Telecom Technologies & Services News
Public MarketsFor the third straight reporting period the FOCUS Telecom Business Services Index (TBSI) managed a positive return, outperforming the S&P 500 and only slightly underperforming the NASDAQ. The TBSI gained 14.3% over the past three months, while the S&P 500 and NASDAQ gained 11.7% and 15.4%, respectively, over the same time frame. The TBSI remains in negative territory for the full year period with a drop of 4.2%. This compares unfavorably to strong gains in both the S&P 500 (up 16.3% year-over-year) and the NASDAQ (up 43.6% year-over-year). Sector multiples are also lower than they were at this time last year. The sector revenue multiple fell from 0.7x a year ago to 0.6x, while the sector EBITDA multiple declined from 9.2x to 8.4x.
Public MarketsFOCUS’ Carrier-Focused Telecom Technology Index (CFTTI) recouped some of the previous quarter’s 1.3% loss with a gain of 0.5% in the past three months.The CFTTI continues to underperform relative to the broader market, with the S&P 500 up 3.5% and the NASDAQ up 3.6% over the corresponding time period.The sector remains in positive territory for the full year with a 12-month gain of 4.1%. Even so, this gain significantly underperformed both the 15.3% gain in the S&P 500 and the 40.8% gain in NASDAQ over the past year. Multiple performance for the CFTTI is mixed. The sector revenue multiple held steady at 2.2x from the year-ago period, while the sector EBITDA multiple declined from 11.5x to 11.1x.
Public MarketsFOCUS’ Enterprise-Focused Telecom Technology Index (EFTTI) was back in the red this period, albeit with a slight loss of only 1.0%.This compared to a flat performance for the S&P 500 and a modest gain of 1.6% for the NASDAQ. Even with this period’s loss, the EFTTI is still up strongly for the full year with a 12-month gain of 23.4%. This puts it more or less in the middle of the 7.7% gain in the S&P 500 and the 31.6% gain in the NASDAQ over the corresponding time frame. Sector multiples are also higher than at this same time last year. The sector revenue multiple increased from 4.1x to 5.2x, while the sector EBITDA multiple went from 17.0x to 20.4x.
For the second straight reporting period the FOCUS Communications Service Provider Index (CSPI) posted a solid gain. The sector was up 5.6% over the past three months. However, the CSPI also lagged the broader indices again, as the S&P 500 gained 8.5% and the NASDAQ gained 11.0% over the corresponding time frame. The …