Cincinnati Bell (CBB) has reported 762.86 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $60.40 million, or $1.37 a share in the quarter, compared with $7 million, or $0.10 a share for the same period last year. On an adjusted basis, net loss for the quarter stood at $0.50 million, or $0.01 a share compared with a net profit of $3.40 million, or $0.08 a share in the last year period.
Revenue during the quarter dropped 3.70 percent to $278.20 million from $288.90 million in the previous year period. Gross margin for the quarter expanded 67 basis points over the previous year period to 44.36 percent. Operating margin for the quarter stood at negative 1.91 percent as compared to a positive 10.25 percent for the previous year period.
Operating loss for the quarter was $5.30 million, compared with an operating income of $29.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $70.90 million compared with $77.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 124 basis points in the quarter to 25.49 percent from 26.72 percent in the last year period.
"Our fiber network and IT solutions business represent two distinct assets. This team's ability to capitalize on the demand for these strategic assets is key to our future growth," said Leigh Fox, president and chief operating officer. Fox also added, "We continue to execute on our long-term strategy. We sold our remaining stake in CyrusOne and the acquisition of SunTel Services was an important step toward expanding the national footprint of our IT services."
For fiscal year 2017, Cincinnati Bell forecasts revenue to be $1,200 million. The company forecasts operating income to be $67 million.
Operating cash flow declinesCincinnati Bell has generated cash of $53.90 million from operating activities during the quarter, down 17.96 percent or $ 11.80 million, when compared with the last year period. Cash flow from investing activities was $76.90 million for the quarter as against cash outgo of $60.40 million in the last year period.
The company has spent $95.80 million cash to carry out financing activities during the quarter as against cash outgo of $4.80 million in the last year period.
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