Shares of Avanti Communications Group Plc (AVN.L) plunged around 16 percent in the morning trade on London Stock Exchange after the satellite operator reported a wider loss in its fiscal year 2012, despite significant growth in revenues.
For the year ended June 30, loss before tax widened to 16.0 million pounds from 12.7 million pounds prior year. Basic loss per share was 14.86 pence compared to a loss of 12.14 pence prior year.
EBITDA loss was 5.3 million pounds, narrower than last year's 9.7 million pounds.
The company noted that its costs, as expected, increased as it incurred a full 12 month's depreciation on HYLAS 1 as opposed to only three months in 2011. The firm also continued to invest heavily in staff principally in the ramp up of the HYLAS 3 project and in boosting sales and marketing teams in the run-up to HYLAS 2's launch.
Revenue, however, surged to 12.5 million pounds from 5.5 million pounds last year. Turnover and other operating income for the year increased 246 percent to 15 million pounds, benefited by sales for HYLAS 1. The company said revenue from HYLAS 2 will start to be realised in the fourth quarter of calendar 2012.
Avanti added that its performance was in line with management expectations for the year.
John Brackenbury, CBE, Avanti Chairman commented, "This has been a year of very strong growth for Avanti. The momentum of launching our second satellite in as many years to expand coverage to a total of 53 countries has created very significant demand. This is now evidenced in our contract backlog which grew by 57 percent in the year. Within the emerging markets that Avanti serves our flexible and resilient technology is winning business from customers who urgently need reliable, high quality communications."
In London, Avanti shares are currently trading at 292.56 pence, down 56.19 pence or 16.11 percent.
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by RTT Staff Writer
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