logo
Share SHARE
FONT-SIZE Plus   Neg

Avanti Communications FY Revenue Surges, But Loss Widens; Shares Down

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

0 Articles
Editors Pick
Kik Interactive Inc., the parent of chat app Kik, said it will launch a new cryptocurrency or token called Kin for use in everyday digital services, such as chat, social media and payments. Kik said it has decided to propose a new ecosystem of digital services that will be truly open and decentralized, and will start with a new cryptocurrency. Several companies have pulled advertisements from Sean Hannity's Fox News show after he continued to promote a conspiracy theory about Democratic National Committee staffer Seth Rich's death. Hannity has come under fire for spreading a conspiracy theory linking Rich's killing to Wikileaks. Best Buy Co., Inc. reported lower profit in its first quarter on the absence of last year's CRT settlement proceeds. However, earnings per share topped market estimates significantly with higher comparable sales. Looking ahead, for the second quarter, the company projects higher comparable sales, and also lifted fiscal 2018 forecast for higher growth.In pre-market, shares were gaining 11.9 percent
comments powered by Disqus
Follow RTT