Bigblu Broadband plc (LON:BBB) Is About To Turn The Corner

We feel now is a pretty good time to analyse Bigblu Broadband plc's (LON:BBB) business as it appears the company may be on the cusp of a considerable accomplishment. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in the United Kingdom, Europe, Australia, and internationally. With the latest financial year loss of UK£8.0m and a trailing-twelve-month loss of UK£14m, the UK£50m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Bigblu Broadband will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Bigblu Broadband

Expectations from some of the British Telecom analysts is that Bigblu Broadband is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of UK£30m in 2020. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 38% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Bigblu Broadband given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Bigblu Broadband currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Bigblu Broadband to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bigblu Broadband's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Bigblu Broadband worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bigblu Broadband is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bigblu Broadband’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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