Gamma Communications has released its results for the year ended 31st December 2024, revealing sustained strong financial performance, enhanced by acquisitions alongside growth that is in line with company expectations.
Key highlights of the report include gross profit and Adjusted EBITDA growth in all business units, driven by solid organic growth and supported by acquisitions, including three completed during 2024, each enhancing future organic growth: Coolwave in February; BrightCloud in July: and Placetel in September.
The Group acquired STARFACE in February 2025, a strategically significant acquisition positioning Gamma as one of the leading companies in the German SME cloud communications market when combined with the acquisition of Placetel.
Group performance results show that Group revenue grew by 11% to £579.4m, alongside gross profit that grew by 12% to £300.3m, compared to £521.7m and £267.2m respectively in 2023.
Adjusted EBITDA also grew by 10% to £125.5m, up from £114.3m in 2023. Acquisitions have positively contributed to the Group’s performance during the year.
On an organic basis growth was solid as revenue increased by 5%, gross profit by 6%, and Adjusted EBITDA by 6%.
Financial highlights also show that recurring revenue (being revenue which is recognised “over time”) grew to £516.6m from £462.8m the year before, being 89% of revenue as existing customers renewals and new customer agreements continued to deliver contracted income.
Gamma Business continued to grow strongly driven primarily by its UCaaS portfolio and supported by recent acquisitions, and this saw gross profit increase by 11% to £194.7m, from £176.1m in 2023.
The company outlook expects satisfactory Group organic growth supported by continued active cost management throughout the year, that will be further strengthened by the recent German acquisitions.
Andrew Belshaw, Chief Executive Officer, Gamma commented: “Gamma has achieved another strong set of results, marked by robust revenue growth, stable margins, and healthy cash generation despite general soft macro-economic performance in our two main markets of the UK and Germany.
“The strength of Gamma’s balance sheet has enabled us to expand our capabilities, through both product development and strategic acquisitions from Coolwave and BrightCloud to Gamma – their contributions will be invaluable as we continue to expand our solution set.”
Image shows: Andrew Belshaw, Chief Executive Officer, Gamma