Avanti Communications Share Discussion Threads

[yorgi] 07/6/2010 18:29

Not a good day in general or for AVN but as TW says still a buy

[someuwin] 07/6/2010 18:24

TW at t1ps.com...

'Avanti Communications* - Another Hylas 1 Capacity Sale

Avanti Communications* (AVN) has announced a ten year Hylas 1 contract, which will generate a minimum of €12.7 million in revenue, with a new customer who will deliver Triple Play (broadband, tv and voice over IP) to consumers in the UK and Ireland. The customer is described as "an established and successful European satellite services provider with significant existing presence in the markets concerned".

As well as meaning pleasing new volume, the deal also sees Avanti providing an offering which should drive further uptake of its services. My modelling suggests that these shares should be trading comfortably in excess of £10, with even more value to be delivered down the line as perceived risks such as launch and further capacity sales are negotiated and the company continues to expand its operations. Therefore, although already significantly ahead on the 117p 2004 t1p, the stance at anywhere around the current 477.5p share price remains "buy".'

[sco77harris] 07/6/2010 12:03

yorgi i have also added, historically on good days these contracts wins have led to considerable share price gains.

[yorgi] 07/6/2010 11:46

Yes so do I, I hadn't spotted it on my first read through earlier. David Williams is very focused on AVN and determined to take AVN onto bigger things.

I have added today, I thought this would have risen further on yet another good RNS but was pleased it didn't earlier giving me the chance to add more

[someuwin] 07/6/2010 10:01

I do like the sound of 'the HYLAS fleet'. I wonder just how many satellites they are intending to put up?

"The combination of Broadband, TV and Voice over IP is a model we believe will work in all of the countries served by the HYLAS fleet, solving problems for governments and communities the World over."

[yorgi] 07/6/2010 09:14

I guess they were not expecting such a day ! Probably only a few days before yet another contract win anyway

[terryebby] 07/6/2010 08:44

AVN is the only wisp of blue on my otherwise sea of red screen. What a yukky day for good news. Surely they should have put this out a different day

[yorgi] 07/6/2010 08:15

Yet another contract win but has done nothing for the share price so far quite surprisingly

[someuwin] 07/6/2010 07:11

RNS Number : 1319N
Avanti Communications Group Plc
07 June 2010


Avanti Communications Group plc

Contract Win

Avanti (AIM: AVN), the broadband satellite operator is pleased to announce that it has signed a ten year contract for the sale of 100Mb of services on HYLAS 1 to a new customer who will deliver Triple Play (broadband, TV and voice over IP) to consumers in the UK and Ireland. In addition to high speed broadband, consumers will be able to receive a bouquet of scheduled, broadcast TV channels over HYLAS 1, in the style of current free to air terrestrial services. With volumes increasing up to 100Mb over the initial five years, the contract will generate a minimum of €12.7m in revenues for Avanti.

For commercial competitive reasons Avanti cannot disclose the customer's identity, but can confirm it is an established and successful European satellite services provider with significant existing presence in the markets concerned.

Commenting, David Williams, Avanti Chief Executive, said:

"This contract brings us important new volume in satellite broadband distribution, but its main significance is in the Triple Play offering which we believe will further drive uptake of our broadband services. The TV business is highly competitive, but the niche we will operate in with our partner is not. We will be focusing on providing a free to air broadcast television service over Ka band satellite broadband which is aimed at consumers in rural areas who will lose services as a result of the switch off of analog terrestrial television signals in the next two years. Thus, consumers will receive the traditional style of broadcast TV channels over the same dish and modem that they use to access broadband. In time, our offering may expand to include subscription channels.

"Ka band spot beam satellites are very well suited for the provision of small regional local language television platforms, as has been demonstrated in the USA. The combination of Broadband, TV and Voice over IP is a model we believe will work in all of the countries served by the HYLAS fleet, solving problems for governments and communities the World over."

---ENDS---

[jonnib] 05/6/2010 09:35

shipped in August...these things usually sit on the launch pad for a month due to testing so september, fingers crossed it will still be

[someuwin] 04/6/2010 16:20

Hylas On Schedule For August Launch...

[someuwin] 03/6/2010 22:56

The Stock Market report from UK-Analyst.com on Thursday 3rd June 2010

...


"On going progress at satellite communications firm Avanti Communications* (AVN) prompted GE&CR to repeat its 'buy' stance and increase its target price from 837p to 1,125p. Bandwith options have been signed for both the HYLAS-1 and 2 satellites, with particular bright spots being the extension to the provision of satellite broadband services from the Department of Enterprise, Trade & Investment in Northern Ireland and the award of a contract by Nottingham Scientific to support the first phase of an 'intelligent railways' project. As the research house noted, satellite spectrum is scarce, finite and highly regulated and the industry is highly capital intensive and involves relatively long lead-times, and Avanti's early move status has given it a significant advantage. Avanti pushed ahead by 13.5p to 493.5p."

