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1. Company Snapshot

1.a. Company Description

Gamma Communications plc provides communications and software services for small, medium, and large sized business.It offers strategic services, such as collaboration, cloud PBX, SIP trunking, and inbound call control services; enabling services, including ethernet, broadband, network, and mobile; and traditional call and line services.The company offers its services through a network of channel partners, as well as directly to end users.


Gamma Communications plc was founded in 2001 and is headquartered in Newbury, the United Kingdom.

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1.b. Last Insights on GAMA

Gamma Communications' recent performance was impacted by a decline in EPS to UK£0.34, down from UK£0.37 in 1H 2024. Despite a 12% revenue increase to UK£316.6m, macroeconomic headwinds and market transitions posed challenges. The company's strategic acquisitions and expansions, including a partnership with Crexendo to drive growth for service providers, are underway. However, the earnings decline and potential headwinds from market transitions may weigh on the company's short-term prospects. (Source: Company reports)

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Crexendo and Gamma Communications Partner to Help Service Providers Drive Growth

Oct -27

Source: accessnewswire.com

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Gamma Communications (LON:GAMA) Will Pay A Dividend Of £0.074

Sep -15

Source:

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Gamma Communications PLC (FRA:6GC) (H1 2025) Earnings Call Highlights: Strong Financial ...

Sep -12

Source:

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Gamma Communications PLC (FRA:6GC) (H1 2025) Earnings Call Highlights: Strong Revenue Growth ...

Sep -11

Source:

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Gamma Communications First Half 2025 Earnings: EPS: UK£0.34 (vs UK£0.37 in 1H 2024)

Sep -11

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Gamma Communications plc (LON:GAMA) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?

Jul -24

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Gamma Communications' (LON:GAMA) Dividend Will Be Increased To £0.13

May -14

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Gamma Communications (LON:GAMA) Will Pay A Larger Dividend Than Last Year At £0.13

Apr -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.78%)

6. Segments

UK Indirect

Expected Growth: 6.5%

Gamma Communications plc's UK Indirect segment growth of 6.5% is driven by increasing demand for cloud-based communication solutions, expansion of its channel partner network, and strategic investments in digital transformation. Additionally, the segment benefits from the growing adoption of Microsoft Teams and the company's strong relationships with major carriers, further fueling growth.

UK Direct

Expected Growth: 7.5%

Gamma Communications plc's 7.5% growth in UK Direct is driven by increasing demand for cloud-based communication solutions, expansion of its customer base in the mid-market and enterprise segments, and strategic partnerships with major IT and telecom providers. Additionally, investments in digital transformation and customer experience have enhanced its competitive position.

European

Expected Growth: 6.8%

Gamma Communications plc's 6.8% growth in the European segment is driven by increasing demand for cloud-based communication solutions, expansion of its indirect channel, and strategic partnerships. Additionally, the company's focus on innovation, such as its Microsoft Teams integration, has contributed to its growth momentum.

7. Detailed Products

Gamma Horizon

A cloud-based phone system that provides advanced communication features and integrations with popular business applications

Gamma Mobile

A mobile service that provides cost-effective and flexible mobile solutions for businesses

Gamma Broadband

A range of high-speed broadband services that provide fast and reliable internet connectivity

Gamma Inbound

A cloud-based call management system that provides advanced call handling and routing features

Gamma SIP Trunks

A SIP trunking service that provides a cost-effective and scalable alternative to traditional ISDN lines

Gamma Microsoft Teams Direct Routing

A direct routing service that enables businesses to make and receive calls directly within Microsoft Teams

8. Gamma Communications plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Gamma Communications plc has a moderate threat of substitutes due to the presence of alternative communication services such as email and social media.

Bargaining Power Of Customers

Gamma Communications plc has a low bargaining power of customers due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

Gamma Communications plc has a moderate bargaining power of suppliers due to the presence of multiple suppliers in the market.

Threat Of New Entrants

Gamma Communications plc has a high threat of new entrants due to the low barriers to entry in the communication services market.

Intensity Of Rivalry

Gamma Communications plc operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.34%
Debt Cost 7.65%
Equity Weight 98.66%
Equity Cost 7.65%
WACC 7.65%
Leverage 1.36%

11. Quality Control: Gamma Communications plc passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NOS

A-Score: 7.5/10

Value: 7.5

Growth: 5.2

Quality: 5.8

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Orange Belgium

A-Score: 5.3/10

Value: 5.8

Growth: 4.3

Quality: 2.7

Yield: 0.6

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Helios Towers

A-Score: 5.2/10

Value: 3.0

Growth: 8.4

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Gamma Communications

A-Score: 4.9/10

Value: 4.5

Growth: 7.2

Quality: 7.7

Yield: 2.5

Momentum: 0.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
LINK Mobility

A-Score: 4.6/10

Value: 5.8

Growth: 8.7

Quality: 3.1

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
VEON

A-Score: 4.3/10

Value: 7.8

Growth: 2.0

Quality: 5.6

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.4$

Current Price

9.4$

Potential

-0.00%

Expected Cash-Flows