Persistent Profitability ShortfallsOngoing negative net income and EBIT margins reflect structural profitability challenges. If margins do not improve, sustained losses will deplete reserves and hinder reinvestment, making long-term viability contingent on either sizeable scale-driven margin gains or meaningful cost and pricing remediation.
Negative Return On EquityA negative ROE indicates shareholders’ capital is not generating returns, undermining incentive to provide additional equity and signaling inefficiency in capital allocation. Over months, this can constrain funding options, pressure management to restructure operations, or force dilutive financing to support growth.
Cash Flow Volatility And Residual Leverage RiskVolatile cash flows combined with remaining leverage relative to peers increases refinancing and execution risk for a capital-intensive ISP. Inconsistent cash conversion can delay fiber projects, raise service continuity risk, and amplify the impact of demand or cost shocks over the medium term.