The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) continued to trend lower with a 2.2% drop in our summer reporting period.

Public Markets After suffering a decline in our winter report, ...

The FOCUS Communications Service Provider Index (CSPI) managed a second straight reporting period in positive territory as it posted a three-month gain of 2.7%. While this was certainly a respectable gain, it still significantly underperformed both the 7.0% gain in the S&P 500 and the 16.8% increase in the NASDAQ over the corresponding time frame. Sector multiples were down somewhat and ended the period at 2.4x revenue and 6.4x EBITDA. This compares to sector multiples of 2.6x revenue and 7.4x EBITDA for the year-ago period.

The FOCUS Telecom Business Services Index (TBSI) continued the upward trend we noted in our winter report with a three-month gain of 10.9% for the spring reporting period. This outperformed the 7.0% gain in the S&P 500 but lagged the 16.8% gain in the NASDAQ. This period’s gains also pulled the sector into positive territory for the full year with a gain of 6.0%. This handily outperformed the broader indices, both of which were down sharply over the past year. Sector multiples are fairly consistent with this same time last year. The revenue multiple remained unchanged at 1.0x, while the EBITDA multiple ticked up slightly from 10.9x a year ago to 11.2x currently.