REG - Bigblu Broadband PLC - Trading Update

Bigblu BroadbandAnnouncement

04/07/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220704:nRSD0516Ra&default-theme=true

RNS Number : 0516R  Bigblu Broadband PLC  04 July 2022

 

Bigblu Broadband plc

('BBB' or the 'Company')

 

Trading Update for the six month period to 31 May 2022

 

Continued strong growth across group

 

Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative
super-fast and ultra-fast broadband services, is pleased to provide a trading
update for the six-month period ending 31 May 2022 (the "Period").

 

There was demonstrable progress across all the Company's geographies and
business units in the period. Growth in Australia remains strong, there has
been encouraging early progress in New Zealand, and in the Nordics the focus
was on the introduction of new products following completion of the upgrade
program last financial year. The Company is therefore well positioned for the
second half of the year.

 

Financial Highlights - Continuing Operations

·       Total revenue increased 13.8% to £14.9m (1H21: £13.1m).

·       Like for like revenue growth(1) on a constant currency basis
was 15.1% (1H21: 15.6%).

·       Adjusted EBITDA(2) increased 1.4% to £2.0m (1H21: £2.0m).

·       Adjusted Operating cash inflow(5) of £1.3m (1H21: inflow
£1.3m).

·       Adjusted Free cash inflow(5) of £0.4m (1H21: inflow £0.3m).

·       Net cash(6) at 31 May 2022 was £4.5m (1H21: £4.1m) after
repayment of debt in full and the return of capital to shareholders in the
last financial year

 

Operational Highlights - Continuing Operations

·     Total customers at Period end were 60.4k (1H21: 58.3k). As
previously announced, one of our Satellite network partners with customers in
Ukraine was targeted by a cyber event. This event impacted c.3k of the
Company's Norwegian satellite customers. With the support of our network
partner the cyber event is now materially resolved, although we lost
approximately 0.5k customers as a result.

·     In February 2021, the Company's Australian business, SkyMesh,
signed a Partner Agreement with leading next-generation Asia Pacific broadband
satellite operator, Kacific Broadband Satellites Group to provide a high-speed
broadband internet service initially across New Zealand. We are pleased to
report we are now live and connecting customers in this important market.

·     The acquisition of customers and certain business assets of Clear
Networks (Pty) Ltd ("Clear") in Australia was completed in January 2022. Clear
is an Australian ISP based in Melbourne offering a suite of NBNCo broadband
products, as well as a private fixed wireless network serving primarily the
greater Melbourne area. This acquisition has helped the company strengthen its
presence in this area as SkyMesh looks to grow its presence across Australia
bringing with it 2.2k customers (3k connections).

·    The distribution agreement Bigblu Norge recently entered with Telenor
to provide next generation ultrafast broadband via wireless 5G, delivering
speeds up to 500 Mbps with unlimited data packages, although running six
months behind due to equipment shortages, is beginning to show real momentum
and growing traction in the market with great customer satisfaction being
reported.

Quickline deferred consideration and rolled equity update

 

In June 2021, the Company completed the disposal of its majority holding in
Quickline to Northleaf for a total cash consideration of up to £41.2m of
which up to £10.1m was deferred contingent consideration subject to certain
performance conditions ("PC") being met by March 22, extended to May 22 under
certain circumstances, as follows;  PC1, to build 100 gigabit capable 5G
masts passing 60,000 homes; and PC2, to secure over £10m of new subsidies.

 

As previously disclosed, Quickline has faced challenges in securing 5G
equipment reflecting the global supply issues affecting microchips and
associated delays in the commercial launch of stand-alone 5G services which
has impacted the timing of 5G being approved by the DCMS as a gigabit capable
service. As a result, in the performance period, Quickline was only able to
build 41 new FWA masts and only able to secure £2.6m of additional subsidies.
This has resulted in zero deferred consideration being receivable.

 

More positively, supply issues have started to reduce and both 5G and FTTP
build programmes are now accelerating, supported by a headcount of over 100
and Quickline is still targeting to pass 500,000 premises as per the original
business plan.  Northleaf continues to be a great partner having provided
significant additional capital to support the SFBB contracts and accelerate
the deployment of hybrid 5G and FTTP infrastructure. The Company retains a
5.08% stake in this rapidly growing and well-financed alternative network
operator.

 

 

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 PAT represents adjusted EBITDA less interest, taxation,
depreciation, and amortisation.

4 Adjusted EPS is adjusted PAT divided by the weighted average number of
shares over the period.

5 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. Adjusted Free
cash flow being cash (used)/generated by the Group after investment in capital
expenditure, servicing of debt and payment of taxes. Both excludes exceptional
items.

6 Cash / Net debt excludes lease-related liabilities of £0.9m of under IFRS
16 (FY21 £4.2m).

 

Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc, commented:

 

" 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.

 

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."

 

For further information:

 

 Bigblu Broadband Group PLC                                      www.bbb-plc.com (http://www.bbb-plc.com)
 Andrew Walwyn, Chief Executive Officer                           Tel: +44 (0)20 7220 0500

 Frank Waters, Chief Financial Officer

 finnCap (Nomad and Broker)                                      Tel: +44 (0)20 7220 0500

 Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

 Tim Redfern / Richard Chambers (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 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 delivering between 30 Mbps and 150 Mbps for consumers, and up to 1
Gbps for businesses. BBB provides customers 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 and broadband services.
BBB's alternative broadband offerings present a customer experience that is
similar to that offered by wired broadband and the connection can be shared in
the normal way with PCs, tablets and smart phones via a normal wired or
wireless router.

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFVLDFILIIF