TIDMBBB
RNS Number : 5586B
Bigblu Broadband PLC
05 June 2023
Bigblu Broadband plc
('BBB' or the 'Company')
Trading Update for the six month period to 31 May 2023
Trading in line with expectations
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast and ultra-fast broadband services, announces
its trading update for the six months period ending 31 May 2023
(the "Period"). The Company has operations in Australia, the
Nordics and a residual shareholding in Quickline Communications
("Quickline").
There was progress across all the Company's geographies and
business units in the period in terms of expanding the product
offerings, implementing new core platform systems and a sizeable
reduction in costs, recognising market challenges globally. The
Company is therefore well positioned for the second half of the
year.
Financial Highlights
-- Total revenue was GBP14.9m (1H22: GBP14.9m).
-- Like for like revenue growth(1) on a constant currency basis
was 3.1% (1H22: growth 15.1%).
-- Adjusted EBITDA(2) increased 3.2% to GBP2.1m (1H22: GBP2.0m).
-- Adjusted Free cash inflow(3) of GBP0.1m (1H22: inflow GBP0.4m)
-- Net debt (4) as at 31 May 2023 was GBP0.3m (1H22: Net Cash
GBP4.5m) after payments for the acquisition of the satellite
operations of Harbour (GBP2.7m) in February 2023, the deferred and
earn out consideration payments on the acquisition of Clear
(GBP0.4m), together with planned redundancy payments in Norway and
Central.
Operational Highlights
-- In February 2023, the Company's fully owned Australian
business, SkyMesh PTY LTD completed the acquisition of the
satellite operations of Harbour ISP PTY LTD, a subsidiary of Uniti
Group LTD in Australia (the "Acquisition") that brought with it
c.5.7k customers, before base adjustment. This base has been fully
migrated onto Skymesh systems and first billings commenced in May
2023, thereby completing the transfer.
-- Total customers at period end were 62.6k (1H22: 60.4k)
including the Acquisition. During the period there was net churn in
customers of 1.2k due to further demounting in the Nordics and base
management on transfer of the Clear and Unity acquisitions.
-- The emergence of 5G and LEO satellite technologies is
expected to lead to accelerated uptake of non-fibre broadband
internet services in Australia. Starlink has continued to progress
in our market with strong promotional offers which continue to
impact on current churn rates, and we are monitoring such promotion
and marketing activity. We believe we can counter such threats to
the business by expanding the product offerings as well as an
addressable market. In this regard and working with our network
partners c25% of the base has been transferred to new product
offerings with NBN Co, and although early, we are seeing far higher
customer satisfaction and reduced churn. Further acquisitions and
new product opportunities are also emerging as SkyMesh heads into
2H23 with its product offerings likely to offer faster speeds /
capacity, leading to increases in customer numbers and customer
satisfaction.
-- In the period and recognising global challenges, the Company has pro-actively undertaken a reorganisation of our Norwegian business and reduced the central costs within the business. This has resulted in redundancies in our Norway business, reducing the workforce by approximately 30%, with an annualised cost saving of c.GBP0.4m, and further savings from our UK head office, resulting in approximately 75% of the central team being made redundant, with annualised savings of cGBP0.5m.
-- In Norway we completed the planned separation of the business
into two legal entities, recognising the different attributes of
each being our satellite and 5G technology business, typically
lower capex, and our infrastructure business, typically higher
capex. Following the launch of new FWA 5G products and the new
satellite offerings, we are showing early signs of stabilising,
although the business remains cash consumptive.
-- Quickline continues to be well supported by Northleaf, who
acquired the majority of Quickline in June 2021, and at the half
year can address over 350,000 premises with its hybrid FWA and
fibre infrastructure. The Company retains a 4% stake holding after
Northleaf investment of GBP70m.
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 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 and excludes items identified as
exceptional in nature. Adjusted Free cash flow being cash
(used)/generated by the Group after investment in capital
expenditure, servicing of debt and payment of taxes and excludes
items identified as exceptional in nature.
4 Cash / Net debt excludes lease-related liabilities of GBP0.7m
of under IFRS 16 (FY22 GBP0.9m).
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc,
commented:
"The overall performance of the Group is in line with the
Board's expectations. We remain focused on realising value for
shareholders. Whilst doing so, we are extending our product
offerings with our partners in each region, thereby substantially
increasing our addressable markets, at the same time implemented
new systems in each territory and cut central headcount / other
costs by cGBP0.9m.
We have reorganised our Norwegian business, and our Australian
business has completed another important bolt on acquisition. We
continue to develop products and solutions with our network
partners that will enable customers to operate as effectively as
possible, particularly at a time where increasing numbers of
customers are likely to be working from home, whether full time or
part time.
The Board remains focused on maximising value and returns for
shareholders. The combination of favorable market dynamics and
opportunities available to our business units provides a strong
backdrop for delivering enhanced shareholder value."
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 / Harriet Ward (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 typically 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 FWA delivering between 30 Mbps and 500Mbps
for consumers, and up to 1 Gbps for businesses. BBB provides
customers with 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 services. BBB's alternative broadband
offerings present a customer experience that is broadly similar to
that offered by wired broadband and the connection can be shared in
the normal way with PCs, tablets and smart phones.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFTMFTMTBMBLJ
(END) Dow Jones Newswires
June 05, 2023 02:00 ET (06:00 GMT)
Bigblu Broadband (LSE:BBB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bigblu Broadband (LSE:BBB)
Historical Stock Chart
From Apr 2023 to Apr 2024
