Avanti Communications Share Discussion Threads

[yorgi] 12/2/2013 08:04

Yes very true and no tears here for SC either.

[broadwood] 12/2/2013 08:03

Looks like some grey clouds blown away today.

[woozle1] 12/2/2013 07:59

The other negative is that there is a year on year decline in revenues. I'm assuming that this is due to a change in revenue recognition.
W

[jonnib] 12/2/2013 07:58

I thought hylas 3 is fully funded

[garymott] 12/2/2013 07:57

There has been alot of worry over H1 and the scaremongers, most notably Simon, believed it would fail commercially so I particularly like this:-

"The HYLAS 1 satellite continued to deliver excellent quality of service and is almost full in Northern Europe, with signs that markets in Southern Europe are beginning to improve."

"The HYLAS 1 network performed with 99.987% reliability in 2012. This is largely a factor of the resilience built into the ground network which is unique amongst competitors. In Europe, Avanti had success in content distribution both for digital cinema and outside broadcasting for major international media companies. We launched backhaul services for two wireless service providers, the first is for one of the largest wi-fi network operators and the second is the World's first Ka band backhaul network for a 3G/4Gmobile operator. These are powerful illustrations of our capabilities that will support us in winning more business in these markets."

[woozle1] 12/2/2013 07:53

The only negative is the lack of big increase in the revenue numbers, which indicates that HYLAS 1 is not going as fast as I'd like to see. There's still too much talk in this statement and like to see this converted into real numbers.

For the record, I am long as the valuation implies a high a option value (on the upside). To be short, you have to believe that AVN are going bust and that doesn't look likely anytime soon given the cash pile and that they are about turn cashflow positive. Although I'm not convinced that this will last long, as they will have start making large payments for HYLAS 3.

W

[divinausa1] 12/2/2013 07:52

£6 quid later this year

[anusol] 12/2/2013 07:50

interims may have been known, but surely the oreward looking updates is going to dig us out o the doldrums? AVN still undervalued

[divinausa1] 12/2/2013 07:49

Market will like those results...

not sure why anyone would be short here

[jonnyno1] 12/2/2013 07:47

Sp flat I think, no surprises either way really. J.

[anusol] 12/2/2013 07:41

Another gem in the results (not sure how much o this was already known)

"Construction of HYLAS 3 is on schedule for delivery in late 2015 and we are now actively marketing the capacity across Africa. Having made the initial capital expenditure outlay, very little will be spent on the project until financial years June 2015 and 2016 because payments to the suppliers are back-end loaded."

So little cash sucked up by HYLAS 3 over next 2 years whilst we cash in on sales & bookings in advance.


ANY PREDICTIONS ON TODAYS SP?

[jonnib] 12/2/2013 07:35

I like this bit

Customers are expressing confidence in their own growth, with most of them locking into contracts with pre-committed quarterly increases in capacity. We have already observed that some customers have been successful in growing usage faster than planned, especially in Northern Europe, North Africa, and the Middle East, and have accelerated their purchase of capacity ahead of their contractual commitments. This has been combined with growing acceptance of Ka band satellite capacity in the mainstream telecoms industry - five large multinational TMT companies signed contracts with Avanti during the period. When large companies put their resources behind roll-outs, we expect to see capacity utilisation rise sharply.

[nightspot] 12/2/2013 07:32

£40m backlog already booked for y/e 30/06/14. This is going to be a completely different company going forward. I also like the appointment of ex KPMG partner to Bod.

[waterloo01] 12/2/2013 07:26

Happy with the short Simon or have you already closed it?

[geheimnis2] 12/2/2013 07:25

That's the hat trick!

[bulltradept] 12/2/2013 07:23

The only negative is this:

"Avanti expects to become cash flow positive in the second half of the current financial year"

I.e if it doesn't.

[anusol] 12/2/2013 07:22

So thoughts on the Interims? Slightly better than expected, marginally higher sales at 8.6m and an excellent piece on selling out capacity in line with plan. Cash positive in H2. Struggling to find any negatives here....

[bulltradept] 12/2/2013 07:18

12 February 2013

Avanti Communications Group plc

Interim Results Announcement

London - 12 February 2013. Avanti Communications Group plc (AIM: AVN, "Avanti" or "the Company"), the satellite operator, has published today its unaudited interim results for the six months ended 31 December 2012.

Key developments

-- Sales momentum growing. HYLAS 2 fully operational and attracting major telco customers
-- Avanti expects to become cash flow positive in the second half of the current financial year
Operational highlights

-- HYLAS 2 launched and in commercial operation
-- All pre-launch HYLAS 2 customers activated and billed by mid-January following customer activation, testing and training across 29 countries

-- HYLAS 2 steerable beam positioned over Libya with over half of its capacity sold
-- Contracts signed with five large multinational telecoms companies showing increasing mainstream adoption of Avanti's products.

-- Valuable spectrum filings for HYLAS 2 at 31.0 East confirmed by International Telecommunications Union

Financial highlights

-- Revenues increased by 68% to GBP8.6 million (2011: GBP5.1 million)
-- Cash at year end of GBP50.7 million
-- Backlog at 31 December 2012 of firm orders of GBP290m (up 60% on December 2011)
-- Strong sales momentum - the KPI of average monthly additions to Backlog of GBP11m achieved January to December 2012

Commenting, John Brackenbury, CBE, Avanti Chairman said:

"Sales momentum continues to build very well. We operate in rapidly developing markets in Africa and the Middle East which are showing very strong demand for our market-beating services, with several HYLAS 2 beams already fully sold.

"Avanti's customers value the resilience, quality and flexibility of our managed services. We are winning high value added business at expected prices in Europe as well as emerging markets. Technical milestones are now behind us and our forward visibility continues to improve. 2013 should show commercial transformation."

[geheimnis2] 11/2/2013 22:38

Hylas3, j'assume.

[count chris] 11/2/2013 20:57

Hoping for some solid progress. Long way off my average and don't feel like buying more until we see some cash coming in. My gut feeling (and it's nothing more than that) is that H1 is going to disappoint but H2 and H3 will be fine.

[geheimnis2] 11/2/2013 19:00

good luck for tomorrow to all holders

there have been some nice updates today from two of my tech holdings today - fingers crossed for the hattrick tomorrow!

[garymott] 11/2/2013 14:22

I think we are all here waiting anxiously j. Let's hope the 'penny has dropped' with the BOD over the last few months and they have subsequently sorted out their accounting and communication strategies.