Gamma Communications Shares Move Negative In Big Intraday Swing

Gamma Communications plc (LON:GAMA) has announced unaudited results for the six months ended 30 June 2025, showcasing double-digit growth fueled by a strong performance in Germany. The company anticipates full-year Adjusted EBITDA to align with market expectations, with Adjusted EPS projected to be slightly ahead.

The Gamma share price initially jumped as high as 1,186 early, before fading, and making more than a 14% intraday swing to a new low at 981p. 

Revenue increased by 12% to £316.6 million, up from £282.5 million in the first half of 2024. Gross profit saw an even more significant jump, rising 18% to £172.0 million. Adjusted EBITDA climbed 14% to £70.9 million. Adjusted EPS also rose impressively by 13% to 47.9p.

The interim dividend per share was increased by 14% to 7.4p, signaling confidence in the company's financial health and commitment to returning value to shareholders. Gamma completed a £45.1 million share buyback during the period, following a £27.3 million buyback in 2024, further enhancing shareholder value.

Despite strong operational performance, Profit Before Tax (PBT) decreased by 10% to £43.5 million, though Adjusted PBT increased by 9% to £61.0 million. Earnings Per Share (EPS) also saw a decrease of 7% to 34.1p, while Adjusted EPS increased 13%. The net debt position shifted from £142.9 million net cash to £21.6 million net debt, due to acquisitions and buybacks.

Key Growth Drivers

1. German Acquisitions: The acquisitions of Starface and Placetel drove significant revenue growth and improved gross margin.
2. Cloud Seat Expansion: Total cloud seats increased by 50% to 1.8 million, demonstrating strong adoption of Gamma's cloud-based solutions.
3. Strategic Portal Development: The development of a new portal architecture enhances the customer experience and streamlines ordering processes.

CEO Andrew Belshaw stated, “Gamma has achieved another strong set of results… We continue to view M&A as a key tool to complement our organic growth.” This statement reinforces the company’s strategic focus on expansion and leveraging acquisitions for growth.