28th Aug 2020 11:40
(Alliance News) - Bigblu Broadband PLC said Friday its interim loss widened as revenue fell on a reduction in customer numbers due to the Covid-19 pandemic causing installation delays.
For the six months to the end of May, the Bicester-based broadband services provider reported a pretax loss of GBP6.8 million, widened from GBP397,000 the year before, on revenue that declined by 14% to GBP25.8 million from GBP30.5 million.
The overall revenue drop was a result of delays in installations due to Covid-19-related restrictions and fluctuating foreign exchange rates within the period. In addition, the total number of customers dropped to 115,000 for the period from 119,000 the same period the year before.
The average revenue per user however, rose to GBP38.9 per month from GBP35.3 the prior year, reflecting a change in network policy by BigBlu to offer better packages to customers with increased revenue from services, installations and network support.
"Like many businesses, so far 2020 has been a very eventful year for the company. The focus during the period was very much on putting the company on an even stronger footing to execute our strategy while increasing value for shareholders. The period started with the Company refinancing its debt facilities with the funding designed to supplement our increasingly cash generative business model. While the onset of Covid-19 presented us with a number of challenges, trading during the period highlighted the resilience of our operations and scope for continued organic growth," said Chief Executive Officer Andrew Walwyn.
In early August, Bigblu announced that it would sell UK and European satellite broadband operations to Eutelsat SA for up to GBP39.3 million. The company said the disposal provides the company with the opportunity to crystallise an attractive return on invested capital and reduce net debt.
"Given the underlying dynamic across the UK and European satellite operations, we were very pleased to announce last month the agreement in principle for Eutelsat to purchase our UK and European Satellite business. The purchase is a major step in the history of the company coming off the back of five years of successfully executing our strategy of becoming a leading provider of last mile rural broadband solutions in a number of European territories," Walwyn added.
Shares in Bigblu Broadband were down 4.6% at 94.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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