The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas top executive yesterday said it “doesn’t anticipate” a repeat of Sunday afternoon’s National Football League (NFL) blackout that has sparked a regulatory inquiry.

Franklyn Butler, the BISX-listed communications provider’s executive vice-chairman, president and chief executive, apologised to customers for the impaired service after multiple complaints were submitted to the Utilities Regulation and Competition Authority (URCA).

“We apologise for the inconvenience caused to our customers,” he told Tribune Business. “We don’t anticipate this to continue in the future. We will do all we can to co-operate with URCA’s investigation.”

Mr Butler declined to explain what had caused the NFL blackout, but added: “I think it was three or four channels we had the issues with. The 1pm and 4.30pm games were impacted, but by the 8pm game we had resolved the issue. If we do have any channel restrictions, like we do get from time to time, we will notify our customers in advance.”

The NFL blackout, and volume of complaints from Cable Bahamas customers, prompted URCA to disclose that it is investigating the episode. “URCA is aware of Cable Bahamas customers having National Football League games blocked on certain channels on Sunday,” the regulator said in a statement.

“Consumers have a reasonable expectation that their service should not be intentionally disrupted without notice, and service providers have an obligation to inform their customers on changes to service ahead of time.

“Many consumers have filed complaints about the matter. URCA is making its own inquiries into what transpired to gain an understanding of what occurred and will update the public in due course if necessary.”

Wayne Munroe, minister of national security, who was among those impacted alleged that the blackout stemmed from TV programming rights issues. “I gather that BTC bought the right to the games, to play it on the network, and Cable didn’t,” he added.

Mr Butler, writing in Cable Bahamas’ recently-released annual report, said the company had “successfully defended our customer base despite a global shift in consumer preferences, evidenced by a 4 percent decrease in TV connections as more people move towards streaming services. Nevertheless, the average revenue from each fixed business customer has remained stable, showcasing our resilience in a changing market”.

Cable Bahamas is also targeting a 5 percent improvement in its cost margin over the next three years as it bids to counter multiple operational expenses increases. “A primary focus and ongoing challenge for us has been the annual increases in operational costs across various categories such as electricity, insurance, fuel and more,” he conceded.

“In response to this, we have committed to a thorough re-engineering of our processes. Our aim is to achieve greater streamlining and efficiency, thereby reducing waste and avoidable costs. This strategic approach is not just about cost-cutting; it’s about smart cost management that aligns with our broader business objectives.

“By targeting a 5 percent increase in our cost margin over the next three years, we are setting a clear, measurable goal. This target reflects our dedication to continuously improving our operational efficiency, which is crucial for maintaining a competitive advantage and ensuring sustainable growth,” Mr Butler continued.

“Our efforts in transforming our cost base and boosting productivity are integral to our long-term financial health and our ability to deliver value to our customers and shareholders alike.” Mr Butler acknowledged that adjusted free cash flow for the year to end-June 2023 was slightly lower when set against 2022 comparatives, but added that this was due to the ongoing investment in the FTTH roll-out.

“Our adjusted free cash flow (FCF) for financial year 2023 was $22m, slightly lower compared to $25.8m in financial year 2022,” Mr Butler said. “However, the decline in free cash flows this year is primarily due to our strategic decision to invest heavily in ALIVFibr in New Providence.”