Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative fast broadband services, provides a trading update for the Full Year ended 30 November 2018.
The Board is pleased to report that trading in the period was in line with expectations with continued improvement in the Company's key performance indicators including strong revenue growth, improving margins and cash flows.
- Total revenue increased c. 25% to c. £55m (FY 17: £44m)
- Recurring revenue1 increased c. 27% to c. £51m, representing 94% of total revenue
- Like-for-like organic revenue growth on a constant currency basis2 of 7%
- Continued growth of customer numbers to c. 113K (FY17: 100K)
- Underlying EBITDA3 increased c. 45% to £6.8m (FY17: £4.7m)
- Net debt at c. £14m as at 30 November 2018 (FY17: £13.1m)
During 2018, the Company achieved many of its ambitions stated at the time of IPO including acquiring and integrating several acquisitions, completing the upgrade of superfast broadband technologies and unifying systems and processes across the Group.
As highlighted in the announcement dated 6 December 2018, BBB is also expected to benefit from an increasing number of international satellite partnership opportunities in 2019 and will benefit from new ground-breaking products and services increasing its addressable market while simultaneously reducing the cost of customer acquisition.
The Company enters 2019 rebranded as Bigblu Broadband, with a target of double-digit organic revenue growth for this financial year and beyond whilst maintaining its technology leadership in the sector.
1 Recurring revenue is defined as revenue generated from the Group's broadband airtime and data contracts which are typically two years or more in duration.
2 Like-for-like organic revenue growth compares current and prior period revenue treating acquired businesses as if they had been owned for all of both periods on a constant currency basis.
3 Underlying EBITDA is before share based payments, depreciation, intangible amortisation, acquisition and deal related costs
Andrew Walwyn, CEO of BBB commented, "We are especially pleased with the strong financial performance in 2018 despite our satellite partner's delays to the roll out of products in association with the Eutelsat/Viasat JV that was announced in December 2017. The growth achieved during the period was underpinned by continued customer sign up and improving ARPUs as existing customers upgraded their tariffs.
"In addition, the acquisitions we have completed over the past three years are now making a meaningful contribution to the bottom line as the benefits of being part of a larger group is reflected in their individual financial performances. Completing such a positive year, in which there has been significant operational change, whilst establishing our global hubs, is a real testament to the high quality of the BBB team and represents a significant milestone for the Company.
"We are well placed to take advantage of the considerable growth opportunity in countries that we are already live in where we are working alongside Viasat Europe to drive growth. Looking ahead we will be able to further grow our geographic reach and benefit from continued growth through existing and new agreements, as evidenced by the partnership with Eurobroadband Infrastructure which commenced earlier this month. As such, we now have a similar business model to that conceived in the original JV with customers able to subscribe to 50 Mbps satellite broadband service with 'unlimited' tariffs for a comparable price with fixed line services for the first time.
"I believe that the market for superfast broadband solutions, such as ours, will remain extremely buoyant over the foreseeable future as consumers continue to demand faster and more dynamic broadband services wherever they are located. With this positive market backdrop and our new network partners across Europe, BBB will focus on delivering double-digit profitable growth in 2019."