Avanti Communications

LN: AVN

£1.1m market cap

0.05p last close

Avanti Communications is a London-based, fixed satellite services provider. It sells satellite data communications services in its key markets of enterprise, broadband, carrier services and government. It has Ka-band capacity on four satellites.

Investment summary

Avanti continued to progress in Q318. Although revenues of $10.8m remained at a low ebb, HYLAS 4 is now commercially operational. Following major contract awards, bandwidth revenues are set to increase strongly in Q418, with significant growth in FY19 underpinned. After receipt of the Indonesian settlement, 30 September cash was $13.3m. The Super Senior Facility was extended to $152.5m and fully drawn providing an additional $34.5m of funding, but options to refinance the facility are being explored. We await further guidance for FY19 trading before restoring forecasts.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 82.8 4.6 (67.0) (49.3) N/A N/A
2017A 56.6 (34.5) (172.9) (104.5) N/A N/A
2018E N/A N/A N/A N/A N/A N/A
2019E N/A N/A N/A N/A N/A N/A
Industry outlook

Avanti has built a Ka-band satellite network to service broadband connectivity for underserviced markets and remote locations in EMEA. In these markets it has been a first mover and it currently owns and operates three satellites in geostationary orbit. Avanti’s increasing focus on Africa is a reflection of the expected rapid growth of demand for data transmission in the region. The potential in the market appears to be validated by competitor announcements of future deployment of Ka-band capacity servicing Africa.

Last updated on 18/09/2019
Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (95.6) (97.0) (98.9)
Relative* (95.8) (97.0) (98.9)
52-week high/low 5.3p/0.0p
*% relative to local index
Key management
Nigel Fox FD

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