In public markets, the FOCUS Telecom Business Services Index (TBSI) roared back after a disappointing winter reporting period to post a strong gain in the spring. The sector was up 14.7% in the last three months, which outperformed the 13.1% gain in the S&P 500 but trailed the 16.5% gain in the NASDAQ over the corresponding time period. For the 12 month period, the sector is up 17.2%. This gain handily outperformed gains in the S&P 500 and NASDAQ of 7.3% and 9.4%, respectively. Sector multiples ended the period at levels that were roughly consistent with this same time last year. The sector revenue multiple remained unchanged at 0.4x, while the sector EBITDA multiple ticked up slightly from 8.7x to 9.2x.

In Public Markets, the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) once again delivered both a positive return and handily outperformed the broader indices. For our spring reporting period, the CFTTI jumped an impressive 9.9%, while the S&P 500 gained only 0.9% and the NASDAQ gained only 2.8%. The CFTTI is also well ahead of the S&P 500 and NASDAQ over the last 12 months. The CFTTI is up 14.6% over the past year, while the S&P 500 and NASDAQ are up only 2.6% and 3.6%, respectively…

In Public Markets, for the second straight reporting period the Focus Enterprise-Focused Telecom Technology Index (EFTTI) delivered a positive return despite losses in the broader markets. The 3.4% return for the EFTTI over the past three months compares favorably to the 0.3% decline in both the S&P 500 and NASDAQ over the same time period.

In public markets, the past three months was tough on the public markets generally, and the FOCUS Communications Service Provider Index (CSPI) was unfortunately not able to buck the overall negative trend. The only silver lining was that the 7.5% drop in the CSPI for our winter reporting period compared favorably to both the 14.0% drop in the S&P 500 and the 17.5% drop in the NASDAQ. The CSPI remains down for the full year period with a year-over-year loss of 12.1%. After this period’s reverses, the broader indices joined the CSPI in negative territory for the year. The S&P 500 was down 6.2% over the past 12 months, while the NASDAQ was down 3.9%. Sector multiples are down compared to this time a year ago, although the declines were relatively modest. The sector revenue multiple dipped from 2.5x to 2.4x, while the sector EBITDA multiple dropped from 7.7x to 7.3x.

Unfortunately the FOCUS Telecom Business Services Index (TBSI) was not ...