Beam Communications (ASX:BCC) posts 26pc increase in half-yearly revenue

• Beam Communications (BCC) has recorded nearly a 26 per cent increase in revenue to $8.95 million for the first half of FY21
• The telco company also saw a positive operating cashflow of $389,352
• However, these figures don’t include recurring subscription revenue for the ZOLEO device, as they’re recognised by joint venture company ZOLEO Inc
• Additionally, net profit after tax increased by 14.6 per cent to nearly $184,000
• ZOLEO is Beam’s global messaging device, which allows users to send messages outside of mobile coverage
• The device has won a number of awards and is now distributed by major retailers including Catch Group, Myer, and Kogan.com
• Beam rounded off the half year with $4.4 million in cash after a placement and positive operating cashflow
• Company shares ended the day 1.67 per cent in the red to trade at 29.5 cents at market close

Beam Communications (BCC) has recorded a 25.8 per cent increase in revenue to $8.95 million for the first half of the 2021 financial year.

While the group’s revenue is a pleasing result, it doesn’t factor in recurring revenue or activation charges from subscribers of its ZOLEO device, which is recognised by Beam’s joint venture company, ZOLEO Inc.

Interim operating profit before tax also climbed 21.7 per cent to $480,769 with net profit after tax rising to $183,960 — marking a 14.6 per cent increase.

The telco company also announced a positive operating cashflow for the first half of $389,352 which, again, doesn’t include recurring subscription revenue from ZOLEO.

Part of the operating cashflow result was caused by Beam temporarily cutting all employee wages by 20 per cent during the height of the pandemic.

Beam’s subsidiary, SatPhone Shop, saw a slight 4.4 per cent decrease in sales but given the extent of Australian lockdowns, particularly in Victoria, the company considers this an excellent result.

Despite facing COVID-19 challenges, Beam is impressed with these results and the growing demand for its global messaging device which allows users to send messages outside of mobile coverage.

Since launching in late 2019, ZOLEO has gained international recognition and won its fourth major industry award. Most recently, it was chosen out of 189 entrants to be the “Product of the Year” by a North America trade show, Outdoor Retailer.

In terms of distribution, Beam has secured big industry names such as Myer, Catch Group, Kogan.com, as well as BPS Direct who is the world’s largest outdoor equipment retailer.

During the half-year, Recreational Equipment (REI) became the latest major U.S. retailer to sell ZOLEO. REI has over 13,000 employees that service active consumers from 168 locations over 39 U.S. states.

Beam and its ZOLEO joint venture are advancing plans to expand distribution into more markets in FY22. The companies also expect to see ongoing growth momentum and new orders.

Beam rounded off the half year with $4.4 million in cash after a placement and positive operating cashflow.

Company shares ended the day 1.67 per cent in the red to trade at 29.5 cents at market close.