The soon-to-list BigAir Group IPO may attract even more interest having announced following half year revenue results that reflected increased revenues from acquisitions.

The December 31 half resulted in a revenue increase of 1321 per cent taking the wireless operator/reseller to $2.9 million in the Half Year ended December 31 2005. Gross Profit increased by 799 per cent from $93,398 to $839,701 over the prior half, but the start-up reported an overall EBITDA loss of $363,344.

However, this includes $218,318 in customer acquisition costs which would typically be capitalised and amortised over the expected duration of the customer’s contract. The company has adopted a more conservative accounting approach which expenses these costs each month.
The EBITDA loss reduced by 59 per cent over the prior corresponding period for the combined BigAir and Veritel businesses. If the customer acquisition costs are excluded the improvement is 84 per cent claims the company.
During the half BigAir acquired Veritel Wireless and also acquired Ozemail’s iBurst customer base while on its own network it doubled the footprint adding Western Sydney as part of an ongoing network expansion program.

Jason Ashton, CEO of BigAir said the customer acquisitions program was hampered due to the company’s decision to delay its IPO which had been scheduled for last December. Money from the float was earmarked for sales and marketing and although the delay has meant slower growth than hoped, Ahston said the listing was ready to go as soon as the ASX gives it the go ahead.

“As we roll out our high-speed wireless infrastructure into the other capital cities, we will be offering Internet Service Provider’s and Carriers a cost-effective alternative network for providing last mile access to their customers.

“This last mile network is suitable for both high-speed data and Voice over IP (VOIP) and is fast becoming an attractive alternative to copper given the significant uncertainty surrounding ULL pricing.”