Avanti Communications Share Discussion Threads

[terryebby] 01/8/2007 19:59

price target £7.55 ? Blimey .... this market is throwing up some weird buying opportunities.

[sirlurkalot] 01/8/2007 13:00

UK-Analyst comment on Avanti Comms:

Avanti Communications: Initiate coverage at 215.5p – target price 755p
Key Data
EPIC AVN
Share Price 215.5p
Spread 214p – 217p
Total no of shares 27.9 million + 3.2 million options
Market Cap £60.1 million
12 Month Range 197p-255p
Market AIM
Website www.avanti-communications.com
Sector Communications
Contact David Williams0207 749 1600
AIM listed Avanti Communications announced on July 16th 2007 that it had secured £32 million of debt funding which will allow it to launch its first commercial satellite, HYLAS, into space in the first quarter of 2009. Avanti announced at the same time that it had secured the rights to increased spectrum covering the Middle East, Latin America, the FSU and parts of Asia, notably India. This will allow the company and its experienced management team to launch additional satellites and by 2012 it could possibly have three in operation.Demand for satellite capacity continues to grow faster than supply and hence the cost of leasing one transponder (there are 40 on HYLAS) has risen from 2.5 million Euro in 2005 to 3.3 million euro today and further increases in leasing rates are forecast by industry experts thanks to burgeoning usage by satellite broadcasters and corporate customers who require the capacity for data transfer.The biggest obstacle to the launch of HYLAS was the ability of Avanti to secure the requisite debt funding. There were concerns that the weakness of the debt markets seen over the past few months would prove an insurmountable obstacle. However, Avanti CEO David Williams spent many years as a banker funding satellite and communications companies and was able to secure the funding needed, albeit at a cost – the interest rate on the debt is 10.5% above LIBOR. However, the HYLAS satellite is likely to be highly cash generative from launch and therefore this debt should be able to be repaid (or refinanced on far better terms) within months of the launch.Two minor obstacles remain ahead of a planned launch of HYLAS in the first quarter of 2009. The first is that Avanti will need to secure insurance for its satellite against damage on launch. We expect this to be finalised shortly. The second is the launch itself. Based on data from the past five years the chance of the satellite being damaged or lost altogether on launch is 3%. We have added additional risk weightings to our Discounted Cashflow valuation to take account of that. We have run a number of models assuming standard industry utilisation rates but varying annual leasing costs per transponder. Our base case scenario assumes annual income of just £700,000 per transponder – the level at which Avanti has pitched a small number of forward sales. The best case model assumes normal industry average rates of £2.2 million per transponder and in arriving at our mid case scenario we use a mid-case model.We assume that Avanti will launch a further two satellites by 2012 but given that no forward sales, funding or procurement has taken pl ace we have heavily risk weighted the assumed cashflow from those additional satellites – 85% of our valuation comes from the HYLAS satellite. As Avanti takes material steps towards the launch of additional satellites that would therefore result in a sharp uplift in our valuation of the group. Our base case valuation of Avanti is currently £2.99 per share, our best case valuation is £12.02 per share and our mid case valuation and target price is £7.55. At 215.5p we initiate our coverage with a stance of buy.Year to 30th June Sales(£Million) Pre-tax profits (£Million) Earnings Per Share(pence)
2005A 3.67 1.05 9.35
2006A 9.72 6.26 27.6
2007F 2.39 (3.14) (12.2)
2008E 7.26 (2.72) (10.2)
2009E 9.29 (3.29) (12.2)



