TIDMBBB
RNS Number : 1572K
Bigblu Broadband PLC
12 December 2018
Bigblu Broadband plc
("BBB" or the "Company" or the "Group")
Trading Update
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative fast broadband services, provides a trading update for
the Full Year ended 30 November 2018.
The Board is pleased to report that trading in the period was in
line with expectations with continued improvement in the Company's
key performance indicators including strong revenue growth,
improving margins and cash flows.
-- Total revenue increased c. 25% to c. GBP55m (FY 17: GBP44m)
-- Recurring revenue(1) increased c. 27% to c. GBP51m, representing 94% of total revenue
-- Like-for-like organic revenue growth on a constant currency basis(2) of 7%
-- Continued growth of customer numbers to c. 113K (FY17: 100K)
-- Underlying EBITDA(3) increased c. 45% to GBP6.8m (FY17: GBP4.7m)
-- Net debt at c. GBP14m as at 30 November 2018 (FY17: GBP13.1m)
Outlook
During 2018, the Company achieved many of its ambitions stated
at the time of IPO including acquiring and integrating several
acquisitions, completing the upgrade of superfast broadband
technologies and unifying systems and processes across the
Group.
As highlighted in the announcement dated 6 December 2018, BBB is
also expected to benefit from an increasing number of international
satellite partnership opportunities in 2019 and will benefit from
new ground-breaking products and services increasing its
addressable market while simultaneously reducing the cost of
customer acquisition.
The Company enters 2019 rebranded as Bigblu Broadband, with a
target of double-digit organic revenue growth for this financial
year and beyond whilst maintaining its technology leadership in the
sector.
(1) Recurring revenue is defined as revenue generated from the
Group's broadband airtime and data contracts which are typically
two years or more in duration.
(2) Like-for-like organic revenue growth compares current and
prior period revenue treating acquired businesses as if they had
been owned for all of both periods on a constant currency
basis.
(3) Underlying EBITDA is before share based payments,
depreciation, intangible amortisation, acquisition and deal related
costs
Andrew Walwyn, CEO of BBB commented, "We are especially pleased
with the strong financial performance in 2018 despite our satellite
partner's delays to the roll out of products in association with
the Eutelsat/Viasat JV that was announced in December 2017. The
growth achieved during the period was underpinned by continued
customer sign up and improving ARPUs as existing customers upgraded
their tariffs.
"In addition, the acquisitions we have completed over the past
three years are now making a meaningful contribution to the bottom
line as the benefits of being part of a larger group is reflected
in their individual financial performances. Completing such a
positive year, in which there has been significant operational
change, whilst establishing our global hubs, is a real testament to
the high quality of the BBB team and represents a significant
milestone for the Company.
"We are well placed to take advantage of the considerable growth
opportunity in countries that we are already live in where we are
working alongside Viasat Europe to drive growth. Looking ahead we
will be able to further grow our geographic reach and benefit from
continued growth through existing and new agreements, as evidenced
by the partnership with Eurobroadband Infrastructure which
commenced earlier this month. As such, we now have a similar
business model to that conceived in the original JV with customers
able to subscribe to 50 Mbps satellite broadband service with
'unlimited' tariffs for a comparable price with fixed line services
for the first time.
"I believe that the market for superfast broadband solutions,
such as ours, will remain extremely buoyant over the foreseeable
future as consumers continue to demand faster and more dynamic
broadband services wherever they are located. With this positive
market backdrop and our new network partners across Europe, BBB
will focus on delivering double-digit profitable growth in
2019."
Contacts:
Bigblu Broadband plc www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Via Walbrook PR
Numis Securities (Nomad and joint Tel: +44 (0)20 7260 1000
broker)
Oliver Hardy (Corporate Advisory)
James Black / Jonathan Abbott (Corporate
Broking)
Dowgate Capital (Joint broker) Tel: +44 (0)20 3903 7715
David Poutney
James Serjeant
Walbrook PR (PR advisers) Tel: +44 (0)20 7933 8780
Paul Cornelius / Nick Rome or bigblubroadband@walbrookpr.com
About BBB
BigBlu Broadband plc (AIM: BBB), is a leading provider of
alternative broadband solutions throughout Europe and Australia.
BBB delivers a portfolio of super-fast wireless broadband products
for consumers and businesses unserved or underserved by fibre.
The Company has a significant target market with 27m customers
in Europe with speeds of under 4 Mb, and a further 1m in Australia
who have been identified as only suitable for either satellite or
fixed wireless broadband.
High levels of recurring revenue, increasing economies of scale
and Government stimulation of the alternative broadband market in
many countries provide a solid foundation for significant organic
growth as demand for alternative super-fast broadband services
increases around the world.
Acquisitive and organic growth have enabled BBB to grow rapidly
since inception in 2008 during which time the Company has completed
20 acquisitions across nine different countries. It is extremely
well positioned to continue growing as it targets customers that
are trapped in the 'digital divide' with limited fibre broadband
options.
BBB's range of solutions includes satellite, next generation
fixed wireless and 4G/5G delivering between 30 Mbps and 150 Mbps
for consumers, and up to 1 Gbps for businesses. It provides
customers ongoing services including hardware, pre and post-sale
support, installation, billing and warranties whilst offering
various tariffs depending on end user requirements.
Importantly, as its core technologies evolve, and cheaper
capacity is made available, BBB continues to offer ever-increasing
speeds and higher data throughputs to satisfy market demands for
'video-on- demand'. Its alternative broadband offerings present a
customer experience that is similar to that offered by wired
broadband and the connection can be shared in the normal way with
PCs, tablets and smart-phones via a normal wired or wireless
router.
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END
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