Bigblu Broadband plc (LON:BBB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in Australia and the Nordics. The UK£29m market-cap company announced a latest loss of UK£1.6m on 30 November 2021 for its most recent financial year result. As path to profitability is the topic on Bigblu Broadband's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Bigblu Broadband

Expectations from some of the British Telecom analysts is that Bigblu Broadband is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of UK£2.1m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 100% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Bigblu Broadband's growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Bigblu Broadband has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Bigblu Broadband which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bigblu Broadband, take a look at Bigblu Broadband's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Valuation: What is Bigblu Broadband worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bigblu Broadband is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bigblu Broadband’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.