SpeedCast International Limited Reports Full Year 2016 Results with 30% Revenue Growth
SpeedCast today announced Full Year 2016 results, with revenue of US$218.0 million, a 30% increase over 2015.
- SpeedCast achieved double-digit year-on-year growth across key financial metrics. Group revenue grew 30% to US$218.0 million year-on-year. The group’s core Service revenues grew at a faster pace and were 34% above 2015 service revenues. Revenues in 2016 included the contributions from three strategic acquisitions completed in 2016 as well as the full year impact of acquisitions completed in 2015.
- Underlying EBITDA profitability was US$41.5 million, a 42% increase on prior year
- The Group achieved a statutory profit before tax of US$10.2 million, a 55% increase on prior year
- Underlying NPATA, excluding non-recurring costs, was US$19.2 million for 2016, an increase of 30% on prior year
- SpeedCast’s Board has approved the payment of a fully franked dividend of AUD2.40 cents per share
- The Maritime division delivered 57% service revenue growth year-on-year, driven by growing penetration of broadband VSAT systems, and including the contributions from SAIT Communications (now SpeedCast Cyprus), Geolink (now SpeedCast France) and WINS Ltd (now SpeedCast Malta)
- The Enterprise and Emerging Market (EEM) division delivered 26% growth year-on-year in service revenues. Gains were made across various target markets in this diversified business.
- The Energy division continued to build momentum, gaining market share despite a declining market impacted by macroeconomic conditions
- During the period, SpeedCast completed acquisitions of NewCom International Inc, ST Teleport Pte. Ltd., and WINS Limited
- On November 1, 2016, SpeedCast announced the acquisition of Harris CapRock and subsequently completed the acquisition on January 1, 2017, well ahead of expected schedule. This transformational acquisition was funded by an equity raise and a new syndicated debt facility.
“2016 was a transformational year for SpeedCast, bringing the company to a leadership position in our industry. Despite headwinds in key industries SpeedCast serves, we continued to deliver sustained growth and value creation for our shareholders”, commented Pierre-Jean Beylier, Chief Executive Officer of SpeedCast. “The diversity of our business, our growing scale, and our strong customer focus have allowed us to differentiate and grow amidst difficult market conditions. 2017 promises to be an exciting year as we complete the integration of Harris CapRock and generate operational efficiencies. The combination of SpeedCast and Harris CapRock capabilities position us well to capture future growth opportunities”, Mr. Beylier added.