Gamma Communications shares rise 7.5% after 1H results

Gamma Communications shares rise 7.5% after 1H results

Gamma Communications plc (GAM) shares rose by 7.5% following the release of its unaudited results for the six months ended 30 June 2025. The company reported strong growth driven by its German operations, with double-digit revenue growth achieved through strategic acquisitions and organic growth. Historical context from past earnings events suggests that GAM’s stock has shown notable short-term volatility after such announcements, with positive reactions observed in recent quarters.

Revenue for the period was £316.6 million, a 12% increase from £282.5 million in the same period last year. Gross profit rose by 18% to £172.0 million, while gross margin improved to 54%. Adjusted EBITDA increased by 14% to £70.9 million, and adjusted earnings per share (EPS) increased by 13% to 47.9 pence [1].

Key highlights included the successful completion of the share buyback of £45.1 million, following the £27.3 million buyback in 2024. The company also reported a significant increase in total Cloud seats, growing by 587,000 to 1.8 million since June 2024. The full Cisco Collaboration suite is now available across Germany, the UK, and Spain, with 28,000 users at the end of June, a 75% increase from the previous period.

Andrew Belshaw, Chief Executive Officer, commented, "Gamma has achieved another strong set of results. Our German business, bolstered by our recent acquisitions (Starface and Placetel), has performed particularly strongly, while the performance in the UK has been resilient in spite of a continuing challenging macro-economic backdrop for SMEs."

For the full year ending 31 December 2025, the Board expects Adjusted EBITDA to be in line with current market expectations, with Adjusted EPS slightly ahead. Looking further forward, the company expects continued strong growth in Germany and in the UK, where growth initiatives and cost reductions are being implemented to offset near-term challenges.

Gamma Communications is listed on the Main Market of the London Stock Exchange and operates in the UK, Germany, Spain, and the Benelux region.



References:
[1] https://www.investegate.co.uk/announcement/rns/gamma-communications--gama/half-year-report/9095019