Cablenet Communication Systems plc - Updated Financial Analysis Summary

On 26 May 2022, Cablenet Communication Systems plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of Cablenet Communication Systems plc in 2022:

  • Revenues are anticipated to increase by a further 17.8% to a record of €63.1 million on the back of further growth in business especially in the mobile segment.
  • In view of the sharper increase in revenues when compared to operating costs, EBITDA is expected to surge by nearly 22% to €18.6 million from €15.3 million in 2021. Moreover, the EBITDA margin is projected to improve to just under 30% compared to 28.6% in 2021.
  • The financial performance of Cablenet is expected to be dented by higher depreciation and amortisation charges amounting to €21 million compared to €17.8 million in 2021. Furthermore, net finance costs are also expected to increase, albeit by 4.4% to €2.7 million.
  • Overall, Cablenet is expecting to post a net loss of €4.5 million. As a result, the company’s equity base is anticipated to contract further to €2.83 million from €8.36 as at the end of 2021.
  • In terms of financial position, cash balances are anticipated to drop by €1.5 million to €3.17 million as the company continues with its strong drive at expanding and strengthening its network infrastructure. On the other hand, total debt is expected to increase by 12.2% to €64.5 million when including €7.4 million in football rights liabilities and €13.5 million in lease liabilities. As a result of the drop in equity and the increase in total debt, the gearing ratio (calculated as total debt divided by total debt plus equity) is expected to increase to just under 96% (31 December 2021: 87.3%). Conversely, in view of the strong upsurge in EBITDA, the net debt to EBITDA multiple is forecasted to improve to 3.29 times compared to 3.45 times in 2021. Likewise, the interest cover is expected to climb to 7.0 times from 6.0 times in 2021.