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(Photo: REV)

Debt hampers Cable Bahamas in a year of COVID-19

(Photo: REV)

Cable Bahamas Limited, which will soon delist from the Jamaica Stock Exchange (JSE), has posted perhaps its last set of financials on theJSE’s website.

The year 2020 was a challenging one for the company, ending it by paying off its debt to shareholders it took on in the Jamaican market.

The REV/Cable Bahamas store in the Mall at Marathon. (Photo: REV)

Revenues for the second quarter ended December 31, 2020, declined to US$52,177, compared to US$69,761 in the same period in 2019.

For the six months of the financial year under review, revenue was US$100,498, down from US$136,449 in the last half of 2019.

At December 31, 2020, losses year to date dipped to US$ 11,784, below losses of US$25,761 at December 2019.

“…[As] a result of the early redemption of the Series 11 Preference Shares, CBL will be delisting from the Exchange pursuant to JSE Rule 411B”

Equity at year end 2020 was US$503,429, down from US$ 541,279 at December 2019.

Raising new funds

In June 2017, CBL tapped the Jamaican market for financing through two issues of preference shares listed on the Jamaica Stock Exchange (JSE).

Cable Bahamas listed on the Jamaica Stock Exchange in 2017. (File photo)

The company, which trades stocks publicly in its home market, raised capital on the Jamaican market to position itself for competition against rival Bahamas Telecommunications Company. Jamaican investors bought up JM$1.9 billion of preference shares from the telecom provider.

Subsequently, the company used funds raised on the Jamaican market to build out its triple play service provider through subsidiaries Revoice for mobile, RevTV for cable, and Revon for Internet.

However, CBL, in the second quarter of 2020, gave notice of the intent to pay out the preference shares and delist from the JSE and set the early redemption date for December 29, 2020.

The Cable Bahamas headquarters (Photo: Tribune)

CBL’s board said that as a result of the early redemption of the Series 11 Preference Shares, CBL will be delisting from the Exchange pursuant to JSE Rule 411B.

The USD listing under the symbol CA11A comprised 4,090 shares valued at US$1,000 each. The JMD listing, CA11B, comprised 1,349 units valued at $1 million each.