Background

Avanti Communications joined AIM as part of Avanti ScreenMedia in 2004. The business as it then stood created and supplied content to screens displayed in pubs and retail outlets. The current management team, led by ex City banker David Williams, joined what was a small scale business in 2002. The screenmedia business has taken longer to develop than was anticipated at the time of the IPO and its revenues and cashflow have been unpredictable.At the time of Avanti's IPO, Williams and his team ran a small operation within Avanti Screenmedia providing consulting services to the European space industry and also re-selling wireless broadband capacity on satellite capacity owned by Intelstat In 2005 Avanti managed to secure from OFCOM, at no cost, an orbital license for the geostationary position of 33.5 degrees West (an orbit giving coverage over Europe) and with rights to 1.6 GigaHertz (GHz) of bandwith. That capacity has subsequently been increased to 2 GHz. The only condition Avanti undertook to secure this evergreen license is that its satellite must be in orbit by the end of 2012.In November 2005 Avanti announced that it had received a £24 million grant from the European Space Agency (ESA) to help build and launch its satellite. The total cost of that operation will be around £80 million of which £32 million has now been secured as debt while the remainder has already been raised as equity and via pre-sales of capacity. The cost of construction is £48 million and the satellite is being built by Astrium, a subsidiary of EADS.In late 2006 Avanti announced that it was to demerge the screen media business from its satellite operation, consultancy and networks services businesses because the small screens business prevented investors from valuing the Communications business as a pure satellite play. Arguably, if the screens business can achieve near term profitability its valuation would be reduced by the start up losses incurred by Communications. The demerger was affected by way of a distribution of 1 new share in Avanti Communications for every share hold in ScreenMedia. The two businesses are now run from separate offices and by separate management teams.On July 16th 2007, Avanti announced that it had acquired the rights to use new Ka band frequencies covering 14 GHz of spectrum covering Eastern Europe, the Middle East, Latin America and parts of Asia, notably India. It has stated explicitly that it will attempt to pre-sell part of this capacity as a platform to debt fund the construction and launch of additional satellites which, we believe, could be operational by 2012.

The Satellite market

The satellite market is not an easy one to enter. It requires specialist knowledge but – as importantly – the limited amount of spectrum available and the high capital cost of entry limit the number of players. Across Europe there are just nine operators of satellites. Demand for satellite capacity has increased significantly over the past five years driven by the growth in the number of satellite TV stations and, more importantly, by the use of satellites to transmit data both at a Governmental and a corporate level. The increased use of broadband is also creating additional demand for capacity. The finite capacity means that utilization rates have, according to SES Global – the world's largest satellite operator – risen sharply, to 78.5% in 2006.In the Americas utilization rates were just 70%. Such high utilization rates have also pushed prices higher. The average leasing rate per transponder in Europe was £2.2 million in 2006 – 200% higher than the rate in the Americas and 28% higher than the European rate in 2005. At such levels the gross margin for operators of European satellites reached 788.9%, according to SES.Looking forward the picture should improve still further. Given the 3-5 year gestation period for a new satellite launch, the industry will take some time to respond to the favourable conditions of today. The number of satellite launches in 2007 will match that in 2000 but will be below the levels seen between 1996 and 1998. The number of launches penciled in for 2008 and 2009 (including HYLAS) is forecast, by the US Government, to decline. An acceleration in demand for satellite capacity suggests that utilization rates will increase over the medium term as will leasing prices. In our models we have, conservatively, assumed a flat capacity utilization for HYLAS of 75% and no increase in pricing.

Phase I –HYLAS

The HYLAS satellite is already under construction at EADS and it should be delivered, fully tested, in the final quarter of 2008. The testing process is rigorous and involves the assembly of a duplicate satellite which is, literally, tested to destruction. The satellite will have 40 36 MegaHertz (MHz) transponders. A transponder is the electronic equipment on a satellite that receives signals from an uplink, converts signals to a new frequency, amplifies the signal, and sends it back to earth. HYLAS is designed to have a working life of 15 years and will be launched by a service provider, such as the EU funded Arianespace, Russia's Soyuz or Landlaunch One transponder has already been sold wholesale for £7 million over a 15 year lease. A further two transponders are under option for 15 years at £9 million each. A new Vice President of sales, James Taylor, started work in January of 2007 and we believe that there is a strong pipeline of potential customers. However the rates that Avanti plans to charge will not stay at the current pre-sales minimum level of £700,000. With debt funding now secured and no need for additional capital, Avanti will now be seeking contracts at closer to industry norms. Avanti has stated that the pipeline of potential pre-sales for Hylas stood, on July 16th 2007, at £110 million.The debt funding for HYLAS is seven year term debt charged at 10.5% over LIBOR which is a standard rate for pre-launch satellite finance. Although there is a cost of refinancing it before term, Avanti should be able to do so once HYLAS is generating cash. The debt is ring-fenced and secured against the satellite itself. The debt was provided by a consortium led by Avenue Capital and includes funds advised by JO Hambro, Capital Management, Caledonia Investments plc and Frost City Limited, an entity controlled by Robert Tchenguiz. As part of the package, Avenue subscribed for £4 million of shares at 200p. The ability of the Avanti management team to secure debt funding at a time when credit markets were suffering one of their biggest squeezed in a decade is a testimony to the ability of the management and the strength of the underlying proposition.Avanti will insure HYLAS against damage or destruction for £80 million. If it is forced to make such a claim – and only 3% of recent launches have resulted in such a claim arising – it will thus be in a position to repay its lenders and be left with net cash of around £50 million. Since, by launch date in the first quarter of 2009, it aims to have another two satellites under construction it should be able to secure fresh loans in order to launch one of the new satellites into orbit to replace the capacity HYLAS was meant to provide. In other words, a worst case scenario would merely delay Avanti's progress by a maximum of two years.

