Satellite Solutions Reaches Customer Numbers Target Ahead Of Schedule

26th Mar 2018 11:23

LONDON (Alliance News) - Satellite Solutions Worldwide Group PLC said on Monday it has made a strong start to its new financial year after posting a wider loss despite revenue doubling in its prior year.

In the 12 months to November, broadband services provider Satellite Solutions posted a pretax loss of GBP10.1 million from GBP6.2 million the prior year. Revenue, however, increased to GBP43.9 million from GBP21.5 million.

Recurring revenue made up 90% of total revenue, from 84% the prior year, and more than doubled to GBP39.6 million. Like-for-like revenue growth was 13% year-on-year. During the year, the company passed 100,000 customers, passing the target ahead of schedule. At the year's end, numbers were up 27% year-on-year to 100,240 from 78,717.

The widened loss can partly be attributed to a rise in distribution & administration expenses of 80% to GBP10.9 million and a threefold year-on-year increase in depreciation and amortisation to GBP10.8 million.

Satellite Solutions said the increased costs were related to previous acquisitions in 2016 and 2017 and to investments made in new and existing businesses.

During its year, Satellite Solutions acquired Australian firm BorderNET Internet Pty Ltd and the customer bases of NextNet and AS Distriktsnett in Norway for a total of GBP1.8 million, the three of which added 5,500 new customers. All three businesses are meeting expectations, Satellite Solutions said.

Looking ahead, Satellite Solution said it is ready for "another step change" in profitability in its next year, with trading strong since November. Revenue growth in the three months to February was "strong" on a like-for-like basis.

Chief Executive Andrew Walwyn commented: "This was an extremely active period for the company as both organic growth and acquisitions helped us to reach our targeted 100,000 customers ahead of schedule, with revenue and earnings before interest, tax, depreciation, and amortisation growing significantly during the year.

"Importantly, the hard work during the period means that we have an extremely solid base for further growth with all of our geographic hubs performing well and benefiting from centralised cost bases, ensuring that we are set for another step change in profitability this year."

Shares were up 0.8% on Monday at a price of 8.57 pence each.