Cablenet has forecasted its first-ever profit in 2025, predicting a profit before tax of €160,000. This is a significant jump from its previous losses before tax in the preceding years, with €2.16 million in losses in 2023 and €286,000 in 2024. 

Cablenet Communications Systems PLC is a subsidiary of GO PLC, which owns 70.61 per cent of company shares. It is a leading telecommunications company in Cyprus, offering internet, cable tv, mobile, and fixed telephone home services.  

In 2020, it became the first foreign registered company to issue and list bonds in Malta.

The company offers multiple packages of Internet, telephony, TV and Sports content as well as mobile telephony services, to its retail base (approximately 85,000 fixed and 157,000 mobile subscribers) and its corporate clients (approximately 5,026 businesses; figures as of the end of 2024).

In its financial report for 2024, Cablenet said it continued to deliver on its long-term strategic objective: “to continue on a growth trajectory path, establishing sizeable market shares in all services which can be delivered on a national basis”. 

Moreover, the CEO noted in his Annual Report review that the “…2024 results demonstrate not only a broad and consistent progress towards that goal but one that’s being achieved with ever higher or new milestones achieved.” 

In fact, Cablenet retained its significant market position in the Cypriot telecoms market as it continues to rank as the second largest broadband and TV provider (behind the incumbent operator, Cyta) whilst building its presence in mobile particularly in the post-paid space where Cablenet retained its position as the third-largest mobile operator for the third consecutive year.

During the financial year for 2024, the company registered a 3 per cent decrease in revenue to €72.1 million largely reflecting Cablenet’s strategic decision to limit the sales of mobile handsets that carry a low margin. In fact, the company’s telecommunication services revenue line continued to grow in 2024 by a further 4.3 per cent to €62.7 million largely on the back of the continued growth in the mobile segment and a constant broadband subscriber base notwithstanding the competitive pressures and the already high penetration rates in a mature telecoms Cypriot market. 

Meanwhile, revenue from the TV product offering contracted on the back of a reduction in sports content subscriptions as well as consumers cutting down on their discretionary spending.

Selling, distribution, administrative and other costs (excluding depreciation) totalled €18.6 million in 2024 (2023: €18.9 million) reflecting the strict cost control measures implemented and adhered throughout 2024 particularly with respect to staff costs (related to selling and distribution) as well as advertising and marketing expenditure which offset the adverse impact of cost inflationary pressures as well as a write-off a receivable amounting to €0.3 million. 

After accounting for the above costs and other income, the company’s EBITDA registered an 8.1 per cent increase to a record €22.8 million in 2024, from €21.1 million in 2023. The growth in EBITDA is a direct reflection of the “fruits borne out of the significant investments” undertaken in recent years with the aim of growing the business and establish Cablenet as one of largest players in the Cypriot telecoms market.

Given the further revenue growth and cost controls described above, Cablenet managed to also grow its operating profit to €3.6 million (from €1.7 million in FY2023, which represented the first ever operating profit registered by Cablenet). The growing scale of the business has allowed the company to take advantage of scale and operating leverage since a substantial part of its cost base is fixed. Net finance costs were practically unchanged at €3.9 million notwithstanding the marginal increase in borrowings.

Overall, the telecommunications company still registered a loss before tax of €0.3 million, although this is tighter than the €2.2 million pre-tax loss registered in 2023. After accounting for a tax expense of €0.3 million, the net loss for the year amounted to €0.6 million compared to a net loss of €2.3 million in 2023. 

Nonetheless, the CEO of the company noted in his Annual Report review that the next milestone in the financial performance path of Cablenet is to turn a net profit as is being forecasted for the current financial year.