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Bigblu Broadband offloads 'non-core' Australian customer base for A$1.5m
Bigblu Broadband on Monday sold customers and infrastructure from its non-core subsidiary SkyMesh for A$1.5m in cash to Australian connectivity services firm Superloop Ltd.
AIM traded alternative fast broadband services provider firm Bigblu Broadband said that the disposal relates to around 11,000 fibre customers serviced under the NBNCo broadband access network, with other SkyMesh satellite and fixed wireless broadband unaffected by the change.
Andrew Walwyn, chief executive of Bigblu, said: "Bigblu's focus is on serving customers outside the fibre footprint via a variety of alternative broadband offerings including satellite, fixed wireless, 4G and 5G and we feel that that the structure of the fibre broadband market under the NBNCo scheme does not suit our focused alternative broadband business model."
The decision to dispose of the customer base stems from the fact that fibre customers contributed minimal EBITDA to the group with a profit margin contribution significantly below Bigblu's average.
Bigblu said the proceeds from the sale will be used to fund exceptional and reorganisation costs in Australia as the business is "optimised" to generate higher returns.
The funds will also be used to settle a debt with HSBC or fund future accretive bolt-on acquisitions with core potential customer bases.
Bevan Slattery, chief executive of Superloop, said: "We are excited with this transaction and looking forward to migrating these clients onto the Superloop network later this year to deliver an exceptional user experience. Importantly we also look forward to continuing our long working relationship with Bigblu Broadband and Skymesh."
The firm inherited the customer base through its acquisition of SkyMesh's satellite and fixed wireless operations in 2016.
As of 1213 BST, Bigblu Broadband plc's shares were down 2.71% at 111.88p.