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(Alliance News) - Gamma Communications PLC on Tuesday reported increased earnings in the first half of 2021, as global acquisitions boosted growth for the London-based cloud services provider.
Revenue climbed 23% to GBP217.4 million in the six months to June 30, from GBP177.3 million a year prior. Pretax profit grew 24% to GBP32.4 million from GBP26.2 million.
In March, Gamma acquired a 100% stake in Mission Labs Ltd for GBP40.2 million, with up to an additional GBP6.0 million deferred consideration payable over the next three years.
It bought Spanish telephony services provider ozTelecom Oigaa360 SA in back in April 2020 for around EUR25.3 million and German cloud and communications company HFO Holdings AG in July 2020 for EUR20.4 million.
Gamma noted that its European business revenue multiplied in the first-half of 2021, making GBP35.4 million compared to GBP10.6m last year. It cited inorganic growth from its Spain and Germany acquisitions as the main driver.
Shares were down 7.5% at 2,160.00 pence in London on Tuesday morning.
"We have begun to successfully knit together our desired Western European footprint and as part of a structured group operating model and growth strategy, we are working with our local management teams to both further enable and accelerate our long-term Cloud PBX growth across Europe," said Chief Executive Andrew Taylor.
Cloud PBX stands for private branch exchange and is a business phone system hosted by off-site servers and powered over the internet. Gamma's cloud PBX product is called Horizon and had 638,000 users at June 30, up 8% from December 31.
Gamma declared an interim dividend of 4.4 pence, up 13% from 3.9 pence in 2020.
"Notwithstanding the possibility of future "lockdowns" across Europe, our long-term outlook is positive and in addition to executing against our longer-term strategic commitments, we will continue to focus on delivering a high level of service," added Taylor.
By Josie O'Brien; josieobrien@alliancenews.com
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