Ann: Investor Presentation - FY2015, page-8

The subdued market reaction (after initial euphoria) to BGL's results is possibly due a focus on statutory versus underlying financials.

BGL's underlying results look good. Underlying results are important because anomalies are removed. But statutory results don't look nearly as good (NPAT down 9%, EBITDA up only 5%). Investors use the statutory results when determining P/E, PEG, etc without looking deeper into the one-off effects. BGL's gearing increased a fair amount. Wholesale fixed wireless slid 10% (but corporate fixed grew strongly). And without cloud and managed services, the story wouldn't be nearly as rosy.

OK, now for the good parts (along with the fact that the good underlying financials are meaningful):
1. BGL is entering cloud and managed services very nicely.
2. Some solid organic growth in community (mostly student residence) broadband.
3. Major student residence contract renewed to 2019 (stabilizes revenue/profit with potential growth).
4. "Significant investment" in infrastructure will drive FY16+ organic growth (already apparent in 2H15 growth trend).
4. BGL outlook is "to continue its growth trajectory". No profit guidance, but BGL might be able to increase underlying EBITDA by 25% in FY16, as it did in FY15. Growth of 15% will occur simply replicating 2H15 results ($10.4M) throughout FY16 and adding Applaud projected EBITDA.