Mike Arnold • 14 Comments
Fri, Jun. 17, 5:34 PM
Fri, Jun. 17, 4:42 PM
- "Additional fiber investment should help improve growth trajectory of the wireline business and could make Cincinnati Bell (CBB +7.2%) a more attractive acquisition candidate for a larger telecom or cable company in the medium-to-long term, once the company further reduces leverage," wrote Gabelli's Sergey Dluzhevsky in an upbeat note today.
- He considers telcos looking to add "fiber-rich wireline properties," such as Frontier and Consolidated Communications, as potential acquirers. P-E firms and "communications groups comfortable owning both cable and telecom assets" are also mentioned.
- Dluzhevsky expects CBB to unload its remaining stake in data center owner CyrusOne over the next 12 months, and use the funds to pay down debt. He also forecasts the availability of CBB's Fioptics fiber service within its territory will rise to 65%+ by the end of 2017 from a current 57%, and considers the company's IT services business another growth driver. "Our private market value (PMV) estimate for Cincinnati Bell is $4.65 per share in 2017, growing to $6.85 per share in 2020 (with interest in CyrusOne marked to model)."
- Shares jumped to new 52-week highs today. They're up 20% YTD.
Thu, Feb. 18, 11:25 AM
- Cincinnati Bell (NYSE:CBB) has dipped 9.3% today following a Q4 report where revenues that fell 2% still beat expectations.
- Revenues in its Entertainment and Communications segment that were flat for the quarter still grew annually for the second straight year. Full-year EBITDA was $302M, above an expected $293.3M.
- Revenue by segment: Entertainment and Communications, $187.8M (flat); IT Services and Hardware, $104.5M (down 5%).
- Proceeds from monetizing the company's investment in CyrusOne came to $644M during the year, after the company monetized 1.4M common shares in Q4 for $48M in cash.
- Its remaining investment in CyrusOne, about 9.5%, is valued about $250M.
- It's guiding to 2016 revenues of $1.2B, and adjusted EBITDA of $297M-$309M.
- Press Release
Dec. 14, 2015, 5:15 PM
- Cincinnati Bell (CBB -3.7%) has closed a secondary offering of its stock in CyrusOne (CONE -1%), for net proceeds of about $47.6M.
- The company offered 1.35M shares. After the offering, Cincinnati Bell maintains about a 9.5% stake in the data center operator through common and exchangeable shares.
- CyrusOne has been gradually buying its way out of its relationship with Cincinnati Bell through a number of transactions.
Dec. 8, 2015, 4:26 PM
- Cincinnati Bell (CBB +4.2%) plans a sale of 1.35M shares of CyrusOne (NASDAQ:CONE) in a public offering to close Dec. 14.
- With CONE at $36, that comes to just under $50M before expenses. Cincinnati Bell says it plans to use proceeds for general purposes.
- The move should leave Cincinnati Bell with about a 9.5% stake in CyrusOne via common shares and its stake in exchangeable units of CyrusOne's limited partnership.
- Cincinnati Bell has been steadily divesting the partnership, with CyrusOne buying out parts of it earlier this year.
Nov. 4, 2015, 2:16 PM
- Cincinnati Bell (NYSE:CBB) has dipped 6.3% after Q3 results where the company beat expectations, though costs rose in its Entertainment & Communications segment and revenues slipped for IT Services and Hardware.
- Revenue overall was down 0.5%, but rose slightly after excluding revenue from services provided to the discontinued wireless business. Income from continuing operations of $79M got a $118M boost from the sale of 6M CyrusOne partnership units.
- Revenue by segment: Entertainment & Communications, $185.4M (up 1%); IT Services and Hardware, $117M (down 3%).
- The company's Fioptics video and Internet net activations both increased more than 30%. It added 21,000 new video subscribers Y/Y (ending with 108,800) and 10,800 Internet subscribers (ending with 281,300).
- It reiterated full-year guidance for revenue of $1.1B (vs. consensus of $1.137B) and EBITDA of $297M (above an expected $291.3M).
Jul. 30, 2015, 11:05 AM
- Cincinnati Bell (NYSE:CBB) is down 1.9% this morning after results that were largely in line considering the effects of its continuing divestment of its partnership with CyrusOne.
- Net income of $191.6M (including income from discontinued operations) was up 68%. The company took a $295M gain on the sale of 14M partnership units in CyrusOne. Adjusted EBITDA of $75M beat an expected $73.4M.
- Revenue by segment: Entertainment and Communications, $182.4M (down 1%); IT Services and Hardware, $106.3M (up 5%).
- Total voice lines declined to 535,600 from Q1's 537,400 and a year-ago 562,300. Of those, business voice lines did increase to 309,900 from Q1's 306,900. Internet subscribers increased to 275,100 (142,700 DSL, 132,400 Fioptics) from Q1's 272,700 and a year-ago 270,300.
- The company reaffirmed full-year guidance of $1.1B in revenues (light of consensus expectations of $1.14B) and adjusted EBITDA of $297M, plus or minus 2% (vs. an expected $295.1M).
Sep. 25, 2014, 11:07 AM
Jun. 17, 2014, 4:53 PM
- CyrusOne (CONE) has filed to sell 12.5M shares through a public offering. Underwriters have a 1.875M-share overallotment option. (prospectus)
- The data center owner plans to use the proceeds to buy back an equal number of LP interests from parent Cincinnati Bell (CBB).
- At current levels, CBB would reap proceeds of $281M.
May 8, 2014, 12:48 PM
Dec. 31, 2013, 5:40 PM
Oct. 15, 2013, 5:39 PM
Aug. 14, 2013, 9:56 AM
- Cree (CREE -20.3%) has been cut to Neutral by Northland, Susquehanna, and D.A. Davidson following its FQ4 revenue miss and soft FQ1 guidance.
- Millennial Media (MM -15.8%) has been cut to Neutral by Canaccord and Northland after posting a Q2 revenue miss, announcing it's buying rival Jumptap, and providing pro forma full-year guidance for the two companies.
- Sina (SINA +1%) has received a two-notch upgrade to Buy from Citi in response to Monday's Q2 beat and strong Q3 guidance.
- UMC (UMC -1%) has been cut to Sell by Goldman.
- Cincinnati Bell (CBB +1.6%) has been upgraded to Neutral by BofA.
- Proofpoint (PFPT +1.3%) has been started at Outperform by Imperial Capital.
May 29, 2013, 1:28 PMU.S. telcos are having a rough day. A general selloff in high-yield stocks could be a factor, but not all of the decliners pay huge dividends (if any). VZ -2.9%. WIN -2.7%. CTL -2.4%. CBB -2.5%. CBEY -4.7%. TWTC -2.1%. TDS -2.6%. SHEN -7.4%. Volatile Latin American carrier NII Holdings (NIHD -7.2%) is also selling off. | May 29, 2013, 1:28 PM | 5 Comments
Feb. 27, 2013, 3:57 PM
Poor 2013 guidance has led Cincinnati Bell (CBB -21.3%) to crumble to new 52-week lows following its Q4 report. Data center subsidiary CyrusOne (CONE -2.9%), which CBB still owns 71.6% of following a Jan. IPO, is posting more modest losses in response to its own report. Excluding Cyrus One, CBB expects 2013 revenue of $1.2B, below a $1.24B consensus. On its earnings call, the telco admitted its wireless ops face "intense competitive pressures from the national players," and that it's becoming harder to offset subscriber losses with cost cuts.| Feb. 27, 2013, 3:57 PM
Feb. 27, 2013, 12:55 PM