Half Year 2024 Gamma Communications PLC Earnings Call Transcript
Key Points
- Gamma Communications PLC (FRA:6GC) reported a 10% revenue growth to GBP282.5 million for the first half of 2024.
- The company achieved a milestone of 1 million cloud seats in the UK, adding 48,000 new cloud seats in the first half of the year.
- Adjusted EBITDA increased by 10% to GBP62.2 million, and adjusted EPS grew by 16% to 42.5p.
- Gamma Communications PLC (FRA:6GC) continues to invest in its new portal, which will streamline operations and enhance customer experience.
- The company remains highly cash-generative, with GBP142.9 million in the bank and a 100% cash conversion rate.
- Revenue in Europe declined by 3% in sterling terms, although it remained flat in euros.
- The company faces challenges in explaining its increasingly complex business model to stakeholders.
- There is pressure on gross profit margins due to the shift towards partnering with large tech companies like Cisco.
- The PSTN switch-off in the UK has been delayed to 2027, affecting the anticipated timeline for related revenue growth.
- Gamma Communications PLC (FRA:6GC) has not completed its GBP35 million share buyback program, citing liquidity issues and strategic considerations.
Good morning, everybody, and thank you very much for joining us in our new home at Deutsche Numis, and thank you very much indeed to Deutsche for hosting us this morning. I think everybody in the room pretty much knows I'm Andrew Belshaw, but I'm Gamma's Chief Executive, and this is our first half results for 2024.
We've had a really good set of results that I'll come on to and talk about in a minute. Usual format, I will just kind of give you some highlights. Bill will come and run through the numbers for you. Then I'll talk a little bit more about strategy and some of the trends that we've been seeing over the first half of this year. And that's not going to be a massive pivot; that's really a continuation of what we've been seeing over the last year or two. Then we'll talk about ESG very briefly. I'll talk about where we think Gamma is going to be going over the next year or two and then we'll leave some time for Q&A. So hopefully Bill and I will take maybe about 30, 35 minutes, and then we can allow
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