TIDMBBB
RNS Number : 0516R
Bigblu Broadband PLC
04 July 2022
Bigblu Broadband plc
('BBB' or the 'Company')
Trading Update for the six month period to 31 May 2022
Continued strong growth across group
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast and ultra-fast broadband services, is
pleased to provide a trading update for the six-month period ending
31 May 2022 (the "Period").
There was demonstrable progress across all the Company's
geographies and business units in the period. Growth in Australia
remains strong, there has been encouraging early progress in New
Zealand, and in the Nordics the focus was on the introduction of
new products following completion of the upgrade program last
financial year. The Company is therefore well positioned for the
second half of the year.
Financial Highlights - Continuing Operations
-- Total revenue increased 13.8% to GBP14.9m (1H21: GBP13.1m).
-- Like for like revenue growth(1) on a constant currency basis was 15.1% (1H21: 15.6%).
-- Adjusted EBITDA(2) increased 1.4% to GBP2.0m (1H21: GBP2.0m).
-- Adjusted Operating cash inflow(5) of GBP1.3m (1H21: inflow GBP1.3m).
-- Adjusted Free cash inflow(5) of GBP0.4m (1H21: inflow GBP0.3m).
-- Net cash(6) at 31 May 2022 was GBP4.5m (1H21: GBP4.1m) after
repayment of debt in full and the return of capital to shareholders
in the last financial year
Operational Highlights - Continuing Operations
-- Total customers at Period end were 60.4k (1H21: 58.3k). As
previously announced, one of our Satellite network partners with
customers in Ukraine was targeted by a cyber event. This event
impacted c.3k of the Company's Norwegian satellite customers. With
the support of our network partner the cyber event is now
materially resolved, although we lost approximately 0.5k customers
as a result.
-- In February 2021, the Company's Australian business, SkyMesh,
signed a Partner Agreement with leading next-generation Asia
Pacific broadband satellite operator, Kacific Broadband Satellites
Group to provide a high-speed broadband internet service initially
across New Zealand. We are pleased to report we are now live and
connecting customers in this important market.
-- The acquisition of customers and certain business assets of
Clear Networks (Pty) Ltd ("Clear") in Australia was completed in
January 2022. Clear is an Australian ISP based in Melbourne
offering a suite of NBNCo broadband products, as well as a private
fixed wireless network serving primarily the greater Melbourne
area. This acquisition has helped the company strengthen its
presence in this area as SkyMesh looks to grow its presence across
Australia bringing with it 2.2k customers (3k connections).
-- The distribution agreement Bigblu Norge recently entered with
Telenor to provide next generation ultrafast broadband via wireless
5G, delivering speeds up to 500 Mbps with unlimited data packages,
although running six months behind due to equipment shortages, is
beginning to show real momentum and growing traction in the market
with great customer satisfaction being reported.
Quickline deferred consideration and rolled equity update
In June 2021, the Company completed the disposal of its majority
holding in Quickline to Northleaf for a total cash consideration of
up to GBP41.2m of which up to GBP10.1m was deferred contingent
consideration subject to certain performance conditions ("PC")
being met by March 22, extended to May 22 under certain
circumstances, as follows; PC1, to build 100 gigabit capable 5G
masts passing 60,000 homes; and PC2, to secure over GBP10m of new
subsidies.
As previously disclosed, Quickline has faced challenges in
securing 5G equipment reflecting the global supply issues affecting
microchips and associated delays in the commercial launch of
stand-alone 5G services which has impacted the timing of 5G being
approved by the DCMS as a gigabit capable service. As a result, in
the performance period, Quickline was only able to build 41 new FWA
masts and only able to secure GBP2.6m of additional subsidies. This
has resulted in zero deferred consideration being receivable.
More positively, supply issues have started to reduce and both
5G and FTTP build programmes are now accelerating, supported by a
headcount of over 100 and Quickline is still targeting to pass
500,000 premises as per the original business plan. Northleaf
continues to be a great partner having provided significant
additional capital to support the SFBB contracts and accelerate the
deployment of hybrid 5G and FTTP infrastructure. The Company
retains a 5.08% stake in this rapidly growing and well-financed
alternative network operator.
1 Like for like (LFL) revenue treats acquired businesses as if
they were owned for the same period across both the current and
prior year and adjusts for constant currency and business disposed
of in the period are excluded from the calculation.
2 Adjusted EBITDA is stated before interest, taxation,
depreciation, amortisation, share based payments and exceptional
items. It also excludes property lease costs which, under IFRS 16,
are replaced by depreciation and interest charges.
3 Adjusted PAT represents adjusted EBITDA less interest,
taxation, depreciation, and amortisation.
4 Adjusted EPS is adjusted PAT divided by the weighted average
number of shares over the period.
5 Adjusted Operating cash flow relates to the amount of cash
generated from the Group's operating activities and is calculated
as follows: Profit/(Loss) before Tax adjusted for Depreciation,
Amortisation, Share Based Payments and adjusting for changes in
Working Capital and non-cash items. Adjusted Free cash flow being
cash (used)/generated by the Group after investment in capital
expenditure, servicing of debt and payment of taxes. Both excludes
exceptional items.
6 Cash / Net debt excludes lease-related liabilities of GBP0.9m
of under IFRS 16 (FY21 GBP4.2m).
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc,
commented:
" We are pleased with the continued progress shown by the Group
in the Period, and the efforts we have made to improve our offering
in the Nordic region provides us with optimism that this region can
return to growth. In addition, our Australian business continues to
perform strongly.
The Board's focus will be on continuing to ensure it can
maximise shareholder value from its continuing operations.
Overall, the Company continues to trade in line with
expectations and, with extensive experience in the sector and a
proven track record of building attractive businesses to deliver
shareholder value, the Board remains confident in its ability to
ensure it can continue to deliver attractive returns for
shareholders from its operations in Australasia and the
Nordics."
For further information:
Bigblu Broadband Group PLC www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Tel: +44 (0)20 7220
Frank Waters, Chief Financial Officer 0500
finnCap (Nomad and Broker) Tel: +44 (0)20 7220
Marc Milmo / Simon Hicks / Charlie Beeson 0500
(Corporate Finance)
Tim Redfern / Richard Chambers (ECM)
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB.L), is a leading provider of
alternative superfast and ultrafast broadband solutions throughout
Australasia and the Nordics. BBB delivers a portfolio of superfast
and ultrafast wireless broadband products for consumers and
businesses unserved or underserved by fibre.
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 ultrafast broadband services
increases around the world.
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. BBB provides
customers a full range of services including hardware supply,
installation, pre- and post-sale support, billings and collections,
whilst offering appropriate tariffs depending on each end user's
requirements.
Importantly, as its core technologies evolve, and more
affordable capacity is made available, BBB continues to offer
ever-increasing speeds and higher data throughputs to satisfy
market demands for broadband and broadband services. BBB's
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.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
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END
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