StockMarketWire.com - Bigblu Broadband slashed losses on the back of increased half-yearly revenues and margin growth.

For the six months ended 31 May 2019, pre-tax losses narrowed to £397,000 from £5.7m a year earlier as revenues by 21.9% to £30.5m, driven by an increase in organic new connections, improving average revenue per user and the impact of the acquisitions made last year.

Average revenue per user increased by 5.8% for the half to £43.70 per month from £41.32 a year earlier.

Gross profit increased to £13.3m from £9.4m a year earlier, representing an improved gross profit margin to 43.7% from 37.4%.

The company said it expected to deliver 'strong cash generation from the business in the second half of the financial year, which together with secured funding for Quickline, will significantly decrease net debt by the period end.'

'We anticipate net debt to fall to less than 1.5x EBITDA by the year end,' it added.




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