Additional Satellites

On July 16th 2007, Avanti announced that it had acquired the rights to use new Ka band frequencies covering 14 GHz of spectrum covering Eastern Europe, the Middle East, Latin America and parts of Asia, notably India. The biggest shortfall in capacity over projected demand is in the Middle East and over Asia and hence that is where a second and third satellite could generate the greatest margins. In the Middle East the large American military presence has created a large new need for secure data communications as well as for broadband and telephonic use of satellite capacity. In India and other parts of Asia the lack of an existing telecoms land-based infrastructure means that accelerating industrialization will inevitably lead to greater demand for satellite capacity.
Avanti will attempt to pre-sell part of this capacity as a platform to debt fund the construction and launch of additional satellites which, we believe, could be operational by 2012. In our models we are risk weighting cashflows from Avanti's second and third satellites aggressively but any announcement of pre-sales of capacity or steps towards debt funding the construction and launch of the satellites will prompt us to reduce our risk weighting and thus increase our valuation significantly. Avanti believes that, ultimately, it has the capacity to support 10 satellites within its current spectrum capacity.

Consultancy and Networks Services

Avanti's consultancy operation employs 10 members of staff and provides technology and development advice to Governments and European agencies. It is currently engaged in a number of contracts exploring new applications for satellite technology including navigation and disaster monitoring including undertaking work for the Gallileo EU satellite programme. Since a number of consultants have recently transferred over to HYLAS work the revenues from this division are likely to have fallen in the year to June 2007 from £2.5 million to £1.9 million but from this year onwards it should generate annual revenues of £2.5-£3 million and a gross profit of £1.5-£2 million. The Space Division, a separate division responsible for the procurement and development of HYLAS, currently employs 14 people. The Networks Services operation employs 21 people and provides a wholesale broadband service though satellite capacity leased from Intelstat. Essentially this allows customers living in rural areas where there is no fixed line broadband services to enjoy high speed internet access. This division now acts as a wholesaler for other satellite capacity. Clearly, as of 2009 when it can secure capacity via HYLAS its margins will improve significantly but it is still likely to have delivered revenues of £500,000 in the year to June 30th 2007, rising to £1.5 million in the current year and to c£2.5 million thereafter. It will report a small gross loss for the year just ended but generate £700,000 of gross profits this year rising by up to £500,000 a year thereafter. These two smaller operations are not critical to our valuation of Avanti although they offer clear synergies with the satellite business. It is our belief that they will within two years generate enough cash to cover the corporate overhead.

SWOT Analysis

The potential for Avanti is clear. If it can achieve utilisation rates even marginally below current industry rates in Europe and achieve current industry rates for leasing its transponder capacity then, within five years, it could be generating a gross profit of £150 million per annum from three satellites. For a company currently capitalised, on a fully diluted basis, at £67 million that would be quite an achievement.Our models assume no uplift in rental rates per transponder. The past five years and the lack of planned satellite launches before 2010 suggests that this may be overly cautious and that offers significant upside in our model. However there are risks.At an operational level there is 3% risk of equipment failure post launch. The insurance policies Avanti seeks to put in place means that this would simply delay its growth by two years per failure. But it is a clear risk.And while leasing rates may increase it is possible that an increase in the number of launches post 2010 may cause rates to soften. However the significant barriers to entering this market and the scarcity of orbital positions means that it may be difficult for new entrants to create capacity. Arguably, the simplest way for an existing larger player in this industry to increase its capacity is to buy out its smaller rivals. Our valuation contains nothing for Avanti's orbital license which has a clear value to industry competitors. Perhaps the biggest issue facing Avanti is that whilst it has achieved project finance for HYLAS it may be difficult to achieve finance, or expensive to do so, for subsequent launches. Because the debt used to launch HYLAS is ring-fenced Avanti cannot borrow against the cashflow from HYLAS until its borrowings are refinanced or repaid.

