Cablenet Communications Systems plc has reported a weaker-than-expected financial performance for 2025.

In May 2025, the company had forecast a profit before tax of €160,000. However, newly published financial statements show that Cablenet instead recorded a pre-tax loss of €4.2 million, marking a substantial deviation from expectations.

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.

Net loss for the year for Cablenet stood at €3.39 million, compared to €0.6 million in 2024.

This marks a clear break from the projections in the company’s 2024 report and subsequent Financial Analysis Summary, which had pointed to improving operating performance and a near-term return to profitability.

Total revenue fell by 3.3 per cent to €69.7 million in 2025, down from €72.1 million the previous year.

The decline was attributed to:

• Reduced sports broadcasting-related revenue following changes to content agreements
• Lower handset sales as the company deliberately limited low-margin device financing

However, this masked continued growth in Cablenet’s core telecommunications services, particularly in mobile.

The company expanded its mobile subscriber base to around 171,000 users, up from 157,000 in 2024, driven by its 5G rollout.

Despite growth in key segments, profitability was impacted by rising costs linked to network expansion and operations.

EBITDA declined by 16.4 per cent to €19.1 million, while operating profit dropped from €3.6 million in 2024 to €0.2 million in 2025.

The company cited:

• Higher operating and capital expenditure linked to 5G rollout
• Increased RAN sharing and service costs
• Lower contribution from sports broadcasting

Finance costs also rose to €4.5 million.

One of the most notable developments is the deterioration in Cablenet’s financial position.

By the end of 2025, the company reported negative equity of €3.0 million, compared to positive equity of €0.4 million a year earlier.

Cablenet’s long-term strategy remains centred on scaling its mobile business and expanding fibre infrastructure, with continued investment in 5G and network coverage.

While these initiatives are driving subscriber growth and supporting long-term positioning, they are also compressing margins in the short term.

The company acknowledged that growth in mobile – a lower-margin segment compared to fixed services – is likely to continue diluting overall profitability metrics.

While Cablenet had previously expected to turn profitable in 2025, this milestone has now been delayed. Management now expects improvements in 2026, with a return to profitability projected for 2027, assuming no adverse developments.