Presentation at Macquarie Australia Conference
London, May 4, 2017 AEST (ABN Newswire) - SpeedCast International Ltd (
ASX:SDA) is pleased to provide the Company's latest presentation at Macquarie Australia Conference.
Focus on earnings growth and shareholder returns
- Growth -where will it come from?
o Organic revenue growth from increasing demand for connectivity and positive underlying fundamentals in industries served by Speedcast
o Revenue synergies from acquisitions (new markets/services)
-Margins expansion from operating leverage & scale
o EBITDA margins have grown from 11% in 2011 to 19% in 2016
o Increasing scale has improved group's negotiating power with suppliers
o Operating leverage critical mass now reached leading to economies of scale; opexexpected to grow at a slower rate than revenues in future years
o Satellite industry entering period of oversupply; Speedcastto leverage its competitive position to optimise benefits for shareholders and customers
- Returns
o EPS growth from margin % expansion, strong cash flows and revenue growth
o Strong cash flow generation (FCF > EPS);
o Low capex requirements; ~$5M of maintenance capex p.a.
o Capex < Depreciation & amortisation
o Ability to de-leverage balance sheet quickly
o Opportunities for further accretive M&A transactions in fragmented market
Operations -competitive advantages
- Extensive expertise in all major disciplines (long tenure of all key employees in all market segments and all technologies)
- Local presence -significant people, assets, and facilities close to all customer field operations
- Global reach -All encompassing coverage for all aspects of customer service and delivery
- Expertise to support systems integration, remote IT and other value added services
- Platform to rollout large scale products on a global basis
- Scale and strategic relationships with all major vendors
o Antennas, routers, bandwidth (8500Mhz), etc.
- Network of owned teleports -control over quality/reliability of service and additional flexibility
- Sizeable global MPLS network
- Ability to attract talent given market leadership position
Speedcastis well positioned for future growth
- Dual strategy delivered strong growth in 2016 across all key financial metrics
- Strong underlying financial characteristics to drive earnings growth and increased shareholder returns
- Increasing demand for connectivity will underpin long-term growth, supported by technology developments and satellite capacity availability
- Acquisition of Harris Caprockhas positioned Speedcastas the global leader in remote communications and IT services with unique scale and capabilities, at a time when some of our key competitors are facing significant challenges
- Leadership positions in key growth markets -Energy sector expected to recover; Cruise to lead maritime growth
- Competitive advantages to gain market share -Scale; Unique capabilities and experience; Strong culture; Reputation and track record; Great customer base
- Innovation to lead to new revenue opportunities ; Expertise to expand our offering into non-connectivity services
To view the full presentation, please visit:
http://abnnewswire.net/lnk/U351VAMY
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the world's most trusted communications and IT services provider, delivering critical communications solutions to the Maritime, Energy, Mining, Media, Telecom, Cruise, NGO, Government, and Enterprise sectors. With more satellite capacity than any other provider, Speedcast enables faster, seamless pole-to-pole coverage from a global hybrid satellite, fiber, cellular, microwave, MPLS, and IP transport network with direct access to public cloud platforms. The company also integrates differentiated technology offerings that provide smarter ways to communicate and distribute content, manage network and remote operations, protect and secure investments, and improve the crew and guest experience. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries. Learn more at www.speedcast.com.
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