BigAir full year numbers for FY11 (BGL)

BigAir confirmed earlier guidance by releasing preliminary full-year numbers.

With revenue of $15.5m, BigAir’s EBITDA of $5.4m (up 69%) exceeded guidance of $5.2M with operating cashflow of $5m up 72%.  BGL’s balance sheet is rock solid, with no debt, $2.8m cash, and more integration synergies to follow.  Another important figure to note is annualised EBITDA run rate for July 2011 – because telco services bill regularly, this is a indicative “floor” for the company’s revenue next year.  July’s annualised EBITDA run rate has already grown to $9m, compared with March’s figure of $7.5m – and I expect this increase is a combination of new services and operational synergies increasing margins.

No doubt these new figures will reinvigorate speculation of a dividend for FY12 – a 1c dividend would cost about $1.6M, comfortably funded by current cashflow, but maybe offset by BigAir’s desire to light up Canberra and Wollongong, thereby covering the 10 largest cities in Australia.

Other news is BGL’s student accommodation internet business, which benefits from low connection cost and flexible contract terms – great for users who may only want to connect for a few months.  This business unit is to be re-branded “BigAir Community Broadband”, and BGL are also looking to translate this into the mining accommodation sector, another area which has a large base of short-term customers.

Aside from these new growth avenues BigAir can continue to rely on their core Wimax access business to continue scoring runs and EBITDA growth.  With a current revenue base of $23m against FY11 actual revenue of $15.5m, BGL can expect another cracking year simply by sitting still.  With organic growth, increased penetration into the student market, and the new national opportunities available with Canberra network coverage, BGL are set up for a great FY12.