Bigblu Broadband PLC (AIM:BBB) saw its shares fall 8% on Monday after a trading update showed a drop in like-for-like revenue growth to 3.1% from 15% and flat total revenue of £14.9mln for the six months to 31 May 2023, reflecting "market challenges globally", and pressure as Elon Musk's Starlink makes inroads in Australia.
Overall, the provider of alternative super-fast and ultra-fast broadband services with operations in Australia and the Nordics. as well as a residual shareholding in Quickline Communications, said trading was in line with its expectations, with progress across all its geographies and business units in the period in terms of expanding product offerings, implementing new core platform systems and a sizeable reduction in costs.
The company said its adjusted EBITDA increased by 3.2% to £2.1mln, while adjusted free cash inflow stood at £0.1mln and net debt as of 31 May 2023 was £0.3mln.
During the period, Bigblu Broadband completed the acquisition of the satellite operations of Harbour ISP PTY LTD in Australia, successfully migrating customers onto its systems.
The company said it remains optimistic about the market potential with the emergence of 5G and LEO satellite technologies and plans to counter competition by expanding its product offerings and addressing a larger market segment.
In the trading update. Bigblu Broadband CEO, Andrew Walwyn, commented: "The combination of favorable market dynamics and opportunities available to our business units provides a strong backdrop for delivering enhanced shareholder value."
Around 9.45am, BigBlu Broadband shares were 8.3% lower at 44.00p.