Avanti Communications Share Discussion Threads

[jojaken] 05/7/2014 10:07

Megabear don't know of any examples of 'giving away free'. To the best of my knowledge Avanti have denied this, but have have given 'terms of credit' to new contracts.

This has been one of criticisms of the likes of Earl as he has argued that this is tantamount to 'Free' but I think the jury is still out on this. I will be carefully watching creditors in the next results.

Given the position of the business this has always looked rather harsh, for Avanti could also be classed as a startup and this is fairly standard business for such a company. However, Avanti should now be moving to the next stage.

I will also be looking to see how quick the likes of Vodaphone are in paying up. Or will they use their size to bully the smaller Avanti.

[megabear] 05/7/2014 09:53

Going by past performance probably Avanti given a load away free to StarDSL to sign this minnow up.

[jojaken] 05/7/2014 09:39

Oh and yes StarDSL is a small company, but

1. They didn't have any problems raising cash in June.
2. Yes, they only had revenue of a few thousand Euros in 2013 but should be a few million Euros this year and they are growing at around 10% a month from just the few territories they have now and that's before these 20 new ones.
3. StarDSL have been working with Eutelsat, SES ASTRA and Avanti for it's services in Germany and Poland. (Just hadn't been announced previously)
4. But for the 20 new territories they have chosen only Avanti, not the other two.
5. Just as interesting a question is why did they chose just Avanti. Was it pricing or quality of service or some combination. Previously Avanti had said their lack of traction in new contracts was due to not discounting pricing.

[jojaken] 05/7/2014 09:22

Oh yes Tom and don't forget those contracts with those other tiddlers of the likes of Vodaphone and NTT in SA in the last year. Small, untrust worthy companies whose first payments this year should no doubtly just be discounted and added to the bad debtors!

Short memory?

A lot has happened since this time last year, Tom.

I just hope that David Williams has the sense to add greater clarity in the upcoming updates to make it harder for likes of Tom to create confusion.

[wilksey11] 04/7/2014 15:41

i notice blackrock have reduced their short slightly

[terryebby] 04/7/2014 09:12

looks like the topco bought some new companies - FIxed assets are Euro 10 million. Thats not insubstantial for a reseller that does not own its own network

[jojaken] 04/7/2014 09:04

Google translation from German is not so hot but I think you'll find StarDSL Should have had more revenue than that as according to Onvista "Overall, the number of (Enterprise) customers of the Hamburg telecommunications company thus amounted to 2,784 in May 2013 rising to 3,933 in May 2014." They also announced in June 2014 "The storage capacity for the required hardware now been extended and ordered a total of 1,200 new units."(forgive the Google translation, but I think that refers to an addition 1,200 hardrives. That's equates to quite a lot of data that would take up quite some of space in a dedicated data centre.

[jojaken] 04/7/2014 08:50

And yet it has a DAX listing! Surely StarDSL can't be that small!

[megabear] 04/7/2014 07:56

Hmmm - not sure StarDSL is that credible a customer. Certainly not for millions of dollars of business. Looks to me like StarDSL only reported €25,000 of revenue in 2013. Is Avanti up to its old tricks?

hxxp://www.stardsl.ag/downloads/Jahresabschluss_2013.pdf

[jojaken] 04/7/2014 07:40

This morning's announcement makes the 9th contract that warrants an RNS since the interims in February. That in itself is a 'J-curve'.

If nothing else this should put to bed fears that backlog wasn't growing faster revenues. We will only see when we get the update though.

[count chris] 04/7/2014 07:29

Looks like another good contract win

[revoman] 03/7/2014 18:03

Didn't they say trading was in line in that recent bond statement?

[megabear] 03/7/2014 17:26

Caledonian are about as buy and hold as you can get. So once they pull the trigger would expect that to be it and looking to off load the whole lot. Question is, if the company is poised to fill up capacity, why now?

[jojaken] 03/7/2014 11:44

That would be called 'insider trading' if the CEO knew anything as AVN will likely issue a trading update next week. Last year they issued the update for the half year on July 10th.

[akajimmy9] 03/7/2014 09:29

AA29, you're correct I just double checked. Doesn't bode well ...still going to hold though

[verymaryhinge] 03/7/2014 09:02

250ish has been both resistance and support in the past.. be interesting to see what occurs this time !

[megabear] 02/7/2014 22:04

Looks like overhang for some time

[aa29] 02/7/2014 17:41

and Caledonia's CEO is an Avanti director

[martin3042] 02/7/2014 14:50

big sell off by caledonia investments

[nugacity] 02/7/2014 14:16

Bit disappointed that the July 1st ISA top up of £3480 has not produced more buys. Was dead chuffed to get £2.50 yesterday but they are even cheaper now, though a very little. I am hopeful this was good business but time will tell - that crossbow expert :O)

[wilksey11] 01/7/2014 12:17

the moneys for hylas 3 has already been raised via a placing they raised 73 million pounds which was to fund the build+launch+ insurance,oh and if there is any over run i think esa picks up the tab.so not quite sure whats meant by 53 million dollars

[jojaken] 01/7/2014 07:26

>Rogk. The expenditure on Hylas 3 is not new or unexpected. It could well be more than $53m and I would argue that should be and is fully expected by the market. The $53m in fact suggests that Avanti has actually made a significant payment during the last half which might lead to a reduced cash balance! But as long as it is for well accounted for capital expenditure, not because of payment problems from debtors as in a year ago, I won't be overly concerned.

We can but wait and see for the next trading update in a few days!