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Gamma Increases Revenues By 11%

Bob Falconer

Gamma has announced its audited results for the year ended 31 December 2016 this week which show revenues increased by over 11%.

Key highlights include:
oThe number of installed SIP Trunks increased from 360,000 at 31 December 2015 to 511,000 at 31 December 2016 (a gain of +42%)
oThe number of Cloud PBX users increased from 142,000 to 230,000 (+62%)
oGross profit from indirect business increased from £64.1m to £78.2m (+22%)
oThe number of Channel Partners grew from 834 to 970 (+16%)
oGross profit up from £18.2m to £20.6m (+13%)
oNew customers include a large financial institution, Reed, OCS, City Electrical Factors, Nandos, and St John Ambulance
oGood progress in the public sector, key wins include Your Housing Group, AQA and a number of NHS Trusts
•Gamma’s new mobile service launched in both the indirect and direct channel

Bob Falconer, Chief Executive Officer, commented “2016 has been a year of significant progress at Gamma. We have seen no let up in the demand for our strategic products of SIP Trunking and Cloud PBX, whilst being particularly encouraged by the growing contribution from our data services following the investments we made to extend our network reach. Bringing a Full MVNO into service in 2016 was a major engineering achievement, and, whilst it is still early days for our new mobile service, it positions the business well for the future as we develop more converged fixed and mobile services. We are pleased with the growth in the number of channel partners choosing to use our services and we continue to make significant marketing and other investments to help our partners grow their business with us.

The Gamma direct business remains focussed on the larger, more complex opportunities, and we were successful in agreeing a significant SIP Trunking contract with a large financial institution and to provide full voice, data and mobile services to companies such as Strutt & Parker and CEF. The public sector has also grown significantly, with particular success with NHS Trusts, educational establishments and government departments such as the Department of Communities and Local Government for whom we are providing mobile services.”

Years ended 31 December
2016 2015 Change (%)
Revenue £213.5m £191.8m 11.30%
Gross Profit £98.8m £82.3m 20.00%
Gross margin 46.30% 42.90%
EBITDA* £31.3m £29.9m 4.70%
Adjusted EBITDA £34.2m £28.3m 20.80%