Sat Sol Share Discussion Threads

[dirty75] 14/1/2016 12:50

great interview, so happy to be invested here.

[iainbarclay] 14/1/2016 12:14

Here's a nice audio interview which includes an update/intro to the Company from CEO Andrew Walwyn, posted a few days after the BT RNS... (be careful - audio may start straight away!)

[varies] 12/1/2016 11:41

Vfleetsons
I increased my holding yesterday at 4.60p. There seems to be an ample supply of shares available.
dirty75
I agree with you that this is splendid news but I wonder how much competition SAT will have in this work for BT.
I bought my first shares at about 4.50p in August as a satisfied customer. My telephone line came down in November and I was very glad to have the Tooway service.

[[e-mail]] 11/1/2016 09:41

this the way forward get in early!!!!!!!!!

[dirty75] 11/1/2016 07:24

Fantastic Annoucement . So all those with no or poor broadband will be getting a letter saying pally for a voucher and receive broadband or a superior service via satelite services worldwide. If this works here in the UK then you can see other euro counties following this example, ie Poland where we an enroumous potential from our recent acquisitions.

The good news just keeps coming, outstanding work from the team at SAT.

[matis0906] 02/1/2016 19:49

hxxp://www.shardcapitalstockbrokers.com/downloads/2016SharestoWatch.pdf

[iainbarclay] 21/12/2015 10:03

Very positive news this morning - over 25000 subscribers, and acquisition of customers from two Polish companies makes us largest satellite broadband operator in Poland - the EU coverage map at shows that Poland has huge potential with lowest access to high-speed broadband in Europe.

[hydrus] 14/12/2015 09:37

After more research over the weekend I've taken a position this morning. On balance there appears to be a very clear route to get both revenues and profits to a level within two years that would mean a mcap multiples higher then today, regardless of whether the market 're-rates' this.

[hydrus] 12/12/2015 13:14

Appears to be closer to £400 looking at broker forecasts

[hydrus] 12/12/2015 13:04

Ignore my estimate I think I made an error

[hydrus] 12/12/2015 12:56

Anyone know what the average revenue per user is here I can't find it. I've estimated about £600.

[dirty75] 11/12/2015 17:33

I can see this being the only way to reach out and solve the problem speed as u can't see the cost benefit of digging up most of Europe laying cable. Look at the USA where sat broadband is almost standard. Treat Europe the same . Essential more acquisitions are made ASAP to build an even better base of customers and presence to capture all those new users out there.

[iainbarclay] 11/12/2015 15:53

I'm not sure how many EU countries currently have voucher schemes, but more and more will over the next few years - the driver being the EU goal to have high speed broadband available to all by 2020. Satellite is seen as being an essential piece of this for closing the rural gaps, and voucher schemes are an EU "approved" way of getting people on-board.

This is a pretty good starting point (as you can imagine, there is a lot of documentation) -

There's a great map of current high-speed broadband coverage by country here:
hxxp://www.cip-bresat.eu/map2.html

There is also a nice map of satellite coverage and lists of distributors by country here: hxxp://www.broadbandforall.eu

[matis0906] 09/12/2015 08:18

so one has to ask why with all this positive news flow and potential customer boost by a government backed project is the market not acknowledging this?

Any thoughts...?

[hydrus] 09/12/2015 07:54

Thanks Webpax very helpful

[dirty75] 08/12/2015 22:33

C3m cash in the bank and Zero debt in the Co so would imagine they'd get some debt before getting equity . So on that basis no dilution.

[webpax] 08/12/2015 21:24

Agreed Hydrus long term sustainability is a concern. However there maybe a parallel with mobile phones where 30 odd years on from their introduction there are still vast swathes of countryside with no signal. So perhaps it will be longer than we think before this technology is replaced?

There may also be opportunities amongst the threats such as OneWeb which has just raised $500m to launch a new range of 720 satellites which will be nearer the earth for better performance.

The OneWeb website states "...partner operators will be able to use our infrastructure with their current customers, devices and billing systems".

SAT has a proprietary technology platform (ETIP) which is a multi-lingual back office provisioning, support, marketing and billing system linked in real- time to satellite owners’ back-end systems. So it could be well positioned to plugin to the new OneWeb network and provide the service to new and existing customers?

[hydrus] 08/12/2015 20:27

Thanks webpax I agree your calculation is more accurate. I think a fund raising will be needed in maybe a year from now but perhaps it won't be that big, if as you point out they can support some future acquisitions through cash flow. Funny one this because it feels like a small market that will shrink over time with introduction of new technology but of course they could dominate and still do very well. Investors do really well in growth stocks when they a) significantly increase earnings and b) get re-rated by the market (e.g. from say a PE of 10 to 25) I wonder whether b) will happen here if the market is not deemed to be sustainable in longer term.

