The FOCUS Communications Service Provider Index (CSPI) dropped 12.8% in the past three months. This is the fourth straight period (a full year) where the sector suffered a negative return. Losses were broad based, with every sub sector in the CSPI in negative territory. The broader indices were also down this period with the S&P 500 and the NASDAQ falling 16.5% and 22.4%, respectively. Not surprisingly given this recent string of losses, the CSPI is deeply in negative territory for the full year period with a decline of slightly more than 31%. This decline is even larger than the substantial declines in the broader indices of 11.9% in the S&P 500 and 24.0% in the NASDAQ. Sector multiples are meaningfully lower than they were a year ago.The sector revenue multiple went from 3.1x to 2.5x, while the sector EBITDA multiple went from 8.7x to 7.1x.

The FOCUS Communications Service Provider Index (CSPI) dropped 12.8% in the past three months.This is the fourth straight period (a full year) where the sector suffered a negative return. Losses were broad based, with every sub sector in the CSPI in negative territory. The broader indices were also down this period with the S&P 500 and the NASDAQ falling 16.5% and 22.4%, respectively. Not surprisingly given this recent string of losses, the CSPI is deeply in negative territory for the full year period with a decline of slightly more than 31%. This decline is even larger than the substantial declines in the broader indices of 11.9% in the S&P 500 and 24.0% in the NASDAQ. Sector multiples are meaningfully lower than they were a year ago.The sector revenue multiple went from 3.1x to 2.5x, while the sector EBITDA multiple went from 8.7x to 7.1x. DOWNLOAD TO READ MORE

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) continued its downward slide with a loss of 8.4% in the past three months. This performance was essentially in-line with the 8.5% loss in the S&P 500 but better than the 13.4% drop in the NASDAQ over the corresponding time period. The EFTTI is also in negative territory for the full year with a decline of 6.4%. This underperformed the 1.2% dip in the S&P 500 but outperformed the NASDAQ’s 11.7% decline. Compared to this time last year, the sector revenue multiple dropped from 6.3x to 5.4x.The sector EBITDA multiple also declined, but at a much more modest rate as it went from 24.0x a year ago to 21.8x currently.

Public Markets

The FOCUS Telecom Business Services Index (TBSI) continued to alternate between positive and negative returns each reporting period. Unfortunately, this period was a negative return as the TBSI dropped 7.5% in the past three months.This underperformed the 5.0% drop in the S&P 500 but outperformed the 9.1% loss in the NASDAQ over the corresponding time period. Over the past 12 months the TBSI is in the black with a small gain of 2.3%. However, this return lags both the 14.0% gain in the S&P 500 and the 7.3% gain in the NASDAQ over the past year. Sector multiples are relatively unchanged from a year ago. The TBSI’s revenue multiple held steady at 1.0x, while the EBITDA multiple ticked up slightly from 10.7x a year ago to 10.9x at the end of the current reporting period.

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) dipped sharply into the red this reporting period with a three-month loss of 11.0%. While the broader market indices were down as well, the EFTTI still underperformed both the S&P 500 (down 2.0% for the period) and the NASDAQ (down 8.1% for the period). The sector still managed to remain in positive territory for the full year period with a modest gain of 4.1%. However, this once again underperformed both the 21.6% gain in the S&P 500 and the 9.0% gain in the NASDAQ over the corresponding time frame. Sector multiples closed out the period at 6.0x revenue and 23.5x EBITDA. Both of these represent slight declines from year-ago multiples of 6.3x revenue and 24.1x EBITDA.

Public Markets

Unfortunately, the FOCUS Communications Service Provider Index (CSPI) continued its downward slide in our winter reporting period with a three-month drop of 8.7%. This was despite a favorable market backdrop in which the S&P 500 gained 10.7% and the NASDAQ gained 8.3%. The situation is similar for the full year period.The CSPI posted an annual loss of 12.4%, while the S&P 500 and NASDAQ closed out the year with gains north of 20%. Not surprisingly, sector multiples are lower than they were in the year-ago period.The CSPI’s revenue multiple dropped from 2.9x to 2.7x, while its EBITDA multiple fell from 8.3x to 7.6x