Results for the six months ended 31 December 2014

RNS

Results for the six months ended 31 December 2014

Avanti Communications delivers strong revenue growth in line with expectations and has funded HYLAS 4

Avanti Communications Group plc (“Avanti” or “the Group”), a leading provider of satellite data communications services in Europe, the Middle East and Africa, today announces its results for the six months ended 31 December 2014.

Highlights

  • Revenue up 24.4% to $31.1m (H1 2014: $25.0m) in line with expectations despite currency translation headwinds
  • EBITDA(1) before ex gratia receipt and share based payment expense $3.5m loss (H1 2014: $4.1m loss)
  • Construction of the key HYLAS 4 satellite commenced during the period and the HYLAS 3 project is on-track
  • Positive outlook with significant revenue growth visible in Q3 following recent contract awards
  • Post the period end, $91.5m (£60.6m) of capital raised to secure the financing of HYLAS 4

David William’s Avanti’s CEO said: “Avanti has made good progress in the first half of the 2015 financial year. In addition to delivering revenues in-line with our expectations, we have enhanced our growth platform securing 49 new contracts, developing deep relationships with several major global customers and commencing the construction of our key HYLAS 4 satellite. A material increase in revenue in the third quarter is visible following recent contract awards, which will help to underpin our full year expectations. In the longer-term, we remain confident that Avanti’s infrastructure has the potential to deliver over $500m of EBITDA annually. Our positive revenue growth outlook, together with the recent capital raise to secure the funding of HYLAS 4, which was strongly supported by new and existing blue chip investors, help to underpin our trajectory to this point”. 

 

For further information please contact:

Avanti: Matthew Springett, +44 (0)20 7749 6709

Tulchan Group: James Macey White, +44 (0)20 7353 4200

Redleaf: Hannah Nicolas, +44 (0)20 7382 4734

Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44 (0)20 7397 8900

 

(1) For a reconciliation of EBITDA to the operating result see note 11.

 

Notes to editors

Avanti Communications is a leading provider of satellite data communications services in Europe, the Middle East and Africa with significant international spectrum rights and a network covering over one billion people.

The Group has designed and launched a new generation of high throughput Ka band geostationary satellites, in order to address an estimated market opportunity of over $11 billion per annum across EMEA. These satellites, together with Avanti’s highly resilient Ground Earth Stations and proprietary cloud software management system, are able to deliver levels of performance, service and resilience that have been previously unmatched in the industry.

Avanti’s growing customer base includes many of the World’s leading telecoms and media companies, together with government users with civil and security requirements.

Avanti Communications is listed in London on AIM (AVN:LSE).

www.avantiplc.com