[webpax] 08/12/2015 19:58

Hydrus you make a good point re risk of dilution. I think they will need to raise more money at some point.

By my calculations the current major acquisitions have resulted in a cost per user of about £180 so the £3/£4m should buy more like 15-20k additional users? (Acquisition costs €900k + €825K + €1,072,500 / Users 2,300 + 5,500 + 3,500) / 1.38 to convert Euro to £.

In addition they claim to be adding circa 450 users organically per month. I'm assuming the organic growth rate should increase in line with each new acquisition.

House broker Ardens are forecasting 35-40,000 customers by 2016 y/e with an £800k pre-tax profit. Presumably once profitable they will be able to self fund expansion to some extent?

The IPO Admission document (May 2015) says 'the Directors and Proposed Directors have no current plans for raising additional capital in the near- medium term, it is possible that the Company will need to raise extra capital in the future to develop fully the Enlarged Group’s business or to take advantage of future expansion opportunities'.

The CEO owns 15.8% with some other big names on the shareholder register so presumably they will be cautious about too much dilution?

[hydrus] 08/12/2015 12:57

I'm researching this company so interested to hear holder's views on the above. There are already 300m shares in issue so I'm wary that this could increase significantly in the pursuit of growth for the company, but resulting in a relatively poor result for shareholders as EPS affected negatively by the increasing sharecount.

[hydrus] 08/12/2015 12:46

To get to 100,000 presumably they will have to raise significantly more money/shares so they can buy more companies as the £3/4m they have left won't buy much more than 10 to 15k users based on acquisitions to date is my guess. I wonder if the prospects of dilution will hold this back.

[dirty75] 08/12/2015 10:50

to add to above, sound business model when the GOV underwrite . I would imagine that a lot more Euro Countries will follow suit, and they've larger sporadic populations so need SAT BB more than UK does (or equally) . So if every Euro country follows suit, we'll have our target of 100,000 users in no time. Keep those acquisitions up SAT team.

[dirty75] 08/12/2015 10:45

Satellite dishes to boost broadband speeds in most remote areas of UK
From:
Department for Culture, Media & Sport and Ed Vaizey MP
First published:
7 December 2015
Part of:
Broadband investment
Early Christmas present for UK homes and businesses with the slowest connection speeds

Homes and businesses in some of the most remote areas of the UK are to be offered a subsidised satellite broadband connection if they are currently unable to obtain an affordable broadband service of at least 2 Mbps.
The scheme being rolled out throughout December 2015 forms part of the Government’s commitment to make sure every home and business in the UK can access speeds of at least 2 Mbps by the end of 2015. An estimated 300,000 properties across the UK will be able to make use of the new offer.
The current rollout of superfast broadband is on track to deliver coverage to 95 per cent of the UK by 2017 but Government was determined to help those with the slowest connections by providing an immediate boost to their available speeds ahead of any future improvements planned.
Digital Economy Minister Ed Vaizey said:
Our rollout of superfast broadband has already reached an additional 3.5 million homes and businesses who would otherwise have missed out. We are making tremendous progress, but it’s a massive engineering project and won’t happen overnight. This scheme offers immediate assistance to those homes and businesses in the most remote areas with the slowest speeds and is all part of our transformation of the UK’s digital landscape.
Users will be responsible for paying any remaining cost of installation and commissioning (if any), choosing the features of the satellite broadband service they require, and for paying the monthly subscription for the service they selected (for a minimum period of 12 months).
An online tool is now available to check whether the scheme has launched in your area.
Further information
• The Government recently announced plans to introduce a Universal Service Obligation (USO) – thereby giving everyone the legal right to request a connection at a minimum speed, up to a reasonable cost threshold – by 2020. The Government’s ambition is to set this at 10Mbps. The satellite offer is separate from this longer term commitment, and will deliver an immediate and welcome boost to broadband speeds for the hardest to reach places.
• The scheme to deliver the 2 Mbps Universal Service Commitment (USC) is operated by a partnership between DCMS, local bodies, BT, a number of satellite broadband retail service providers, and a number of satellite broadband platform providers.
• The initiative will be administered by local authorities who will provide a code to eligible homes and businesses upon request. They can use the code with one of a selected number of retail service providers to obtain a subsidised satellite broadband service, including a free satellite dish and installation in most cases.
• The code does not have a specific fixed value, but when used to obtain a satellite broadband service from one of the selected retail service providers, the use of the code will reduce the total cost (i.e. installation and commissioning costs plus 12 monthly subscriptions) by around £350.

[webpax] 07/12/2015 16:52

Good find iainbarclay. Avanti are certainly one of the European satellite companies SAT purchases broadband capacity from so this sounds promising.