Speedcast International Limited Announces 143% Revenue Growth for Half Year 2017
August 28 2017 - 9:21PM
Business Wire
Speedcast International Limited (ASX: SDA), the world’s most
trusted provider of highly reliable, fully managed, remote
communication and IT solutions, today announced its financial
results for the six-month period ended 30 June 2017, with group
revenues of USD 246.3 million, a 143% period-on-period
increase.
Financial Highlights
- Group revenues grew 143% to USD 246.3
million for the period ended 30 June 2017, while service revenues
grew 165% to USD 231.9 million.
- Underlying EBITDA profitability was USD
52.8 million, a 210% increase over the same period last year.
EBITDA margins grew 470 basis points to 21.4% in 1H17.
- Underlying NPATA, excluding
non-recurring costs, was USD 15.1 million, an increase of 86%
period-on-period.
- Strong operating cash flows (96% of
underlying EBITDA), generated as a result of improved working
capital disciplines, delivered balance sheet de-leveraging in line
with expectations. Net debt reduced from USD 356 million at 31
December 2016 to USD 333 million at 30 June 2017.
- The Board declared a fully franked
interim dividend of AUD 2.40 cents per share for the six-month
period ended 30 June 2017, consistent with the final dividend for
2016 and utilising the maximum amount of franking credits.
Operational Highlights
- On 1 January 2017 Speedcast completed
the acquisition of Harris CapRock. The acquisition positions
Speedcast as the leader in the key vertical markets of Energy and
Maritime. As a result of the integration, Speedcast will have the
largest global satellite footprint, which will provide
unprecedented value to our customer base.
- Since the acquisition, Speedcast has
completed >80% of the identified Harris CapRock integration
milestones. Key initiatives remaining include ERP implementation,
full integration of the ticketing system, and network
consolidation. The investment thesis is being proved out as a
result of the increased synergies. Additional cost synergy benefits
have been identified with total cost synergies now expected to be
over USD 30 million compared with USD 24 million previously
communicated.
- Speedcast had a 100% renewal rate
within the Energy sector for the first half of the year. The group
is positioning itself to be the partner of choice to lead the
customers through the recovery.
- The Maritime group made significant
progress in the integration of the Cruise business, while
establishing relationships with key customers. In addition, a
successful pilot was completed demonstrating >400 Mbps to a
single cruise ship.
- Speedcast is experiencing a strong win
rate within the Cellular Backhaul market. Cellular Backhaul will be
one of the fundamental growth areas in the satellite industry for
the next 10 years with double digit CAGR growth expected (Source:
NSR).
- On 23 July 2017 Speedcast entered into
a definitive agreement to acquire UltiSat for a purchase
consideration of up to USD 100 million. This acquisition will give
Speedcast its fourth growth pillar, Government. Retail revenues for
the Government sector are expected to reach USD 9.3 billion by
2025, up from the current market size of USD 4.8 billion (Source:
NSR).
- Speedcast’s services and commitment to
excellence is also being recognized by industry authorities. In 1H
2017 Speedcast has been awarded industry recognitions including:
- 2017 World Teleport Association’s (WTA)
Independent Teleport Operator of the Year
- Speedcast CEO, Pierre-Jean Beylier
received Finance Monthly CEO Award 2017
“We are very proud of the progress we have made since the
completion of the acquisition of Harris CapRock,” said Pierre-Jean
Beylier, Chief Executive Officer of Speedcast. “Amidst a difficult
market background, Speedcast has executed well, both from a
financial and an operational perspective. We are taking advantage
of the opportunities in all of our target markets, and delivering
world-class, innovative global solutions. Speedcast is well
positioned to deliver value to our customers, partners and
shareholders in 2017 and beyond.”
About Speedcast International Limited
Speedcast International Ltd (ASX: SDA) is the world’s most
trusted provider of highly reliable, fully managed, end-to-end
remote communication and IT solutions. The company utilizes an
extensive worldwide footprint of local support, infrastructure and
coverage to design, integrate, secure and optimize networks
tailored to customer needs. With differentiated technology, an
intense customer focus and a strong safety culture, Speedcast
serves more than 2,000 customers in over 140 countries via 39
teleports, including offshore rigs and cruise ships, 10,000+
maritime vessels and 4,500+ terrestrial sites. Speedcast supports
mission-critical applications in industries such as maritime, oil
and gas, enterprise, media, cruise and government. Learn more at
www.speedcast.com.
Social Media: Twitter | LinkedIn | Facebook
Speedcast® is a trademark and registered trademark of Speedcast
International Limited. All other brand names, product names, or
trademarks belong to their respective owners.
© 2017 Speedcast International Limited. All rights reserved.
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Speedcast International LimitedIan Baldwin, +61 432 680 746Chief
Financial Officerian.baldwin@speedcast.com
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