Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative super-fast broadband services, announces its audited results for the year ended 30 November 2018.
The period under review represented one of continued investment in the product portfolio and consolidation of the Company's leading position within the alternative super-fast broadband industry, whilst expanding routes to market to position the Company for strong organic growth in the current financial year and beyond.
The current trading period has started positively, with the Company adding more than 3,000 net new customers organically during the first three months of the current financial year, which is already ahead of the organic growth achieved for the 12 months ended 30 November 2018.
- Total revenue increased 26.1% to £55.4m (FY 2017: £43.9m)
- Like for like revenue growth1 of 8.2%
- Adjusted EBITDA2 increased 45.7% to £6.8m (FY 2017: £4.7m)
- Net debt decreased to £11.9m as at 30 November 2018 (FY 2017: £13.2m)
- Total customers increased by 13% to c.113k at the end of the period
- Completed the stated European expansion program following the acquisitions of Open Sky s.r.l ("Open Sky") and Sat Internet Services GmbH ("Sat Internet")
- Significantly expanding BBB's operational footprint across Italy, Germany and Portugal
- Demonstrated technology leadership with Broadband Delivery UK ("BDUK")
- Awarded £2.1m grant to develop and conduct field trials for next generation 5G fixed wireless broadband services
- Connected the first BDUK 'gigafast' customers utilising new mmWave technology and newly released 60 GHz spectrum
- Signed a Commercial Agreement with the Viasat and Eutelsat European Broadband partnership ("EBB")
- Expanded our 50 Mbps services from five countries to complete European coverage during the period
- Strengthened the senior management team to support future growth with the appointment of Mark Anderson, previously a director of Sky and Fox Networks, as Chief Operating Officer
Post Period End Highlights
- Selected in December 2018 as a preferred partner ("PPP") by Eurobroadband Infrastructure ("EBI"), a subsidiary of Eutelsat (NYSE / Euronext: ETL)
- First phase of the coordinated marketing plan offering superfast satellite broadband services at download speeds of up to 50 Mbps has commenced
- Systems now deployed and live across an additional six European countries
- Quickline, a subsidiary of BBB, acquired 100% of JHCS, for a consideration of £0.3m in January 2019
1 Like-for-like organic revenue growth compares current and prior period revenue treating acquired or disposed businesses as if they had been owned for all of both periods on a constant currency basis.
2 Adjusted EBITDA represents earnings before interest, taxation, depreciation, amortisation, share based payments and other exceptional costs
Andrew Walwyn, CEO of BBB, commented:
"The Company has positioned itself at the forefront of the alternative super-fast broadband industry. Our technology agnostic approach, growing product base and expanded routes to market mean we are now one of the largest and most recognised companies in the industry. Importantly for our shareholders, we have now established a compelling value proposition for end users, whilst also commanding a strong position within the industry to attract new and exciting commercial partnerships.
"Looking forward to 2019 and beyond, we see plenty of scope to take advantage of global growth opportunities including, but not limited to, launching new super-fast satellite broadband services within the European arena, rolling-out next-generation fixed wireless networks and further growth across Australia. Importantly, sales through our industry leading partnership agreement with EBB is now gaining significant traction despite the operational issues encountered during the first half of 2018, which were outside of our control.
"The current trading period has started positively, with the Company adding more than 3,000 net new customers organically during the first three months of the current year, which is ahead of the organic growth achieved for the 12 months ended 30 November 2018.
"Given the above, the Company remains confident of growing its customer base to 150,000 by 2020, which given the largely fixed operating cost structure of the business, is expected to deliver significant earnings growth and shareholder value over the remainder of the current financial year and beyond."