Gamma Communications, the leading U.K. telecommunications-services provider, has announced an impressive increase in both pretax profit and revenue during the first half of the year. The company expects its full-year earnings to meet or exceed the top end of market expectations.
During the first half, Gamma Communications saw its pretax profit rise to GBP43.5 million, up from GBP38.4 million in the same period last year. Furthermore, the company’s revenue increased to GBP256.2 million, compared to GBP234.7 million in the prior-year period. This growth was mainly driven by the success of Gamma Business and Gamma Enterprise, with Gamma Business experiencing a revenue rise of 10% to reach GBP164.8 million, and Gamma Enterprise’s revenue increasing by 9% to GBP53.0 million.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), an important measure of performance, rose by an impressive 9% to GBP56.5 million.
Looking ahead, Gamma Communications anticipates continued growth in the second half of the year. The company expects adjusted EBITDA and adjusted earnings per share (EPS) to fall within the top range of current market forecasts. Based on a consensus by analysts compiled by the company, adjusted EBITDA is estimated to be between GBP110.4 million and GBP117.2 million, with adjusted EPS projected to be between 70.0 pence and 77.0 pence.
Gamma Communications’ strong performance in the first half and its optimistic outlook for the rest of the year demonstrate its position as a leader in the telecommunications industry.