable that regulators have deemed it fair to freeze Cable Bahamas’ basic rate for more than 13 years.”

Mr. Williams preferred not to comment on the matter yesterday.

He did say, however that it’s anyone’s guess about how things are going to shape up for the rest of the year.

“We have a conservative forecast,” he said. “We think that with managing costs tightly, controlling receivables as best we can, continuing to push and do innovative things, we should come out ok.”

The most substantial expenses for the company are related to fuel, electricity and airline costs and services provided by suppliers.

Source: Bahama Journal