London, Aug 24, 2016 – Speedcast International Limited (ASX:SDA), a leading global satellite communications and network service provider, today announced its financial results for the six month period ended June 30, 2016, with revenue of USD101.5 million, a 41% period-on-period increase.
Speedcast achieved strong period-on-period growth in revenue. Statutory revenue grew 41% to USD101.5 million, for the period ended June 30, 2016, while service revenues grew 54% over the same period last year.
Underlying EBITDA profitability was USD17.0 million, a 34% increase versus the same period last year.
Underlying NPATA, excluding non-recurring costs was USD8.2 million, an increase of 21% period-on-period.
The Board has approved the payment of a fully franked dividend of AUD3.20 cents per share for the six months ended June 30, 2016.
In Maritime, strong underlying market fundamentals have enabled Speedcast to continue to add good numbers of VSAT vessels to the group’s global network as well as deliver strong growth in L-band revenues. In 1H 2016, the group has delivered a number of significant wins and partnerships in the Maritime sector, including two recent wins adding circa 100 additional maritime VSATs (MMA Offshore and DH Intercom), boding well for revenue growth in the second half of the year and beyond. This division represents 31% of the Group’s core service revenues.
The Enterprise and Emerging Markets (“EEM”) business, representing approximately half of the group’s core service revenues, has continued to deliver steady growth. A number of new wins were achieved in the Pacific region, while the Government and Telecom sectors are showing promising developments.
In the Energy sector, the group continued to establish itself as a global player and a credible alternative to existing major competitors. The roll-out of the group’s strategy in this market is progressing well. The Energy division represents 17% of the Group’s core service revenues. The group has delivered meaningful wins in 1H 2016 on multiple continents and the pipeline has strengthened amidst a stabilisation of the sector.
On 1 April 2016 Speedcast completed the acquisition of NewCom International, which opened a new growth frontier in the South and Central American regions and strengthened Speedcast’s presence in North America with a major office and teleport in Miami, a key hub for the yachting, cruise and government markets
On 1 July 2016 the acquisition of ST Teleport Pte Ltd was completed, adding a world class infrastructure & presence in the important hub of Singapore
On 8 August 2016 Speedcast entered into a definitive agreement to acquire WINS Limited for EUR60 million, a satellite communications company 100% focused on the maritime sector. The WINS acquisition adds a strong presence in Germany, the second largest merchant shipping market in Europe, and diversifies the Group’s maritime business into the fast growing segment of passenger carrying vessels. The combinations of WINS’ capabilities and experience servicing cruise ships and ferries, with Speedcast’s global presence creates an attractive opportunity to develop our business in this segment on a global basis.
In addition to the growing traction within our core markets, Speedcast’s commitment to its customers is also being recognised by industry authorities. In 1H 2016,
Speedcast has been awarded industry recognitions including:
Communications Alliance and CommsDay (ACOMM) Award for ‘Satellite Provider of the Year.’
Finalist for the World Teleport Association (WTA) 2016 Teleport Awards for Excellence.
Speedcast CEO, Pierre-Jean Beylier recognised as Teleport Executive of the Year by World Teleport Association
“We are excited to deliver strong half year results with significant achievements both financially and operationally”, commented Pierre-Jean Beylier, Chief Executive Officer of Speedcast. “In 1H FY2016, we managed to grow at a fast pace while building the foundations for future growth in some of our key emerging markets. Amidst a difficult market background, Speedcast has executed well and continued to gain market share. Our integration activities have been intense and will continue to generate cost synergies for the group. More importantly, we are starting to operate as a truly global and integrated company, aligning our teams and processes around the world to capture larger and more global business opportunities. Across our three divisions, we are well positioned to provide best-in-class services, innovative solutions and grow the business further which will deliver value to our customers, partners and shareholders in 2016 and beyond”, Mr. Beylier added.