12th May 2015 07:57
LONDON (Alliance News) - Satellite data communication services company Avanti Communications Group PLC Tuesday said it produced revenue growth of 26% in the nine months to end-March, and its current trading remains strong.
At constant currency and adjusted for an exceptional European Space Agency grant in the previous year, continuing business revenue rose 54.5% in the nine months, Avanti said. It expects this growth rate to continue into the fourth quarter of 2015 and into 2016.
Earnings before interest, tax, depreciation and amortisation was USD1.6 million in the third quarter, which Avanti said partly offset the loss it reported in its first half.
Avanti cited demand for data connections in high growth markets through its Ka band of satellites.
The company's average fleet utilisation was at the upper end of the 15%-20% band in the third quarter of 2015, it said, having risen from the 10%-15% range in the same period of the previous year. Its average pricing remained stable during the quarter across all of its markets.
Avanti signed 72 new and extended contracts in its first nine months, and said it has a range of substantial opportunities in its pipeline.
The launch of its new 28 gigahertz HYLAS 4 satellite remains on track for early 2017, and work on its smaller 4 gigahertz HYLAS 3 satellite is also progressing well, although the manufacturer of the satellite has advised that the launch of this satellite may be pushed back to the beginning of 2017.
"We are developing our distribution platform across EMEA, extending our relationships with existing customers and winning some important new business," said Chief Executive Officer David Williams in a statement. "We now have strong inbuilt growth from our core customer base and some substantial incremental opportunities in the pipeline."
Shares in Avanti are trading up 3.0% at 237.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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