Satellite Solutions Wldwide Grp PLC Contract Win (3589Y)

TIDMSAT

RNS Number : 3589Y

Satellite Solutions Wldwide Grp PLC

05 December 2017

Satellite Solutions Worldwide Group plc

("SSW" or the "Company")

Contract Win

Commercial Agreement with the Viasat and Eutelsat European Broadband Joint Venture

Satellite Solutions Worldwide Group plc (AIM: SAT), the global leader in delivery of alternative super-fast broadband services, has signed a sales and marketing agreement (the "Agreement") with the European broadband joint venture company established between Viasat, Inc. and Eutelsat Communications ("the JV").

In its first step toward building a retail consumer broadband business across Europe, the JV has selected SSW to assist with localised retail services and subscriber management. Specifically, SSW will provide in-language/in-market sales, installation, billing, customer care and logistics services. The JV will provide marketing support, satellite network capacity and customer premise equipment, among other ancillary requirements.

SSW and the JV will launch initial broadband service operations in Poland and Norway, with Sweden and Finland expected to launch shortly thereafter. The JV is expected to deliver the fastest available residential satellite broadband service packages in these countries. Subject to the successful progress in these first-phase countries, the parties may extend service to other markets.

Although SSW already has an existing subscriber base in some of these countries, all new subscribers in these countries will be acquired under the Agreement. SSW is therefore anticipating a material increase in customer numbers and revenue across these territories where it currently only has limited satellite broadband market share.

SSW will invest to provide additional resources in each country in anticipation of a material increase in customer numbers and sales. SSW therefore envisages an investment during the first year, as the scheme gains traction and scales up, of approximately GBP1.0m of total additional overhead, which will be partially offset by income generated from new customers. SSW expects this project will enable it to breakeven within 18 months of launch and to be earnings accretive thereafter.

Evan Dixon, Deputy CEO and Chief Marketing Officer at the Viasat/Eutelsat Joint Venture, said: "Our goal is to bring high-quality broadband to areas where traditional wired broadband providers cannot. To support our mission, SSW is a natural partner as they have a proven operation that will enable us to quickly and effectively bring better broadband options to consumers in select European countries."

Andrew Walwyn, CEO of SSW, commented: "We are delighted to be working closely with the joint venture company established by Viasat and Eutelsat. Viasat's extensive marketing experience in consumer satellite broadband in North America and Eutelsat's established European broadband business, together with SSW's deployment capability, will bring the deep expertise needed to respond to consumer expectations for a high-quality online experience."

SSW Trading Update

By way of a trading update for the financial year ended 30 November 2017, SSW is pleased to announce that it has achieved its stated target of 100,000 customers by the end of 2017 one month early. After another year of strong growth, management are comfortable SSW's results will be in line with market expectations and a more detailed trading statement will be provided in due course.

Contacts:

 
Satellite Solutions Worldwide       www.satellitesolutionsworldwide.com 
 Group PLC 
Andrew Walwyn, Chief Executive      Via Walbrook PR 
 Officer 
 
Numis Securities (Nomad and         Tel: [phone] 
 broker) 
 Oliver Hardy (Corporate Advisory) 
 James Black / Jonathan Abbott 
 (Corporate Broking) 
 
Walbrook PR (PR advisers)           Tel: [phone] 
Paul Cornelius / Nick Rome/         or [e-mail] 
 Sam Allen 
 

About SSW

Established in 2008, SSW specialises in the provision of alternative super-fast broadband for premises located in areas where there are poor wired broadband speeds. With customers in 31 countries SSW uses satellite and fixed wireless broadband technologies to connect users who are either unserved or underserved.

SSW's solutions target B2C and B2B users, and the Company has products developed specifically for the broadcasting, Police and Military markets as well as consumers. SSW operates a number of brands such as Europasat (Europe), Breiband (Nordics) and SkyMesh (Australia) and is now the fourth largest independent provider of satellite broadband internet services in the world.

The 2015 listing on the AIM market of the London Stock Exchange, together with the support from Business Growth Fund and investors in 2016 and 2017, mean the Company now enjoys strong organic growth and recurring revenues, complementing its acquisition strategy. There is a major opportunity to continue the acquisition plan throughout the fragmented European satellite and fixed wireless broadband markets and further afield.

Working closely with satellite owners and operators, SSW targets customers in the 'digital divide' with solutions that deliver up to 40 Mbps satellite based broadband services or fixed wireless to almost any premises, whether residential, commercial or industrial across Europe and Australia, irrespective of location or local infrastructure.

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This information is provided by RNS

The company news service from the London Stock Exchange

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December 05, 2017 02:00 ET (07:00 GMT)