Arqiva “makes excellent progress”
February 26, 2018
Arqiva, one of the UK’s leading communications infrastructure and media services providers with significant investments in essential communications infrastructure, has published its results for the half year to December 31st 2017.
- Revenue on a like-for-like basis is up 5 per cent, demonstrating excellent progress in 700MHz spectrum clearance, DAB radio rollout and smart-metering
- This growth, together with progress in ongoing efforts to increase operating efficiency, led to an increase in EBITDA of 11 per cent
- Resultant cash inflow from operations of £259 million is up 19.4 per cent against the prior year
Revenue in the period was up 3.4 per cent to £482 million from £466.3 million in the same period last year. Revenue on a like-for-like basis, which accounts for last year’s WiFi business disposal, increased 5 per cent.
- Revenue in Terrestrial Broadcast business grew 7 per cent to £239.4 million from £223.8 million in the same period last year. This performance was driven in part by the 700 MHz spectrum clearance programme which is paving the way for 5G communications in the UK, and also by DAB radio rollout.
- Revenue in Telecoms & M2M business grew 4.4 per cent to £174.7 million from £167.4 million in the same period last year. Revenue growth on a like-for-like basis in the Telecoms & M2M business was 9.1 per cent. This was driven by increased revenue from our telecoms towers business and the smart energy metering contract.
- Revenue in our Satellite and Media business decreased 9.6 per cent to £67.9 million from £75.1 million in the same period last year. This was a result of Arqiva exiting low-margin contracts and is also partly due to the negative impact of foreign exchange movements.
EBITDA, a key measure of the Group’s financial performance, increased 11 per cent during the period to £256.1 million (1H 2017: £230.7m). This strong performance can be attributed in part to an improvement in gross profit as a result of the revenue increase and shift in product mix, as well as improved operating efficiency and effective management cost-control through our FutureFit programme.
Net Cash inflow from operating activities during the period was £259.6 million, up 19.4 per cent from £217.4 million in the same period last year. Net capital expenditure during the period was £85.4 million, up 10.1 per cent from £77.6 million in the same period last year
Simon Beresford-Wylie, Chief Executive of Arqiva, commented: “These results show that Arqiva continues to make excellent progress. We are a highly Operating Cash-generative business and our strong operating performance indicates improved efficiency across the entire Group. The strength of our financial performance reflects our vital role in delivering the technology that will ensure Britain’s digital future. From the delivery of new TV content to the clearance of the airwaves over which 5G will come to life, and the overall increasing demand for connectivity over the airwaves, we are a key enabler of a coming change. These results give us greater courage than ever in our convictions and we look forward to a strong second half across all of these areas.”