Bigblu Broadband losses slashed by revenue and margin growth

(Sharecast News) - Bigblu Broadband (BBB) slashed its interim losses on Wednesday as it reported higher margins and a jump in revenue courtesy of a growing customer base.
The super-fast broadband provider said revenue came in at £30.5m for the six month period ended 31 May, which was 22.0% higher than the same period last year, while its gross profit margin of increased from 37.4% to 43.7%

Consequently, its losses before tax were slashed from £5.7m to £0.4m.

The AIM traded company's revenues grew on the back of a 5.0% increase in the number of total customers to 119,000 after a slew of new customers on the continent signed up, while average revenue per user increased by 5.8% to £43.70.

Customer average annualised churn was in line with expectations at 18.0% in the first half, which was down from the 19.2% observed in the same period of 2018, after the company invested in its customer engagement programmes.

BBB said there continued to be strong demand for alternative super-fast broadband solutions and added that it expected both churn rates and gross margins to improve throughout the remainder of the financial year.

Andrew Walwyn, chief executive of BBB, said: "We are well placed to grow our customer bases across our products and territories and benefit from increasing margins due to the improved infrastructure and proven partnerships already in place. We therefore expect strong organic growth to continue for the remainder of the current financial year following the EBI extension and believe the Quickline funding will result in a significant increase in our UK fixed wireless customer base."

Bigblu Broadband shares were up 4.35% at 108.00p at 1219 BST.