Satellite internet provider to rural areas Bigblu Broadbend PLC (LON: BBB) booked improved fundamentals during the first half of 2019, with results pushing into the green and the Company expecting to narrow their net debt going forwards.
The Company’s revenues bounced 21.9% on a year-on-year comparison, up to £30.5 million. Meanwhile, their adjusted revenue jumped 56.4% to £4.3 million in a comparison of the same periods.
Bigblu debt did expand by £5.0 million to £16.90 million during H1 2019. However, between the end of H1 2018 and H1 2019, there was a £5.4 million positive turnaround in operating profit, with the Company managing to swing to positive £0.7 million by the end of the period.
The outlook for the Company’s shareholders remained mixed, but certainly improved on-year. Adjusted EPS hiked from 0.5p for H1 2018, to 2.7p for H1 2019. Losses Per Share narrowed from 12.1p to 1.2p during the same period.
Bigblu Broadband comments
Andrew Walwyn, CEO of BBB, said,
“This was another period of expansion for the Company as we successfully developed our routes to market and customer base. The combination of our technology agnostic product portfolio and strong distribution partnerships ensured that we remained at the forefront of the rapidly growing global alternative super-fast broadband industry. Importantly, given the relationships and product sets we now have in place, we are clearly demonstrating strong organic growth. As such, we are extremely excited by the recent extension of our agreement with EBI, which has performed strongly to date, and the funding now in place to accelerate Quickline’s fixed wireless network roll-out.”
“This means that we are well placed to grow our customer bases across our products and territories and benefit from increasing margins due to the improved infrastructure and proven partnerships already in place.”
“We therefore expect strong organic growth to continue for the remainder of the current financial year following the EBI extension and believe the Quickline funding will result in a significant increase in our UK fixed wireless customer base.”
“We are extremely excited by the growth opportunities ahead and expect the strong demand for our solutions to increase further as we adopt new products with faster broadband speeds and unlimited download limits whilst driving down the cost of customer acquisitions and churn during the second half of the current financial year.”
The Company’s shares rallied 2.27% or 2.35p and closed at 105.85p a share 28/08/19 15:55 BST. Numis analysts reiterated their ‘Buy’ stance on Bigblu Broadband stock.
Elsewhere in the tech sector, there were updates from; Avanti Communications Group PLC (LON: AVN), Maestrano Group (AIM: MNO), Vitec Group plc (LON: VTC), TT Electronics (LON: TTG), SDL plc (LON: SDL), Dialight Plc (LON: DIA) and Seeing Machines (LON: SEE).