Major Shareholders

There are currently 27.9 million shares in issue and 3.2 million options with staff. 90% of those options are in an LTIP with senior managers with strike prices of £5 and £10. Of the shares currently in issue those holding more than 3% are:Caledonia Investments 22.24North Atlantic Value LLP (JO Hambro CM) 7.91Avenue Capital 7.22Kaupthing Bank Luxembourg 6.41Hermes Pensions Management 6.16David John Williams 5.17Directors Holdings 4.88

Results, Balance Sheet and Cashflow

There have been no results since the demerger. On 16th July Avanti confirmed that its results for the year to June 30th 2007 would be in line with forecast which means that it should report a pre-tax loss of £3.1 million and losses per share of 12.1p. Following the raising of £4 million at 200p we believe that Avanti has cash of £45 million.


Management

Avanti has a eight man board:David Williams, CEO aged 37. Williams joined Avanti in May 2002. Until 2000 he was an investment banker specialising in media and telecommunications finance working at Chase Manhattan and CIBC and is a member of the British Government's Space Advisory Council.John Brackenbury, Chairman, aged 71. Brackenbury joined Avanti in 2004 and has over 40 years management experience and was chairman of Pubmaster at its formation in 1991, twelve years before it was sold to Punch taverns for £1.2 billion.David Bestwick, Technical Director, aged 41. Bestwick founded the original Avanti in 1996 and joined the Avanti ScreenMedia board in 2004. He has a BSc in Physics and Astrophysics and is in charge of the consultancy operation.Nigel Fox, Finance director aged 45. Fox joined Avanti on May 10th 2007 having previously worked at the privately owned console games developer Climax. Prior to that he acted as Group Financial Controller for Arc International and as Finance Director of Ruberoid PLC.There are four additional Non-excecutive directors. Michael Desmond, aged 48, was the former CEO of ITV Broadcasting Ltd, Richard Vos, aged 61, has 36 years experience in the satellite industry and is chairman of SatCom Group Holdings. Alan Foster, aged 71, was senior partner at de Zoete & Bevan for 20 years. William Wyatt, aged 38, and is a director of Caledonia Investments.


Valuation, Forecasts and conclusion

We have valued the HYLAS project on a DCF basis assuming a launch in early 2009, utilization rates of 75% and no price inflation or deflation on leasing rates throughout its working life. We have used a discount rate of 10% but added an additional risk weighting to account for the lack of insurance for the launch and the possibility of a failed launch. As insurance is secured and the launch completed those risk weightings will be reducedWe believe that since the two smaller divisions (Network services and Consultancy) should generate broadly enough cash to cover their own costs and the corporate overhead they do not add greatly to the valuation of the group.We assume that Avanti launches a further two satellites by 2012 with the same operating risk metrics as HYLAS. But given the lack of forward orders, project finance or commissioning of these satellites, at this stage we have discounted their NPV by a further 75% at this stage. As steps are taken to convince us that they will be launched we would reduce that draconian risk weighting which would result in us increasing our group valuation dramatically.The key variable in our model is the leasing rate per transponder. Our base case model implies a rate of only £700,000 per transponder – less than 30% of current market rates prevailing in Europe. Even at such a rate we value Avanti at £2.97 per share. On current prevailing market rates that valuation increases to £12.02 per share and at our mid-price model our estimate of fair value is £7.55 a share. In a cataclysmic scenario in which HYLAS is destroyed on launch, Avanti would be left as a cash shell with (post insurance claims) net cash of £50 million. That limits the downside, the upside is clear. At 215.5p, valued at £67 million, we initiate our coverage of Avanti Communications with a recommendation of "buy" at a target price of 755p.Year to 30th June Sales(£Million) Pre-tax profits (£Million) Earnings Per Share(pence)
2005A 3.67 1.05 9.35
2006A 9.72 6.26 27.6
2007F 2.39 (3.14) (12.2)
2008E 7.26 (2.72) (10.2)
2009E 9.29 (3.29) (12.2)

[boadicea] 01/8/2007 12:25

jelignite

Extract from UK-Analyst/GE&CR -

"Valuation, Forecasts and conclusion

We have valued the HYLAS project on a DCF basis assuming a launch in early 2009, utilization rates of 75% and no price inflation or deflation on leasing rates throughout its working life. We have used a discount rate of 10% but added an additional risk weighting to account for the lack of insurance for the launch and the possibility of a failed launch. As insurance is secured and the launch
completed those risk weightings will be reduced

We believe that since the two smaller divisions (Network services and Consultancy) should generate broadly enough cash to cover their own costs and the corporate overhead they do not add greatly to the valuation of the group.

