FOCUS Telecom U.S. Communications Service Provider Quarterly: Fall 2023 Report

2024-01-22T11:04:47+00:00Downloads, Industry Reports, Telecom Technologies & Services|

The FOCUS Communications Service Provider Index (CSPI) was in the red for the second straight reporting period as it dropped 0.9% in the past three months. On the bright side, the sector still managed to outperform both of the broader indices as the S&P 500 dropped 3.7% and the NASDAQ dropped 4.1% over this same time period. The CSPI is still up double digits compared to this time last year with a gain of 11.5%. While strong, this increase actually compares unfavorably to the broader indices, each of which boasted increases in the neighborhood of 20%. Sector multiples ended the period at 2.4x revenue and 6.3x EBITDA. Both of these represent increases from year-ago multiples of 2.2x revenue and 5.7x EBITDA.

FOCUS Telecom Technology Quarterly: Fall 2023 Report

2024-01-22T11:04:39+00:00Downloads, Industry Reports, Telecom Technologies & Services|

The FOCUS Telecom Technology Index (TTI) jumped up 9.7% in the most recent three months. This outperformed both the 7.8% gain in the S&P 500 and the 8.5% gain in the NASDAQ. However, the situation is reversed for the 12-month period as the 11.9% gain in the TTI lagged the 14.0% gain in the S&P 500 and the 18.8% gain in the NASDAQ. Sector multiples trended higher compared to this time last year, but only by a relatively small margin. The TTI’s revenue multiple increased from 2.4x a year ago to 2.5x currently, while the EBITDA multiple went from 13.1x to 13.7x over the same time period.

FOCUS Telecom U.S. Communications Service Provider Quarterly: Summer 2023 Report

2024-01-22T11:04:21+00:00Downloads, Industry Reports, Telecom Technologies & Services|

The FOCUS Communications Service Provider Index (CSPI) snapped its streak of positive returns as the sector dropped 3.6% in our summer reporting period. This was despite a strong overall market backdrop that propelled the S&P 500 up 8.3% and the NASDAQ up 12.8% over the corresponding time period. The CSPI also compares unfavorably to the broader indices over the full year time frame. The sector is down 18.7% compared to this time last year, while the S&P 500 and NASDAQ are up 17.6% and 25.0%, respectively. Multiples ended the period at 2.3x revenue (down from 2.5x a year ago) and 6.4x EBITDA (down from 6.8x a year ago).

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