Bigblu Broadband (BBB) on Thursday told investors in a trading update it has improved its key performance indicators and that trading for the year is in line with expectations.
The alternative fast broadband provider said its key indicators; customer additions, revenue growth, ARPU's and EBITDA margins were all seeing ‘continued improvement’.
Bigblu also said it saw strong underlying organic growth in satellite broadband customers under the EBI partnership throughout the year.
Bigblu rationalised about 13,000 non-competitive network using customers during the year, bringing, which offset growth in total customer numbers which were 110,000 at year-end, compared to 113,000 in 2018.
Shares in Bigblu were trading 2.28% lower at 107p during Thursday morning
Andrew Walwyn, CEO of BBB, commented: "We are delighted with the continued strong performance across all of our key metrics with increasing levels of organic revenue highlighting the growing maturity of our business model and our ability to deliver increasing returns.”
He added: "Importantly, we are now generating high levels of recurring revenue as we move towards profitability and continue to be a market leader in a rapidly growing sector with strong markers for increases in demand and spend from existing and new customers.”
“Given our proven model, the strong market dynamics and technology advances, we believe that Bigblu represents a favourable customer choice against traditional alternative solutions and remains extremely well placed to take advantage of growth opportunities in the sector in 2020 and beyond, and therefore we are confident with market expectations for revenue and EBITDA.”
Bigblue said the quality of its customer base improved significantly, benefiting from growing ARPU and margin improvements.
Net Debt was higher than expectations at approximately £14.2 million vs £16.9m at the half year, which management said reflected some ‘short-term timing issues and some exceptional costs associated with the legacy Viasat agreement’.
Bigblu told investors it was confident that underlying net debt will reduce significantly in the short term.
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