We assume that Avanti launches a further two satellites by 2012 with the same operating risk metrics as HYLAS. But given the lack of forward orders, project finance or commissioning of these satellites, at this stage we have discounted their NPV by a further 75% at this stage. As steps are taken to convince us that they will be launched we would reduce that draconian risk weighting which would result in us increasing our group valuation dramatically.

The key variable in our model is the leasing rate per transponder. Our base case model implies a rate of only £700,000 per transponder – less than 30% of current market rates prevailing in Europe. Even at such a rate we value Avanti at £2.97 per share. On current prevailing market rates that valuation increases to £12.02 per share and at our mid-price model our estimate of fair value is £7.55 a share. In a cataclysmic scenario in which HYLAS is destroyed on launch, Avanti would be left as a cash shell with (post insurance claims) net cash of £50 million. That limits the downside, the upside is clear. At 215.5p, valued at £67 million, we initiate our coverage of Avanti Communications with a recommendation of "buy" at a target price of 755p.

Year to 30th June - Sales --- Pre-tax profits - Earnings Per Share
---------------- ( £Million) -- (£Million) ------- (pence)

2005A ------------- 3.67 -------- 1.05 ------------- 9.35

2006A ------------- 9.72 -------- 6.26 ------------ 27.6

2007F ------------- 2.39 ------- (3.14) ---------- (12.2)

2008E ------------- 7.26 ------- (2.72) ---------- (10.2)

2009E ------------- 9.29 ------- (3.29) ---------- (12.2)

[End of extract]

If you want the whole article you will have to sign up to UK-Analyst.com (free).

[jelignite] 27/7/2007 21:03

Hi all

I watched the interview on sharecrazy, liked the potential especially for coverage concerning India and the Middle East, but this statement for Hylas "Avanti Communications currently provides satellite network services to customers in Europe (using leased satellite capacity) which will transfer to HYLAS on launch" this I can apperciate quick cash flow on the old or new European states, ie testing the technology on existing user profiles, but what interests me is how soon before the India and Middle East consumers can be tapped as that seems to me the most lucarative market, especially with the MOD DOD as potential customers, this all assumes the first satellite hits orbit! If it doesnt the insurance payment is equivalent to £1.60 per share, ohh thats what I would like to pay for them if I can, but I think I will buy small amounts when cash is free at prices that are good before the launch.

I think he mentioned 2 million per transponder market price atm going to have a minimum target initially of 1 mill per transponder, at 40 transponders is it 40 mil per year minus costs, what would the eps and pe be, sorry new to shares just this one has tickled my captain Kirk.

have a good weekend

jelignite

[currypasty] 27/7/2007 18:03

generating a significant and enduring increase in share price over a seven year period.


not sure we will all still be holders in 7 years

[fenseal3] 27/7/2007 17:54

Avanti Comms Group - Issue of shares
RNS Number:0452B
Avanti Communications Group Plc
27 July 2007


27 July 2007

Avanti Communications Group plc ('Avanti' or 'the Company')

Issue of Shares to the Employee Benefit Trust

In accordance with the plans set out in the Admission to AIM document Avanti
Communications Group plc (AIM: AVN) has issued 3,213,562 ordinary shares at par
('Shares') to its Employee Benefit Trust which will hold them to satisfy the
potential future exercise of options granted under various employee share option
schemes and awards made under long-term incentive plans ('LTIPs').

The Trustees of the Employee Benefit Trust have waived dividends that become due
from time to time in the future while the shares remain in the trust and these
Shares will not be entitled to voting rights unless options are exercised or
LTIP awards vest following satisfaction of performance conditions. In normal
circumstances there can only be full exercise or vesting after seven years if
those conditions have been satisfied. Options will lapse and LTIP awards will
be subject to forfeiture if performance conditions are not met. These shares
represent 10.4% of the issued share capital.

