Avanti Communications Group PLC (AIM: AVN) (“Avanti” or “the Group”), a leading provider of satellite data communications services in Europe, the Middle East and Africa, issues the following update for the quarter ended 30 September 2018 and post quarter to date. This represents the Company’s fifth quarter ahead of the 18 month period ending 31 December 2018 pursuant to the Company’s change of year end announced in May 2018.
- Seven-year wholesale capacity agreement signed for $84 million
- $10 million contract signed with Viasat for HYLAS 4 capacity
- Master Distribution Agreement agreed with Comsat, gaining access to US Government
- Revenue for the 3 months to 30 September 2018 was $10.8 million
- EBITDA loss of $10.6 million
- Successful arbitration proceedings against the Government of Indonesia and subsequent receipt of $20.1 million
- Period end cash balance was $13.3 million
- Period end backlog was $164.6 million
- Post period $34.5 million draw-down through extension to the existing Super-Senior Facility
Seven-Year Wholesale Capacity Agreement
In September 2018, Avanti signed a seven-year wholesale capacity lease agreement, worth US$ 84 million over the period, with a major international satellite service provider. The Company will receive US$ 12 million per annum in quarterly instalments for the duration of the agreement once commenced. The agreement is expected to commence in Q3 of the Company’s next financial year ending 31 December 2019. The capacity lease agreement for its HYLAS-fleet of satellites will increase significantly the Company’s usage and fill-rates.
$10 million Contract with ViaSat
In June 2018, Avanti signed our first HYLAS 4 contract for steerable capacity with ViaSat. The contract is worth $10 million over two years.
Master Distribution Agreement agreed with Comsat
Avanti is establishing a strategic presence in Washington, D.C. which will be purely focused on selling our Mil-Ka capacity to the US Government and related agencies.
We have concluded a unique Master Distribution Agreement with Comsat Inc, USA. They are a fully approved, long term satellite communications supplier to the US Department of Defense, US Government and other related agencies. The seven-year contract enables Avanti to immediately access these key growth markets to offer its HTS network.
Successful Arbitration – Government of Indonesia
In July 2018, we were successful with our arbitration proceedings against the Government of Indonesia. In early August 2018, we received $20.1 million in full settlement.
$34.5m Super-Senior Facility Draw-Down
The Company has signed an agreement to extend the existing Super Senior Facility from $132.5 million ($118 million drawn) to $152.5 million and the Group is drawing down the additional $34.5 million of new funding to support the business going forward.
The current activity levels and pipeline gives us confidence that we will see strong growth in bandwidth revenues in the final quarter of 2018. Furthermore, the recently signed contracts underpin significant growth in core bandwidth revenue throughout 2019.
This announcement contains inside information.
For further information, please contact:
Avanti: Nigel Fox, Chris McLaughlin +44 (0)207 749 1600
Cenkos Securities (Nomad): Max Hartley, +44 (0)207 397 8900
Montfort: Nick Miles / James Olley, +44 (0)203 770 7909
Newgate Communications: Ralph Anderson, +44 (0)203 757 6883