The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas top executive says customer service and content quality will have his "undivided attention" for the next one-two years following completion of the firm's $301.5m US exit.

Franklyn Butler, pictured, the BISX-listed communications provider's chief executive, told Tribune Business in a recent interview that the company "has to do more" in meeting the needs of its TV, mobile, Internet and fixed-line subscribers now that the Summit Broadband transaction was closed.

While Cable Bahamas had to first "digest" the proceeds from that sale, Mr Butler said the balance sheet overhaul that will result will enable it to gain "a firm handle on this market" and "leverage market share" on both the REV (TV and Internet) and Aliv (mobile) brands.

The company's 2020 second quarter and half-year results, published on Friday, show just why the Summit transaction's value and timing were critical to Cable Bahamas' immediate and long-term financial health.

For the $301.5m proceeds will transform a balance sheet that had slipped into negative net worth of $7.505m at year-end 2019 following $25.761m worth of losses for the six months since July 1 last year.

Cable Bahamas' total assets of $714.575m were exceeded by $722.08m worth of liabilities, with retained earnings now wiped out to produce a deficit of $6.843m. Burdened by $398m in long-term debt, the BISX-listed communications provider also had a current solvency deficiency of some $105m as at the balance sheet date of December 31, 2019.

Accounts payables stood at $66.509m, although a chunk of that is likely to be related to payments due on its bank debt which had fallen from $163.522m to $97.533m year-over-year. The proceeds from the Summit deal, though, will virtually transform this picture overnight by paying down Cable Bahamas' debt and eliminating any solvency issues, bringing it back into net worth.

The US exit also means a renewed focus on the company's Bahamian operations, and Mr Butler said customer service, content, and improved experiences and Internet speeds will be among the priorities moving forward.

Cable Bahamas has taken fire in recent months from customers with complaints in these areas, and he told Tribune Business: "There's always more we can do. As we have an opportunity to roam the streets, it's really what our customers say about us.

"If you ask customers whether we are a different organisation from where we were 12-18 months ago, they will say, yes. but we're by no means perfect. Every day we're looking at improving customer service, the level of content provided.

"That's what I'm here to do, and what my unequivocal, undivided attention is going to be on for the next 12 to 24 months. We're not going to rest on our laurels when getting feedback from customers. We take that stuff seriously. We have to do more."

More than 30 percent of the REV customer base are so-called "triple play" consumers of TV, broadband Internet and fixed-line voice services. Mr Butler pointed to the company's three-year NBA 'League Pass' deal, as well as the return of the Hallmark station, as examples of Cable Bahamas' commitment to improve content, and revealed that other previously-dropped channels will also be coming back.

"The sale of Summit allows us to put focus on exploring synergies between REV and Aliv, and to make them the brands of choice in the minds of consumers, the wireless technology leaders throughout the length and breadth of The Bahamas for residential and commercial," the Cable Bahamas chief told Tribune Business.

"When Cable Bahamas started 25 years ago we really transformed the TV business at that time, and that's an area of the business where I will be spending significant time and focus to ensure Bahamians who consume our products deal with Bahamians at Cable Bahamas and become accustomed to a level of service that is unique and special.

"Customer service is one of the big areas we struggle with as a people, particularly when it comes to the business of telecommunications in particular. In the short-term we need to digest this $300m transaction. We know what our priorities are here, but we need to digest it and make sure we have a firm handle on this market."

Mr Butler added that Cable Bahamas "certainly will not keep our eyes closed" if the right acquisition opportunity arises, and said "some very important lessons have been learned" from the company's entry into the south Florida communications market.

"The lessons learned are that going outside your territory has some intrinsic risks, but with the right level of focus, commitment and leadership team it's really possible to do anything and produce value for shareholders," he told Tribune Business.

"It's not something that should be taken lightly. It has to be properly researched, analysed and executed in entering competitive markets such as the US."