Commenting, John Brackenbury, CBE, Chairman of Avanti, said:

'The use of tax efficient equity incentive plans will reward and retain key
staff during this key development phase of the business. It will align the
interests of employees with those of shareholders in generating a significant
and enduring increase in share price over a seven year period.'


Enquiries:

Avanti Communications
Chief Executive - David Williams 020 7749 1600

Hoare Govett
Justin Jones / Hugo Fisher 020 7678 8000

College Hill
Sara Musgrave / Carl Franklin / Rozi Morris 020 7457 2049

Avanti Communications Group

Avanti Communications Group is the only licensed fixed satellite operator
headquartered in the UK (and one of only nine such groups operating in Europe).
Avanti is licensed to use approximately 18 GHz of satellite radio frequency
spectrum in several orbital positions covering the Americas, Europe, Africa, the
Middle East and Asia. The Company's first satellite called HYLAS, is fully
financed and under construction for delivery in December 2008. HYLAS uses unique
technologies to provide highly flexible and cost effective satellite capacity.

Avanti Communications currently provides satellite network services to customers
in Europe (using leased satellite capacity) which will transfer to HYLAS on
launch. Avanti sells wholesale HYLAS capacity to telecoms and media service
providers in Europe. The core applications for which Avanti expects HYLAS
capacity to be used are corporate data networks, broadband and video
distribution.

Avanti Communications Group's shares were admitted to AIM on 16 April 2007
following the de-merger of the business from Avanti Screenmedia Group plc.

About HYLAS

HYLAS uses an advanced communications payload. The design incorporates:

* Eight ka band spot beams which provide high power two-way capacity
suitable for high data telecommunications and HDTV; and
* A single Ku band European beam suitable for traditional video distribution
and data multicast services.

Unlike traditional satellites with fixed beam designs, HYLAS can dynamically
allocate power between different beams and is capable of adapting while in orbit
to use a wide range of different frequencies allowing it to be used effectively
in many different orbital positions. HYLAS is relatively inexpensive because its
flexible payload allows it to extract 40 x 36 MHz transponder equivalents from a
launch mass of just 2.5 tonnes. HYLAS has a design life of 15 years.


This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSESFMWSWSEIW

[fenseal3] 27/7/2007 17:51

Avanti Comms Group - Admission of shares
RNS Number:0442B
Avanti Communications Group Plc
27 July 2007

27 July 2007


Avanti Communications Group plc ('Avanti' or 'the Company')


Admission of Shares to Trading

Avanti Communications Group plc (AIM: AVN) announces that, pursuant to the
subscription of shares by funds managed by Avenue Capital Group, which was
announced on 16 July 2007, it has allotted 2,000,000 ordinary shares in the
Company. These shares rank pari passu in all respects with the existing issued
Ordinary Shares in the Company. Application has been made to the London Stock
Exchange for these shares to be admitted to AIM and it is expected that dealings
will commence on 30 July 2007.


Enquiries:


Avanti Communications
Chief Executive - David Williams 020 7749 1600

Hoare Govett
Justin Jones / Hugo Fisher 020 7678 8000

College Hill
Sara Musgrave / Carl Franklin / Rozi Morris 020 7457 2049


Avanti Communications Group

Avanti Communications Group is the only licensed fixed satellite operator
headquartered in the UK (and one of only nine such groups operating in Europe).
Avanti is licensed to use approximately 18 GHz of satellite radio frequency
spectrum in several orbital positions covering the Americas, Europe, Africa, the
Middle East and Asia. The Company's first satellite called HYLAS, is fully
financed and under construction for delivery in December 2008. HYLAS uses unique
technologies to provide highly flexible and cost effective satellite capacity.

Avanti Communications currently provides satellite network services to customers
in Europe (using leased satellite capacity) which will transfer to HYLAS on
launch. Avanti sells wholesale HYLAS capacity to telecoms and media service
providers in Europe. The core applications for which Avanti expects HYLAS
capacity to be used are corporate data networks, broadband and video
distribution.

Avanti Communications Group's shares were admitted to AIM on 16 April 2007
following the de-merger of the business from Avanti Screenmedia Group plc.

About HYLAS

HYLAS uses an advanced communications payload. The design incorporates:

* Eight ka band spot beams which provide high power two-way capacity
suitable for high data telecommunications and HDTV; and
* A single Ku band European beam suitable for traditional video distribution
and data multicast services.

