Bigblu Broadband Share Discussion Threads

[weatherman] 23/2/2023 19:27

Up 10% at one time today - more than 3p up by the end of the day - recovering well.

[weatherman] 23/2/2023 07:53

More director buying.

[weatherman] 21/2/2023 17:08

Recovering after NED buys more.

[97peter] 08/2/2023 11:42

The latest acquisition news, plus long term predictions and news from from CEO - Andrew is just what we needed and I am happy now to stay and build back my holding.,

[97peter] 09/12/2022 14:08

We need some better news, plans and forecasts from Andy the CEO and the BoD, before all of the PI’s sell up! I hav3 over 400,000 shares but sadly I am getting rid of around20,000 a day as not impressed by lack of communications to shareholders! PlusAndy needs todo a Mello Monday session very soon!!!

[weatherman] 05/12/2022 08:15

Another acquisition - and this statement. "In addition, the Board also continues to explore all options to realise value for BBB shareholders from SkyMesh, which could include a potential ASX listing of SkyMesh."

[dogwalker] 04/7/2022 18:51

It's 3/4's the size it should be : £30m rather than £40m. Puts all the other annual improvements into a different, & trivial, perspective. Who cares whether revenue increased by 13.8% when you've just lost £10million!

[weatherman] 04/7/2022 09:01

Yes, no payout - sadly. Still good value imo, annualised EBITA of over £4m, and mkt cap of £30m. Plus new venture in NZ, growth in Oz and Nordics, net cash of £4.5m, and still 5% holding of Quickline.

[dogwalker] 04/7/2022 07:50

Is the deferred payment - £10m - lost for good now? Seems odd if it is. It would have been in Quickline's best interest to go slow deliberately in order to avoid having to pay it.

[weatherman] 04/7/2022 07:41

No payout then - but still ongoing business is showing growth, and low rating.

[weatherman] 01/6/2022 15:28

Simon Thompson suggests £5m pay out now from Quickline - should get news of this soon after 31 May 22 deadline has ended. "The Group received GBP31.1 million in cash on completion, with up to a further GBP10.1 million payable as deferred contingent consideration that is subject to certain performance conditions being met by no later than 31 March 2022, or in certain circumstances, 31 May 2022."

[value hound] 21/3/2022 17:21

Tipped by Simon T (I have a small holding FWIW):

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It’s not often that you can buy into a fast-growing technology business on five times annual operating profits, but that’s what’s on offer at Aim-traded BigBlu Broadband (BBB: 58p), a provider of alternative superfast satellite, fixed wireless and 4G/5G broadband products.

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Following the sale of its stake in Quickline (‘Targeting sky high returns, 31 August 2021), a business that is building fixed wireless access (FWA) networks to address the ‘digital divide’ in the UK, and a subsequent £26.1mn cash return (45p a share), BigBlu retains £7.6mn of loans and equity in Quickline, and net cash of £5.2mn. House broker finnCap estimates the £33.8mn market capitalised group is likely to receive £5mn of deferred cash consideration in the coming months, too. Admittedly, the forecast cash earn-out is less than the maximum of £10.1mn at the time of the disposal, the reason being the global shortage of microchips impacted the supply of 5G radio equipment and the milestones.

Effectively, BigBlu’s remaining businesses in Australia and Norway are in the price for £16mn even though they increased operating profit by 15 per cent to £3.2mn on revenue of £27.1mn in the 2021 financial year. It’s a valuation anomaly worth exploiting.

BigBlu’s growth underrated

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11 per cent growth in cash profit (Ebitda) to £4.6mn, or 6 per cent ahead of expectations
Adjusted free cash flow of £2.1mn
Strong organic growth in customer base in Australia
Regional expansion into New Zealand
Nordic business restructured and now generating underlying growth
BigBlu’s focus is on two international businesses: SkyMesh, an Australian satellite broadband provider that targets customers in rural areas outside of the fibre footprint; and a Nordic satellite and FWA broadband business that has been restructured and plans to expand into Sweden and Finland.

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In the 2021 financial year, SkyMesh’s cash profits surged by 43 per cent to £4mn on 31 per cent higher revenue of £21.8mn, buoyed by 3,700 new customer additions (to 49,700). Skymesh continues to secure a 50 per cent share of new satellite additions under the Australian government’s NBNCo scheme, and is seeing growing interest for its premium Sky Muster Plus product. This helped boost average revenue per user by 15 per cent to A$70 per month.

Moreover, the partnership in New Zealand with Asia Pacific broadband satellite operator Kacific signed its first customers in December 2021, and the post period end acquisition of Melbourne-based ISP Clear Networks adds 2,200 subscribers for a maximum consideration of A$2.9mn (£1.6mn), or six times trailing cash profit. House broker finnCap expects SkyMesh to deliver 13 per cent revenue growth, which supports a divisional cash profit forecast of £4.4mn and free cash flow above £3m.


Importantly, the Nordic business has been successfully restructured. Dismounting 100 lossmaking masts cut the user base by 4,000 customers, but this was mitigated by a network upgrade programme to 55 towers which increased internet speeds to 100 Mbps and helped add 2,000 new profitable customers.

Bigblu Norge has also entered a distribution agreement with Telenor to provide ultrafast broadband via wireless 5G, offering speeds up to 500 Mbps with unlimited data packages. Equipment shortages mean the roll-out is six months behind schedule, but it’s still growing. One fly in the ointment is last month’s cybersecurity attack on Viasat, the provider of BigBlu’s satellite capacity in the Nordics. Although the Nordics’ satellite customer base is likely to churn as a consequence, finnCap still expect the Nordics unit to deliver 5 per cent growth in cash profit to £2mn this year.

My sum-of-the-parts valuation of £58mn (100p a share) values BigBlu’s operational businesses at £40mn, or the equivalent of 10.5 times 2023 operating profit estimates. Buy.

[paulisi] 21/3/2022 09:00

Reasonable set of results for what is now a very small company.

[weatherman] 17/12/2021 07:25

Another company raising funds, showing some confidence in the sector.

[dogwalker] 01/12/2021 18:48

Now down at the monthly low of March last year.
Must be due a Trading Update any day now?
A positive one would be good : could ping us back up the way towards £1.

[kadvfn1] 26/11/2021 08:52

Think it's dropping because of today market sentiment in regards to a potential new variant coming out of Africa. Ftse down over 3% off the starting block

[cravencottage] 26/11/2021 08:44

Anybody have any clues why share price is dropping?

This is either the bargain of the century or somethings up?

[weatherman] 22/10/2021 20:50

They still have an interest in Quickline, and targetted performance pay-out.

[weatherman] 22/10/2021 20:46

It might have been tipped again today - can't find any though.

[p1nkfish] 22/10/2021 15:05

Very possible and going ivee Australia, Norwich there is chance of a growing business etc. There is some decent potential.

[shaker44] 22/10/2021 14:55

Is that why it's up 13% today??

[p1nkfish] 18/10/2021 16:02

Some might find its way back into the stock.