Gigas Hosting presented to BME Growth Markets its financial results for the first quarter of the year, in which Net income increased by 12.3% to 16.58 million Euros, compared to 14.76 million in the first quarter of the previous year. Likewise, it has managed to increase this figure by 5% compared to the earnings of the previous quarter (15.79 million euros).
Similarly, Gigas closed the first quarter of 2023 with an adjusted EBITDA of EUR 3.84 million, up 15.5% from EUR 3.33 million in the same period last year and exceeding (2.7%) its budget of EUR 3.74 million.
Following the September 2022 acquisition of TPartner, a unified communications and cloud switchboard (UCaaS) provider, the group’s leverage at the end of Q1 2023 stood at 1.92 times Net Financial Debt to EBITDA annual The coffers are expected to be 9.90 million euros in the budget.
He Gross Margin Reached 9.88 Million Euros in these first three months of the year are much higher than 8.40 million in the same period last year, representing a relative increase of 17.6%. Gross margin in the period was 59.6% of revenue amount, up from 56.9% a year earlier and slightly better than the budgeted 59.1%, primarily due to a reduction in certain management costs of telecom services.
Personnel costs increased to $3.15 million, derived from the addition of TPartner personnel, the strengthening of the management team and new incorporations for business operations, resulting in lower costs than budgeted.
Other structural costs totaled 2.88 million euros, an increase of 24.9% compared to the same period last year, which was also derived from purchases made in the last four months of 2022.
The company’s maintenance CAPEX reached 0.45 million euros in the first three months of 2023, accounting for 2.7% of revenue, versus 4.9% of the budget, partly due to savings and partly due to temporary movements. The total CAPEX incurred in this period, including development CAPEX and maintenance CAPEX, amounted to 1.60 million Euros, representing 19.5% (8.2 million Euros) of the total CAPEX budget for the year. The growth investments made have primarily focused on the acquisition of equipment for customer installations and investments in cloud platforms and data storage.
Similarly, the focus has been on promoting Gigas. Sales across all geographies and businesses Where it operates Cloud and cyber security sector growth reached 41% year-on-year (6.43 million euros in the first quarter of 2023, compared to 4.56 million in the same quarter last year), which was partly driven by incorporation was received from TParner’s for the company perimeter. Without the impact of the inclusion of TPartner, the growth of the said sector reached 10.3% in the quarter compared to the revenues of Cloud and Cyber Security in the fourth quarter of 2022 (5.82 million euros), confirming the acceleration of organic growth. ,
Finally, the Group has completed the process of migration and regularization of the portfolio of business telecommunications customers in Spain acquired in 2021, which means a drop in the final price to be paid for said portfolio, but also an impact on revenue Is kept. The figure, which resulted in a modest year-on-year (-2.7%) decrease in telecom revenue “was more than offset by strong growth in the cloud and cyber security portion (41%),” they allege from Gigas. “However, they have managed to achieve greater synergies and renegotiate wholesale contracts, which have increased gross margins and allowed budgeted EBITDA to improve”.
“In addition to the organic growth shown, the company continues to evaluate potential corporate operations that allow it to grow the business, strengthen its leadership in the Iberian Peninsula and grow in Europe,” he concludes from Gigas.