SYDNEY, Australia, February 26, 2019 – Speedcast International Limited (ASX: SDA), the world’s most trusted provider of remote communication and IT solutions, today announced its preliminary financial results for the twelve-month period ended 31 December 2018 (CY2018).
FY2018 Financial Highlights
- Group revenue grew 21% to US$623 million (CY2017: US$514 million)
- Underlying EBITDA grew 7% to US$132 million (CY2017: US$123 million)
- EBITDA margin reduced by 280 basis points to 21.2% (CY2017: 24.0%) due to dilution from the UltiSat acquisition closed in November 2017, phase 1 of the NBN contract, and the mix effect of
- reduced earnings in the Energy division
- Underlying NPATA grew 5% to US$48 million (CY2017: US$46 million)
- Strong operating cash flows with cash conversion of 91% of Underlying EBITDA. (CY2017: 95% of Underlying EBITDA) – lower than in CY2017 primarily due to a temporary working capital
- investment in the NBN project
- Net debt increased from US$388 million at 31 December 2017 to US$581 million at 31 December 2018 primarily as a result of the additional debt incurred in connection with the Globecomm
- acquisition in December 2018, as well as the US$20 million payment for the UltiSat acquisition earnout in 2018.
- The Board declared an unfranked final dividend of AU$ 4.8 cents per share for the year ended 31 December 2018
“2018 was a challenging year for Speedcast,” said Pierre-Jean Beylier, Chief Executive Officer of Speedcast. “Although we delivered strong organic growth across three of our divisions (Maritime, Government, and EEM), our Energy division revenue continued to decline due to ongoing delays in the offshore energy market recovery.
“Despite a challenging year we had significant achievements:
- signing our two biggest contracts ever;
- completing the strategic Globecomm acquisition at an attractive valuation and doubling revenue in our high growth Government division, and
- establishing our shared service centre model including transitioning to a common ERP system.
“As we look to 2019 and beyond, we are confident in our ability to take advantage of our market leading position and unique scale and capabilities to deliver organic growth. Our increasingly diversified business provides numerous growth opportunities, which will create long term value for shareholders,” said Beylier.