Speedcast International Limited Reports Full Year 2017 Results With 136% Revenue Growth And 195% EBITDA Growth

SYDNEY, Feb. 27, 2018 Speedcast International Limited (ASX: SDA), the world’s most trusted provider of remote communication and IT solutions, today announced Full Year 2017 results, with revenue of US$514.2 million, a 136% increase over 2016, and corresponding  EBITDA growth of 195%.

Financial highlights

  • Total revenue of US$514.2M and EBITDA of US$122.6M in 2017
  • Triple-digit year-on-year revenue growth of 136% and EBITDA growth of 195%
  • EBITDA margin surged to 23.8% (FY16: 19.0%) reflecting the impact of cost synergies from the integration of Harris CapRock and operational leverage from increased scale
  • 2017 includes two months of UltiSat contribution, a transaction completed on 1 November 2017. Revenues of US$14.1M and EBITDA of US$2.4M are included in the Speedcast Full Year 2017 results.
  • Excluding UltiSat, Speedcast delivered US$500M in revenues and US$120.2M in EBITDA
  • Final dividend of AU4.80cts per share, bringing 2017 total dividend to AU7.20cts per share, a 75% year-on-year increase in the overall dividend payment

Operational Highlights

  • With the acquisition of Harris Caprock in January 2017, Speedcast provides service to approximately 70% of the cruise ships around the world, serving the two top global cruise fleets in addition to multiple smaller fleets
  • Speedcast Energy revenues stabilised in 2017 as Energy companies continued to rely on Speedcast’s communication solutions for their sites that remain in operation. During the year, our customers started planning for scalability as they await the sector’s upswing in the next 12 to 18 months.
  • In 2017 Speedcast Maritime revenues saw 18% growth as over 650 new VSAT services were activated for Commercial Maritime customers
  • Enterprise and Emerging Markets grew slightly thanks to contributions from the Harris CapRock acquisition. NBN revenues expected in 2017 have been pushed to 2018.
  • On November 1, 2017, Speedcast completed the acquisition of UltiSat which positions the Group well in the Government segment as military budgets are expected to grow globally

“2017 was a transformative year for Speedcast during which we firmly established our leadership position in the industry and built a unique global platform, with a stronger ability to win business,” said Pierre-Jean Beylier, Speedcast CEO. “Our 2017 results demonstrate the benefits of our scale and the synergies derived from the acquisition of Harris CapRock. Speedcast’s leadership in the key verticals we serve positions the company well for good financial performance in 2018.  We will continue to focus on customer satisfaction, on innovation in all that we do, and on our people, who are our biggest asset.”

Speedcast is also announcing that CFO Ian Baldwin will be leaving Speedcast at the end of the month for family reasons and will be pursuing a new opportunity. Ian joined the company shortly after the IPO in 2014 and during his tenure helped lead the group through significant growth, including the acquisition and integration of 10 companies.  Speedcast is actively recruiting a new CFO with the right experience and leadership to drive the company through its next phase of growth.  “I want to thank Ian for his contribution to the growth of Speedcast over the past three years and wish him all the best in the next chapter of his career,” said Pierre-Jean Beylier, Speedcast CEO.