Cloud expansion continues as Big Air reports revenue and earnings growth
- 26 August, 2016 15:19
Jason Ashton - CEO, BigAir
BigAir (ASX:BGL), has recorded another year of strong revenue and earnings growth, reporting an underlying net profit after tax (NPAT) of $9 million for the 12 months ending June 30.
ASX records report a seven per cent increase from the $8.46 million the company achieved in 2015, with underlying EBITDA rising 18 per cent to $22.3 million and group revenue and other income up 27 per cent to $80.7 million.
BigAir managing director, Jason Ashton, said the growth in revenue and earnings over the financial year marks its ongoing expansion into Cloud and managed services, along with its continued organic growth into existing broadband and fixed wireless divisions.
“Our solution is unique in the marketplace, combining our advanced and highly flexible infrastructure solutions along with our own private Cloud and managed service offerings," he said.
"This has underpinned our growth strategy and enabled us to deliver a ninth straight year of record financial results."
BigAir’s fixed wireless revenue was up six per cent to $25.1 million, and underlying EBITDA up 16 per cent to $16 million, with Ashton attributing the finalisation of a number of consolidated activities as the reason for a reduction in operating costs and an expansion of overall group EBITDA margins.
The company said management focus for FY17 will be on driving the addition of new mid-market customers while continuing to improve margins.
Looking ahead, it also plans to continue investing in fixed wireless network and CMS expansion driven by new contract wins; community broadband driven by ongoing market expansion; enhancement of its CyberHound software platform; and meeting data retention compliance obligations.
It added that its strategic acquisitions and successful integrations over the past five years helped drive long-term earnings growth – first by scaling up its fixed wireless and student accommodation platforms, and more recently adding new capabilities to extend BigAir’s service offering to new customers and into new market segments.
“Our acquisition strategy remains focused on identifying complementary services and customers with a strong fit with our target customer segment (medium enterprise)," he added.
"CyberHound provides BigAir with deep cybersecurity and cybersafety solutions along with a behavioural analytics platform.”
According to Ashton, as with other acquisitions, this broadens the company’s customer base to cross-sell complimentary BigAir services.
“As the market continues to consolidate and our larger competitors come under increasing competitive pressure, we will continue to find ways to differentiate our bundled solutions and focus on specific vertical segments so that we can continue to enjoy profitable growth and above average margins,” he added.
At the time of publication, BigAir’s shares were trading at $0.72.