Gamma Communications announced on Wednesday that it had a successful first half of the year, with all business segments contributing to improved earnings. The company's recurring revenue model, combined with price increases, helped to offset inflationary pressures. Additionally, Gamma Communications experienced growth across all segments, resulting in healthy adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth compared to the previous year.
The company has reiterated its full-year guidance and expects its adjusted EBITDA and adjusted earnings per share (EPS) for the year to fall within the range of market forecasts. According to consensus provided by the company, adjusted EBITDA is projected to be between GBP110.4 million and GBP117.2 million ($141.0 million to $149.7 million), while adjusted EPS is expected to range from 70.0 pence to 77.0 pence.
Despite acknowledging that macro challenges exist, Chief Executive Andrew Belshaw expressed confidence in the resilience of communication services throughout economic cycles. He stated that Gamma Communications enters the second half of the year with optimism.
The company's shares were down 1.3% at 1,096.0 pence as of 0812 GMT.