Avanti Communications Group — Financially + Operationally Speaking…

Avanti Communications Group plc, the broadband satellite operator, has announced its Interim Results for the six months ended 31 December 2009. The key points and financial highlights include…  

• HYLAS 1 in final testing prior to shipment to launch site 
• HYLAS 2 debt and equity funding secured for launch in 2012 
• Strong demand and increase in prices for Ka band capacity
• Major progress with pre-sales on HYLAS 1 
• HYLAS 2 orders are already under negotiation 
• Turnover of £3.3m (2008: £3.2m)
• Operating loss of £0.45m (2008 loss: £1.0m)
• Cash balances of £24.7m before receipt of £89m placing proceeds

Commenting on the results, John Brackenbury CBE, Chairman said, “Our order book and sales pipeline for HYLAS 1 is strong with over 14 percent already committed for the first year of HYLAS 1 operations.  We have several new large contracts with major telecommunications customers under negotiation which should enable us to exceed our own internal targets for launch pre-sales.  The management team have also been very encouraged by the strength of inbound enquiries resulting from the announcement of HYLAS 2, particularly in the Middle East and have a number of significant contracts under negotiation for that region which we hope to announce during the current financial year.  Whilst the launch of HYLAS 1 is the major near term event, the financing of HYLAS 2 greatly strengthens Avanti’s market leadership and minimises business risks.  With an intercontinental satellite network now fully financed, I have great confidence in our ability to grow shareholder value substantially during 2010.”