• Forecast recovery in H2FY25 following decline in interim results due to disruptions from streamlining initiative and one-off items
• Beam has the balance sheet strength to complete its transformation program and return to profitability
• Positive H2FY25 outlook based on current orders, further growth in recurring revenues, cost savings and absence of one-off items

Beam Communications Holdings Limited posted a drop in revenue and earnings for the first half of financial year 2025 (H1FY25), which was weighed down by significant one-off costs and disruptions from its transformation program, although it is forecasting a rebound in the current half. While normalised Earnings before Interest, Tax and Depreciation (EBITDA) fell 89.7% in H1FY25 compared with the previous corresponding period (PCP), it was still a positive $199K - demonstrating the resilience of Beam's underlying business in the face of the headwinds. Interim operating revenue declined 18.8% PCP to $13.6 million and the Company recorded a statutory net loss of $12.7 million (vs. H1FY24 loss of$252K), which included $10.5 million in one-off items in the period. Importantly, Beam remains adequately funded to complete its streamlining transformation program and return to profitability. The positive outlook is in part driven by the absence of significant one-off items that have weighed on the latest results, including $3.1 million in costs relating to the arbitration proceedings for ZOLEO Inc. and $7.4 million in non-cash impairment costs. Beam is expecting a stronger second half result compared with H1FY25 based on current orders, further growth in recurring revenues, cost savings and the absence of one-off items.

Beam expects to see a marked improvement in its financial performance in the current half, driven by the absence of one-off items, further growth in recurring revenues, and cost savings from its streamlining transformation program.

Beam is forecasting a rebound in the current half based on current orders, further growth in recurring revenues, cost savings and the absence of one-off items. The company is prioritising future capital returns over growth, which will be funded by payments for its ZOLEO royalty stream, the sale of its 50% stake in the ZOLEO Inc joint venture, and the streamlining of the rest of Beam's businesses to a cashflow positive position.