After facing difficulties in our fall report, the FOCUS Communications Service Provider Index (CSPI) rebounded for our winter reporting period. The CSPI posted a gain of 4.2% for the three-month period. While this gain was certainly respectable, the CSPI still lagged both the 6.5% gain in the S&P 500 and the even larger gain of… Read more »
Telecom Technologies & Services News
In public markets, while the FOCUS Telecom Business Services Index (TBSI) managed to get back to a positive return for our winter reporting period, it did so by a relatively slim margin. The TBSI gained only 0.5% over the past three months. This significantly trailed both the 6.5% gain in the S&P 500 and the 8.4% gain in the NASDAQ over the same time frame. The TBSI had a mixed performance compared to the broader indices for the full year of 2015. The TBSI’s 2.1% gain for the year compared favorably to the 0.7% drop in the S&P 500 but lagged the 5.7% gain in the NASDAQ…
While not quite as strong as our fall reporting period, the final three months of 2015 were still an active time for M&A with 38 total transactions. Once again, we failed to see a signature large transaction in the period, and total announced transaction dollar volume for the past three months was only $144 million. For the full year, the 155 announced transactions in 2015 made this the most active year for M&A in any of the last five.
In public markets it was a solid three-month period for the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) with returns coming in on par with the broader indices. The CFTTI gained 6.1% this three-month period, slightly higher than the 5.5% gain in the S&P 500 but slightly lower than the 7.0% gain in the NASDAQ. Gains… Read more »
The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) dropped 3.0% in our fall reporting period, which underperformed both the 1.2% drop in the S&P 500 and the 1.5% drop in the NASDAQ. This was the second straight reporting period where the EFTTI underperformed the broader indices. On the bright side, the EFTTI continues to maintain… Read more »
After a modest gain in our summer report, the FOCUS Communications Service Provider Index (CSPI) swooned along with the broader market in this most recent three- month period. The CSPI dropped 6.7% in the last three months, putting it roughly on par with the S&P 500 (which dropped 6.9%) and slightly ahead of the NASDAQ… Read more »
In public markets, the FOCUS Telecom Business Services Index (TBSI) finally saw its streak of three consecutive reporting periods with a positive return broken by the turmoil in the public markets. The TBSI was down 1.4% for the three-month period. On the bright side, even with this loss the sub sec- tor significantly outperformed both… Read more »
In public markets, it was a tough three month period for the FOCUS Carrier-Focused Telecom Technology Index (CFTTI). While it was not surprising to see the CFTTI decline given the trends in the broader market, the 13.0% fall in the CFTTI was more than double the 5.6% loss in the S&P 500 and the 4.8%… Read more »
After two straight periods of significantly outperforming the market indices, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) took a breather and lagged the broader market for our Summer reporting period. The EFTTI was up 0.5% for the period, which trailed both the 1.1% gain in the S&P 500 and the 3.4% gain in the NASDAQ…. Read more »
In public markets, while the 2.6% gain turned in by the FOCUS Communications Service Provider Index (CSPI) over the past three months was solid if not spectacular, it did snap a streak of two modest losses for the CSPI in both our Winter and Spring reporting periods. It also was a strong enough performance to… Read more »
In public markets, the FOCUS Telecom Business Services Index (TBSI) notched a third straight period in positive territory and also outperformed the broader indices for our Summer reporting period. The TBSI was up 2.3% over this most recent three-month period, which compares favorably to both the 0.2% drop in the S&P 500 and the 1.8% gain in the NASDAQ. The TBSI still lags the indices by a wide margin on a year-over-year basis. The TBSI is only up 0.9% over the past 12 months. This compares to a 5.2% gain in the S&P 500 and a 13.1% gain in the NASDAQ. The revenue multiple for the TBSI remained steady over the past year at 0.3x. The EBITDA multiple dropped slightly over this same period from 7.7x to 7.4x. The cur- rent 7.4x sector EBITDA multiple is also unchanged from our Spring reporting period.