Unlike traditional satellites with fixed beam designs, HYLAS can dynamically
allocate power between different beams and is capable of adapting while in orbit
to use a wide range of different frequencies allowing it to be used effectively
in many different orbital positions. HYLAS is relatively inexpensive because its
flexible payload allows it to extract 40 x 36 MHz transponder equivalents from a
launch mass of just 2.5 tonnes. HYLAS has a design life of 15 years.


This information is provided by RNS
The company news service from the London Stock Exchange
END

LISDGGZNVNNGNZM

[currypasty] 23/7/2007 21:43

Interview with David Williams of AVN

[sirlurkalot] 23/7/2007 08:47

Open day looks interesting. Anyone thinking of going?

[currypasty] 23/7/2007 08:01

RNS Number:6512A
Avanti Communications Group Plc
23 July 2007





23 July 2007



AVANTI COMMUNICATIONS GROUP PLC



Presentation to Investors and Stockbrokers





Avanti Communications (AIM: AVN.L), the satellite operator, will be hosting an
analyst and investor presentation on 31 July at the offices of Avanti
Communications in London.



The event will enable analysts and investors to meet with wider members of the
Avanti management team and learn more about Avanti's technology, markets and
growth strategy. Presentations will be made by David Williams (Chief Executive
Officer), Nigel Fox (Group Finance Director), David Bestwick (Technical
Director), Matthew O'Connor (Managing Director, Networks) and Richard Vos
(Non-executive Director and former Inmarsat Chairman).



The presentation will cover the following topics:



1. Overview of the satellite market

2. Satellite technology

3. Commercialisation of HYLAS

4. Growth strategy and outlook



No material new financial or trading information will be disclosed at the
presentations.



The presentation will be held at the offices of Avanti Communications Plc, 74
Rivington Street, London, EC2A 3AY from 12.30 pm and is expected to last two
hours.



To register interest and receive an invitation, please email
[e-mail].

[anusol] 22/7/2007 10:39

I don't think it matters what the satellite is used for - all that matters is that there is large & growing demand for satellite bandwidth, and Avanti is one of a very select few who can provide it. Sellers market basically - and running costs must be pretty minimal once you've stuck the dustbin in orbit?

[zcaprd7] 21/7/2007 14:27

HDTV? I can't see loads of people sticking up a second dish on the side of their houses to get some HDTV from Avanti...

[woozle1] 18/7/2007 17:24

This is a seriously derisked situation now that the debt has been sorted out, which means that insurance can now be bought. This will make marketing the "bird" much easier as I assume that insurance will cover clients who paid up front. Once all the capacity has been sold, then the next satellite can be launched. Interesting spectrum in the Middle East & Africa and reference to military. Most combat soldiers have cameras on their helmets that relays info back to HQ. In a war situation there is no wirless broadband and satellite is the only way to relay data.

All that being said, the real play here HDTV.

W

[sirlurkalot] 18/7/2007 12:07

Research on Avanti Comms available free here:

Click on blue Croesus. Rec "could be" Strong Buy.

[illiswilgig] 18/7/2007 12:04

Well, it may be this cheap again, but then again...so I have finally picked up a few. Should we be lucky enough I will add more on further drifting down.

As I see it the price drifts are caused by shifts in the perception of the balance of risks. Buying in before all the technical risks in implementation are evident (which are defined as pretty much everything on the business plan except selling the capacity) one the one hand, versus staying out and missing the boat when they annouce their lucrative pipeline of contracts on the other.

Yes I think that Mezzanine is back, but not as we know it, not as we know it.......

The Ka Band spectrum sounds good, but its been the same story for at least 20years, and the cost/performance of the ground segment has always been a problem. But it has potential and whoever is holding it at the right time will be the first to make money out of it rather than go bust.

I shall enjoy the ride here I think,

cheers

Mark

[woozle1] 18/7/2007 11:33

It'll never be this cheap again.

W

[sirlurkalot] 16/7/2007 10:14

Good news today, but the interest rate on the debt seems a bit high. I'd call that mezzanine, not debt.

[anusol] 16/7/2007 10:01

maybe off peoples radar? perhaps needs a bit of media coverage to help it along.

[woozle1] 16/7/2007 09:50

Seems pretty big news to me but no response.

W

[cestnous] 16/7/2007 07:55

Well this should perk up the price.