Avanti Communications… Financially Speaking…

[SatNews] The Board of Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, announces its Interim Results for the six months ended 31 December 2010. The key points include…

• HYLAS 1 successfully launched and in geostationary orbit
• HYLAS 2 procurement progressing to plan
• Strong demand for Ka-band capacity
• Current order book of 229 million poundsat strong average selling prices
• Pipeline of transactions in negotiation for HYLAS 1 and 2 worth 389 million pounds
• Good progress made towards efficient financing of HYLAS 3
• Revenue of 1.2 million pounds (2009: 3.3 million pounds)
• Equity placing in July facilitated the repayment of the HYLAS 1 PIK bond
• Cash balances of 64.9 million pounds (June 2010: 34.2 million pounds)
• $140 million of HYLAS 2 debt drawn

Commenting on the results, John Brackenbury, CBE, Chairman said: “Our opportunity is not specific to one product or market, but more generally to the global growth in demand for data. The proliferation of new internet applications, particularly those which are video intensive, and new devices enabling consumers to connect to the internet are the drivers of our market. In developed markets, data demand is rising strongly and in emerging markets, vast new populations are coming to digital media for the first time. Whether it is connecting businesses, homes or government users directly, or providing wholesale network capacity for other telcos, Avanti is convinced that for a long time to come, the World’s demand for data will greatly exceed the World’s supply of telecoms capacity to transmit it, especially outside the biggest cities. We call this the “Data Crunch”. Avanti’s high throughput, high capacity satellites are in a perfect position to exploit this trend.”

Avanti sells satellite data communications services to telecoms companies which use them to supply residential, enterprise and institutional users. Avanti’s first satellite, called HYLAS 1, launched on November 26th, 2010, and is the first superfast broadband satellite launched in Europe. Avanti’s second satellite, called HYLAS 2, is on target for launch in Q2 2012 and will extend Avanti’s coverage to Africa and the Middle East.