The Tribune

CABLE Bahamas last night unveiled a 2.5 per cent net income increase for 2011 to $20.483 million, as it warned that rising costs continued to "challenge" its financial performance.

Unveiling an improvement upon its 2010 bottom line of $19.991 million, the BISX-listed communications provider said revenues rose 12 per cent year-over-year from $88.863 million to $99.851 million.

However, this was more than offset by the 18.5 per cent increase in operating expenses year-over-year to $55.651 million, compared to $46.936 million in 2010.

Earnings before taxation, depreciation and amortisation were up 5 per cent at $44.2 million, compared to $41.927 million, but operating income was flat at $27.374 million compared to $27.202 million in 2010.

With dividend and preference share payments relatively flat compared to 2010, Cable Bahamas' bottom line was boosted by an almost-$700,000 reduction in interest expense.

Referring to operating expense increases, Cable Bahamas said: "The major increases were from programming, electricity, fuel and staff related expenses such as national and health insurance costs.

"Throughout the year, the company continued to fulfil its regulatory mandate of the digitisation of its cable network. The costs of this obligation and other capital expenditures collectively totalled $25.2 million. In addition to this significant investment, the Board also approved $4.3 million in ordinary dividends and $4.5 million in preferred dividends."