Gamma Communications plc (Grupo Gamma LON: GAMA), a leading provider of Unified Communications as a Service (“UCaaS” in English) in the business markets of the United Kingdom and Europe, and Gamma Comunicaciones, the Group’s subsidiary in Spain, have announced unaudited results for the six months ended June, and gross profit increased by 9% to £256.2m and £131.2m, respectively (H1 2022: £234.7m and £120.4m, respectively); remaining gross margin and adjusted EBITDA increased by 9% to 56.5 million pounds (1st half of 2022: 51.9 million pounds). Additionally, adjusted earnings per share (fully diluted) for the year rose 5% to 37.5p (H1 2022: 35.6p).
Gamma Group continued to perform positively in the first six months of the year, achieving good gross profit growth, impacting both Adjusted EBITDA and Adjusted Profit Before Tax (PBT), and resulting in strong cash flow. Generation. Following positive results in the first half, growth is expected to continue in the second half, with adjusted EBITDA and earnings per share expected to be in the upper half of market expectations. The “Semi-Annual Report” is available in Gamma portal
Note that the European operations (Germany, the Netherlands, and Spain) recorded gross profit growth of 17% to £19.0 million (H1 2022: £16.2 million). In addition, the group highlights the growth of the product range that enables voice activation in Microsoft Teams, with Operator Connect and MS Teams Direct Routing, as well as other third-party voice applications. Specifically in Spain, Gamma Comunicaciones introduced Operator Connect for Microsoft Teams last April, a service through which companies using the Microsoft suite can quickly add telephony functions through the Microsoft administrator portal, allowing users to make calls and receive calls via the app in Teams.
“We continue to achieve good financial growth, and our expanded product range is well received by both distribution partners and corporate customers. Outside the UK, we have worked hard to improve the underlying performance of our European businesses and have made significant progress. We experienced excellent cash conversion during the period, and the strength of Gamma’s balance sheet has enabled us to further expand our capabilities, whether through product development or acquisitions. We recently expanded our offerings into the adjacent area of managed cybersecurity through the acquisition of Satisnet. We continue to view mergers and acquisitions as a way to complement our organic growth and capabilities. “Our resilient business model allows us to look to the future with confidence.”
explains the commercial plans for the opening of new service points, clearly betting on a close and close service for the SME customer, which, in addition to a very specialized and professional customer service, allows Gamma to stand out from other operators: “ From a commercial point of view From a perspective and to continue our expansion plan in Spain, in the first half of the year we opened two new service points in Madrid, one in Seville, one in Extremadura, and another in the Canary Islands, making a total of 17 gamma service points distributed throughout the national territory and close to our customers. In addition, in recent weeks, an agreement has been concluded for the imminent opening of a new service point that will cover the provinces of Granada, Córdoba, and Jaén, as well as another in Zaragoza. This, together with the opening of two other points during the next semester, will complete our Gamma presence strategy throughout the national territory. It is essential for SMEs to always have a close and professional service point that advises and supports them in the process of digitizing their communication.”
The range compiled by the company is based on known estimates from sell-side analysts. The ranges are adjusted EBITDA of £110.4m to £117.2m and adjusted earnings per share (fully diluted) of 70.0p to 77.0p.
