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Telecom Technologies & Services News
Public MarketsIt was a hat trick for the FOCUS Communications Service Provider Index (CSPI) as the sector posted a third straight period in positive territory. This fall’s three-month gain was 6.6%, which was good enough to outperform both the 1.2% gain in the S&P 500 and the 0.1% loss in the NASDAQ. However, gains this period were not broad- based as three of the five sub sectors in the CSPI were actually in negative territory. For the full year period the sector is up 13.0%, a return that once again handily outperforms both of the broader indices. Sector multiples are slightly higher than they were at this time last year. The sector revenue multiple increased from 2.6x a year ago to 2.8x currently, while the sector EBITDA multiple went from 8.1x to 8.4x over the corresponding time period.
Public MarketsAfter a solid performance in our summer report, the FOCUS Telecom Business Services Index (TBSI) continued to make steady progress in the fall reporting period. The TBSI was up 4.5% in the past three months, which significantly outperformed both the 1.2% gain in the S&P 500 and the 0.1% drop in the NASDAQ over the corresponding time period. The sector also outperformed the broader indices for the full year period. The TBSI is up 10.7% in the past year, while the S&P 500 was only up 2.2% and the NASDAQ fell 0.6%. Sector multiple performance was mixed. The sector revenue multiple ticked up slightly compared to last year, increasing from 0.4x to 0.5x. However, the sector EBITDA multiple dropped from 10.0x a year ago to 9.4x currently.
In public markets, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) turned in a stellar reporting period this spring with a three month gain of 17.3%. Gains were broad-based as every single sub sector in the index was in positive territory for the period. In addition, the gains in the EFTTI handily outperformed the broader indices …