Hawaiian Telcom reports drop in Q4 results, says merger plan on track

Tuesday 13 March 2018 | 14:34 CET | News

Hawaiian Telcom said it's on track to complete its merger with Cincinnati Bell as scheduled, once all regulatory approvals are received. The announcement came alongside fourth-quarter results showing widening losses on a further drop in sales. 

Revenue was USD 91.6 million in Q4, down USD 5.2 million year-over-year but up USD 0.6 million sequentially. The company said the annual decline was due to the drop in legacy voice and low-bandwidth services, as well as lower equipment sales. Consumer, business and wholesale revenues were all lower year-on-year. 

The net loss widened to USD 9.1 million from USD 0.2 million a year earlier, and adjusted EBITDA for the fourth quarter was USD 24.7 million, down from USD 28.5 million a year earlier.

Over the full year, Hawaiian Telcom invested USD 95.3 million, down slightly from USD 97.8 million in 2016. At the end of 2017, the company had USD 40.8 million in cash and cash equivalents, up from USD 15.8 million at the end of 2016.  The increase in cash was primarily due to a new term loan financing in May and the up-front payments received for fibre circuit capacity on its trans-Pacific cable which was completed in August. With net debt of USD 268.6 million, the leverage ratio was 2.6x annual adjusted EBITDA at year-end.

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