BigAir exceeds its revenue forecasts

In an ASX announcement BigAir Group directors said the company's revenues increased by 1132 percent in the full year ending June 30 2006, with consolidating revenue of $6.9 million.

The comparison between the pro forma full year ending 30 June 2005 and the full year ending June 30 2006 shows strong growth and improving EBITDA.

Sales revenue was up by 112 percent from $3.2 million in 30 June 2005 to $6.9 million in 30 June 2006 and the EBITDA loss improved by 15 percent from $1.25 million to $1.07 million, during the same period.

The EBITDA loss as a percentage of revenue was reduced from 39 percent in 2004-05 to just 15 percent in 2005-06, despite a large increase in operating costs relating to the company's recent transition to a listed company on the ASX, and the successful integration of a number of acquisitions made during the year.

According to the directors a major component of the revenue growth was related to the acquisition of the Veritel Wireless business in 1 July 2005.

“The Veritel business unit revenues were included in the prospectus in the Pro forma consolidated Full Year revenues for 2004-05,” they stated in the ASX announcement.

BigAir's scale and service capabilities have also increased, with subscriber numbers increasing by 150 percent during the year, to around 10,000 as at July 2006.