BigAir boosts profits and brings broadband to student hostels

Stuart Corner
Monday, 20 February 2012 15:44

IT Industry - Listed Tech

Broadband wireless access network operator, BigAir (ASX: BGL) has more than doubled its NPAT for the six months to 31 December 2011, to $1.97m, and has set its sights a major player providing Internet access to the tertiary student accommodation sector.

It attributed the result to "The successful integration of recently-acquired businesses, and a continued focus on organic growth initiatives." Revenue was up 115 percent to $10.97m (1H11: $5.10m) and EBITDA up 161 percent to $4.57m (1H11: $1.75m).

BigAir's acquired a competing broadband wireless network operator, Clever Communications, in February 2011 and has since integrated that business into its business fixed wireless division. It also acquired AccessPlus - a provider of outsourced managed Internet services for the tertiary student accommodation market - in January 2011 and that has been integrated into the company's community broadband business

BigAir's community broadband division specialises in providing Internet access services to tertiary student accommodation premises. Its revenue has more than doubled from $0.83m in 1H11 to $2.56m in 1H12 and EBITDA has almost tripled, to $0.56m.

The division now serves some 20,000 students across 50 sites and is one of the largest customers of BigAir's fixed wireless division (however several of its major sites are still backhauled by other providers).

CEO Jason Ashton said that the integration of these businesses had been progressing as planned, and had delivered significant synergistic benefits. The company expects to extract a further $0.4m of synergies in the second half of 2012.