Speedcast International Limited Achieves Strong Growth for Half Year 2015
SpeedCast International Limited (“SpeedCast”), a leading global satellite communications service provider, today announced strong half year 2015 results for the period of January through June 2015.
• SpeedCast achieved a strong operating result in 1H 2015, demonstrating double digit year-on-year growth across all major P&L metrics.
• Statutory revenues grew 32% to $71.7 million. Compared with 1H 2014 pro forma revenue, which includes the full period impact of acquisitions completed in 2014, total revenue grew 23%, with core service revenues growing 32% over the same period.
• Underlying EBITDA profitability was $12.7 million, a 32% increase on the prior comparative period (pro forma 1H 2014: $9.6 million) and EBITDA margins continued to improve from 16.4% to 17.7% in 1H 2015 as integration synergies relating to the 2014 acquisitions were realised, and despite the dilutive margin impact of the Hermes and Geolink acquisitions.
• The group delivered a statutory profit of $2.2 million compared with a loss in the 2014 comparative period of $5.5 million.
• Underlying NPATA, excluding non-recurring transaction related costs, was $6.8 million for 1H 2015, an increase of 42% for the period (pro forma 1H 2014: $4.8 million).
• The Board has approved the payment of a fully franked dividend of AU 3.00 cents per share, which equates to approximately 40% of underlying NPATA for the 6 months ended 30 June 2015.
• During the first half of the year, the group secured significant new contract wins in the Telecommunications, Government, Maritime and Energy sectors. The Maritime business grew 38% year-on-year, well above the market average growth rate, as SpeedCast continued to add vessels and grow its market share. In the Energy sector, the group continued to establish itself as a global player and a credible alternative to the current major players servicing this industry. The group’s strategy in this market is well progressed with the first significant results expecting to flow through in 2H 2015.
• During the period, SpeedCast continued to acquire companies in either key verticals and/or geographies where the Company sees long-term sustainable growth opportunities. The acquisitions of Hermes Datacommunications, Geolink Satellite Services, SAIT Communications, and the teleport and satellite services business of NewSat, were all completed in 2015. These acquisitions were all predominantly funded by debt and accretive to shareholders immediately.
• Activities are well underway to integrate these acquisitions into the broader SpeedCast Group and deliver the identified synergistic benefits in 2015 & 2016.
SpeedCast Chief Executive Officer, Pierre-Jean Beylier commented, “We continued to deliver strong financial performance with significant growth across our key operating metrics. We finished the first half with a strong backlog of work won, but not yet activated. This, coupled with the significant wins already achieved in the second half, will underpin the delivery of organic growth in the second half of 2015 and into 2016.”
“The execution of our strategy, combining both organic and acquisitive growth, continued in 1H 2015 with the acquisition of four companies, continued expansion of our business in the maritime segment, and a string of early successes in our new Energy business, which is poised to become a new major growth engine for the group,” Mr. Beylier added.