BigBlu Broadband's growth driven by new customers

In a trading update, the AIM-listed alternative broadband services provider said that total revenue for the year ended 30 November had increased 25% on the prior year to approximately £55m.

Recurring revenue, which comprised roughly 94% of total revenue, increased 27% to £51m and customer numbers grew from 100,000 to 113,000 over the period.

Meanwhile, underlying EBITDA increased by 45% to £6.8m and year-end net debt stood at £14m, up from £13.1m at the same point last year.

Having met expectations for the year, BigBlu said that it entered the new year with a target of double-digit organic revenue growth for this financial year and beyond whilst maintaining its technology leadership in the sector.

“BBB is also expected to benefit from an increasing number of international satellite partnership opportunities in 2019 and will benefit from new ground-breaking products and services increasing its addressable market while simultaneously reducing the cost of customer acquisition,” said a statement from BigBlu.

BigBlu’s shares were down 1.04% at 95.50p at 0857 GMT.