Cincinnati Bell profits down on acquisition costs, sees EBITDA growth in 2018

Cincinnati Bell reported revenues of USD 1.289 billion for 2017, up 9 percent from a year earlier thanks to its takeover of OnX late in the year. Adjusted EBITDA was down slightly to USD 303 million from USD 305 million, but met the company's amended guidance. Net profit dropped to USD 35 million from USD 102 million in 2016, after a loss in Q4 on increased operating and financing costs for acquisitions. 

For 2018, the group targets revenue of USD 1.200-1.275 billion and adjusted EBITDA of USD 320-330 million. The lower revenue is due to new accounting standards on equipment revenue recognition; without this, revenue would be over USD 1.7 billion. Furthermore, the forecast does not include the pending takeover of Hawaiian Telcom. The operator said it received support for Telcom's shareholders for the deal but is still waiting for all the regulatory clearances to complete the takeover. 

Free cash flow totaled USD 28 million for the full year 2017, an increase of USD 141 million year-over-year. Capital expenditures were reduced to USD 210 million from 286 million in 2016, and the company expects the amount flat to lower in 2018, at USD 190-210 million.