[sco77harris] 03/6/2010 18:07

out of all my shares this is the one i have the most confidence in, the people i know who own shares in it, the news that comes out, its just seems to be a great oppertunity

[yorgi] 03/6/2010 15:43

All we need is the market in general not to wobble some more contract wins and once launched we should be much further on somewhere near the 800p plus I would think

[someuwin] 03/6/2010 15:38

Cheers Dolores - good to see yet another broker upgrade.

[yorgi] 03/6/2010 15:26

Having sold recently at 522p I have been glad of the oppertunity to buy back in and more on the recent dip. It is looking like steady climb up again as long as we don't get any more market scares for a while.

I'm quite sure we will have more contract wins before the September launch.

[sg31] 03/6/2010 14:41

I got it in an email this morning.

[sco77harris] 03/6/2010 14:21

when was this released?

[dolores123] 03/6/2010 13:59

Latest report from GE&CR
Avanti Communications*
Target Price increased from 837p to 1125p

Key Data
EPICAVN
Share Price480p
Spread475p - 485p
Total no of shares63,883,785
Market Cap£ 306.6 million
12 Month Range230p - 550p
MarketAIM
Websitewww.avantiplc.com
SectorMobile Telecommunications
ContactDavid Williams (Chief Executive)
020 7749 1600



There has been much activity at Avanti Communications* since our review following the company's interim results in February. In particular, the satellite broadband company has made significant contract announcements for both its Hylas 1 and 2 satellites, the former to be launched, albeit a few months later than had been hoped, by the end of the third quarter of this year and the latter also fully funded and scheduled for launch in the second quarter of 2012. These contract announcements have only added to our confidence in the future cash flows Avanti's satellite operations are poised to start delivering, cash flows which our updated modelling indicates are far from discounted in the current share price. With a target price of 1125p (previously 837p), our stance, at a current 480p, remains buy.
In relation to the Hylas 1 satellite the major contract news has been a 10th March announced deal, conditional on the completion of some asset financing by the unnamed customer, potentially worth €21.9 million in future revenues on volumes ramping up to approximately 10% of the satellite's capacity over an initial term of five years. The customer has also signed options over further bandwidth on Hylas 1 and Hylas 2. There has also been continued smaller sales of Hylas 1 capacity and services to customers around Europe and further evidence of the vast scope of Avanti's potential market has been shown by the company receiving a contract extension for the provision of satellite broadband services from the Department of Enterprise, Trade & Investment in Northern Ireland and the company's recent selection by Nottingham Scientific Ltd to provide support to the first phase of an 'I ntelligent Railways via Integrated Satellite Services project'.
In addition to the Hylas 2 option mentioned above, Avanti has also announced (6th April) that it has sold up to $17.4 million of capacity on the satellite for a term of 5-10 years to industry major Hughes Network Systems. It then followed this up with news on 27th April of the sale of an option potentially, if fully exercised, "worth up to £ 113.4 million to Avanti over a three year period". The option, valid for three years, has been agreed "with a Government customer" - Avanti receiving a £ 280,000 option fee and describing the contract price per MHz as "significantly higher than previous sales". It added the agreement also contemplates further collaboration between the two parties in relation to other capacity on the Hylas fleet.
These events demonstrate the continued strong demand for Avanti's services - and this continues to go hand-in-hand with limited supply. Satellite spectrum is scarce, finite and highly regulated and the industry is highly capital intensive and involves relatively long lead-times. As such, Avanti's early mover status in offering advanced, 'Ka band' services is proving a significant attraction.
We have updated our discounted cash flow modelling of the Hylas 1 and 2 satellites and derive (on a 10% discount rate) a current price target of 1125p for Avanti shares. We regard this as conservative, particularly as we use a capacity sales price of £ 1,500 per MHz per month which the demand-supply dynamics discussed suggest is highly cautious and which the company has already demonstrated it can considerably better despite not having launched its first satellite yet. We also expect further value-adding satellites from Avanti in future. As we advance towards the launch of Hylas 1 (the most demanding phase of testing has just been completed on schedule), the current share price looks to present an attractive opportunity to get on board what is a fast emerging intercontinental satellite player. With an updated target price of 1125p and more expected as the satellite offering continues to be developed, our view remains that, at 480p, shares in Avanti Communications remain a compelling buy.

[yorgi] 02/6/2010 16:17

Yes....but 550p again would be nice to start with !

[dolores123] 02/6/2010 15:49

Roll on 850p per share!

[yorgi] 02/6/2010 11:17

Looks like we may have bottomed so on up again slowly.....and of course September closer bye each day. I expect we shall have some contract wins before then which will all help with moving the share price on up

[dolores123] 01/6/2010 12:54

The share price is jumping around a bit today. Could be people are selling in front of the 22nd June Budget in order to crystallise their gains.

Lets hope they buy back using "bed and spouse" etc.

[philanderer] 01/6/2010 11:26

New coverage from Jefferies today.

Initiated with a 'buy' and an 850p target price.



and..

[dolores123] 01/6/2010 09:33

shazbo - my thoughts are that following the successful launch the company will be re rated and the share price will jump significantly. Could be any thing in the region of £6 to say £8 in the first few days.

After that new contracts will roll in and send the share price even higher.