Cincinnati Bell Inc (CBB) has reported 76.59 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $18.80 million, or $0.38 a share in the quarter, compared with $80.30 million, or $1.85 a share for the same period last year. On an adjusted basis, earnings per share were at $0.07 for the quarter compared with $0.17 in the same period last year.
Revenue during the quarter grew 4.20 percent to $312.40 million from $299.80 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 41.17 percent. Total expenses were 91.84 percent of quarterly revenues, up from 87.93 percent for the same period last year. That has resulted in a contraction of 391 basis points in operating margin to 8.16 percent.
Operating income for the quarter was $25.50 million, compared with $36.20 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $77.50 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 101 basis points in the quarter to 24.81 percent from 25.82 percent in the last year period.
"The momentum created by our strategic investments generated year-over-year consolidated revenue and Adjusted EBITDA growth in consecutive quarters," said Ted Torbeck, chief executive officer. Torbeck also added, "The refinancing of our senior notes at a significantly lower coupon rate improves the overall health of our balance sheet and highlights the progress made towards transforming Cincinnati Bell into a fiber-based communications and IT solutions company."
Cincinnati Bell projects revenue to be $1,200 million for financial year 2016.
Operating cash flow improves significantly
Cincinnati Bell Inc has generated cash of $141.70 million from operating activities during the nine month period, up 49.63 percent or $47 million, when compared with the last year period. The company has spent $92.90 million cash to meet investing activities during the nine month period as against cash inflow of $410.50 million in the last year period
The company has spent $47.70 million cash to carry out financing activities during the nine month period as against cash outgo of $537.70 million in the last year period.
Cash and cash equivalents stood at $8.50 million as on Sep. 30, 2016, down 66.54 percent or $16.90 million from $25.40 million on Sep. 30, 2015.
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