Tuesday, July 5

Gigas: “Everything that has been done this year gives us an excellent position for a 2022 growth”

According to the forecasts announced by the company, at the end of the year they expect to achieve revenues five times higher than those of 2020, exceeding 52 million euros. What is the strategy that Gigas follows to achieve the estimated figures?

Gigas closed last year with a turnover of 10.9 million and we expect to close this year above 52 million in turnover with those almost five times. This growth comes mainly from the purchases that the company has made in the last 12 months, at the end of last year and this year. In the last twelve months, five companies have been bought, one in 2020 and four in 2021 and that’s where the bulk of the growth comes from, along with organic.

Now that the year is over, what balance do you make of 2021?

For us, the pandemic has not had much effect this year, last year it did have more effect due to the devaluation of Latin American currencies and certain discounts that we had to make to clients, but after last year’s part, this year it has not had an impact. negative, perhaps even positive as companies are turning to accelerate their digitization and put their things in the cloud.

Taking stock of the year, in addition to that reinforced trend that we see due to digital transformation and which is good news for Gigas because it means that companies will consume more telecommunications and more cloud, for us it has been a year of transformation and a year in which the company has completely changed. We have gone from a company of almost 11 million euros to a company of 52 this year, but from a proforma of almost 64 million euros in turnover, therefore, a huge leap, an entry into the telecommunications segment, in the that before we weren’t since we only operated in the Cloud part.

It has been a year of transition and transformation in which we are consolidating the purchases made, integrating the companies that have joined our group and launching the new offer of services to the market in which Gigas wants to position itself as a comprehensive provider of technology solutions , that is, not only offer cloud services but also offer communication services – both data, fixed voice and mobile voice – and cybersecurity. With these three sections – cloud, communications and cybersecurity – to be the integral provider that can satisfy all the technology needs of companies.

This has been our year, very intense, with many transactions, corporate operations, a lot of integration and consolidation of equipment, assets and services and the preparation of all these new products and this repositioning of the company.

It has been a very positive year, we are very happy with everything that has been done and where we are right now, which gives us an excellent position to have a 2022 with a lot of organic growth.

What are Gigas’ New Years Resolutions? Will we be able to see any new integrations in the coming months?

The purposes are to finish integrating all the companies and end all the consolidations, which are well advanced because an excellent job has been done by all the teams, especially the operational and financial teams. You have to finish that job to really operate as a single company and have a cohesive group.

On the other hand, launch all the new services and the new convergent cloud, communications and cybersecurity offer, in which there are already services that we have launched and we want to launch new services and packages to provide services to all companies.

Therefore, we expect a 2022 of strong growth both due to the consolidation perimeter, and that all the companies will be consolidating from January 1 and, therefore, we will have growth there that will come from the consolidation and, on the other hand, an organic growth, which we hope will be strong with all the services that we are going to offer and all the cross-selling that we are going to take advantage of between all the companies that have been bought, clients that only have telecommunications services and we can offer them cloud, or customers who only have cybersecurity and we can offer them cloud and telecommunications or vice versa.

We have very good prospects, we are very optimistic about the future, with the coming year, we also believe that European funds, if they are going at a good pace and arrive in the expected deadlines, because it will be a very important boost for companies such as ours, in which the entire digitization process and all the funds destined for the more digital part, which is supposed to be a very important part, almost a third of the funds, will positively impact our business and demand of our services.

What prospects do you have for the sector for 2022? How do you think the world of telecommunications and cloud services will evolve?

The outlook is very positive, we are very optimistic about what will be next year, the next few months and the next few years. What the pandemic has done is that companies consider having all the information in the cloud, as well as their applications, to be able to work from anywhere. Clearly, there were already advantages of having it like this, of being able to work from anywhere, at any time, from anywhere and the pandemic has confirmed that, that it has advantages and that, in some cases, it is absolutely necessary, as we have seen in the confinements throughout the year. last. We would not want to return to that situation, but the trend is already launched, the seed is already in all the heads of company executives and that is only going to increase the demand for both cloud and telecommunications services.

Whatever happens with the evolution of the pandemic, we hope that these new variants will not go further and are not a problem that will make us back down, but even so, companies are clear that digital transformation is, first, essential for their competitiveness , for their future and, furthermore, for situations like those we have experienced with mobility restrictions, it is the only alternative to continue working.

I hope it doesn’t go any further, but we have very positive prospects.

From the price side, do you think the market is not valuing Gigas as it deserves?

If we compare Gigas with other companies that may be similar to what we do, perhaps the multiples at which Gigas is trading are somewhat lower and, in some cases, considerably lower than those comparable.

On the other hand, with the figures we have right now and with the proforma EBITDA, with the Market Cup we have around 130 million euros, if we add the net financial debt about 150 million and, in addition, there are some convertibles, some stock options, that is, fully diluted is a company that is more or less in the area of ​​11-12 times EBITDA right now.

It is true that with the growth we are having, we could have higher valuations, but I believe that the market will see how we are presenting the results, as all the figures that we have projected appear and that will give the action a path.

For me and for the whole team, the important thing is the business, to keep growing, being more and more profitable, increasing growth and EBITDA and I think the price will come later. This is how we have seen it in the six years that we have been listed, there are times that it is ahead, like last year when we announced the first operation that the price shot up and there are other times that it is behind, but in the end it ends up reaching and the important thing It is the underlying, the results we are having are very positive and the market will end up valuing it, I am convinced.


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