Bigblu Broadband shares were down 3.8% to 50p in early morning trading on Monday, after the group reported a total revenue climb of 13.8% in HY1 2022 to £14.9 million compared to £13.1 million in HY1 2021.
The telecommunications firm announced a like-for-like revenue growth on a constant currency basis of 15.1% against 15.6% year-on-year, along with an adjusted EBITDA rise of 1.4% to £2 million from £2 million.
Bigblu Broadband mentioned an adjusted operating cash inflow of £1.3 million, remaining flat since the last year, alongside an adjusted free cash inflow of £400,000 against £300,000.
The company highlighted net cash of £4.5 million on 31 May 2022 from £4.1 million the year before, following the repayment of its debt in full and the return of capital to shareholders in the last financial term.
The firm noted a selection of operational high points, including a rise in total customers to 60,400 compared to 58,300 in the previous year, however it lost 500 customers as a result of a targeted cyber attack on its partnered operations in Ukraine.
Bigblu Broadband further mentioned its Australian business Skymesh had signed a partner agreement with Asia-Pacific broadband satellite operator Kacific Broadband Satellites Group to facilitate high-speed broadband internet service across the region, starting with New Zealand.
The group reported a slate of new customer acquisitions via its purchase of certain assets of Clear Networks in Australia in January 2022, strengthening its Australian presence.
The company also noted its recent distribution agreement with Telenor to provide broadband via wireless 5G delivering speeds up to 500 Mbps, however the operation was confirmed to be running six months behind schedule due to equipment shortages.
Bigblue Broadband reported some problems with its Quickline disposal to Northleaf for a cash consideration of up to £41.2 million, with up to £10.1 million in deferred payment contingent on several performance conditions being met by 22 May 2022.
The transaction included the agreement in PC1, to build 100 gigabit capable 5G masts passing 60,000 homes, and PC2, to secure over £10 million in subsidies.
Quickline said it had experienced supply chain difficulties, with the subsequent backlog resulting in only 41 new FWA masts and £2.6 million in new subsidies, which meant Bigblue Broadband received no deferred consideration from the agreement.
“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,” said Bigblue Broadband CEO Andrew Walwyn.
“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.”