BigBlu Broadband shares rally as acquisitions fuel earnings growth
, the AIM listed alternative broadband services provider, saw shares rise 5% after a trading update.
It reported revenues increasing 21.5% to £30.5 million, and like-for-like organic revenue growth of 12% compared to 8.2% for the six-month period ending 31 May 2019.
It saw underlying EBITDA increase 54% to £4.3 million, on the back gross margins increasing to 43.7%, up from 37.4% after improved product mixes and network support, the company said.
Shares in BigBlu Broadband were trading 5% higher at 115p by midday
The company reported that total customers increased 7% during the period, and that it expects its partnership with Eutelsat to accelerate customer connections during the second half of the year.
Andrew Walwyn, CEO of BBB said: “The trading period was underpinned by our compelling product portfolio, improving retention rates and increased data demands from both existing and new customers.”
"We have just completed our most successful ever quarter for new customer sign ups and I believe we will see further customer growth in the second half of the year as consumers continue to demand faster and more dynamic broadband services wherever they're located.”
He concluded that the company remains confident it will meet market expectations for the current year and retain its target of 150,000 customers by December 2020.
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