2018 Annual Report
Sydney, April 18, 2019 AEST (ABN Newswire) - Speedcast's (
ASX:SDA) (7SC:FRA) (SPPDF:OTCMKTS) Revenue grew 21% to USD 623.1 million, including USD 7.5m contribution from two acquisitions completed in 2018 and the full year impact of acquisitions completed in 2017.
In 2018, Speedcast achieved strong organic growth across three of its divisions (Maritime, Government, and Enterprise and Emerging Markets (EEM)), however Energy division revenue continued to decline due to ongoing delays in the offshore Energy market recovery. Despite a challenging year the Company had several significant achievements, including signing the two biggest customer contracts in company history, completing the strategic Globecomm acquisition (at an attractive valuation and doubling revenue in the high growth Government division), and establishing a back office shared service centre model including transitioning to a common ERP system.
Maritime revenue grew 10% to USD 219.7 million. This growth was driven primarily by VSAT activations in Commercial Shipping and bandwidth growth and customer wins in the Cruise business.
Energy revenue was down 14% to USD 158.3 million due to continued delays in the recovery of the offshore Energy sector. However, second half 2018 revenues were 8% higher than first half 2018 revenues.
EEM revenue grew 27% to USD 147.9 million. This strong growth was driven by the first phase of the NBN contract in Australia as well as growth in wholesale voice activity.
Government revenue was USD 97.3 million in 2018. On a pro forma basis1 this represents a 16% increase, driven primarily by growth in intelligence, surveillance and reconnaissance services and increased U.S. defence spending.
Statutory profit for the year after tax attributable to owners of the Company decreased by 69% to USD 1.9 million.
The statutory results include costs which are non-recurring in nature, such as acquisition-related costs, integration costs, accelerated amortisation of loan establishment costs and foreign exchange gains on forward contracts undertaken in relation to acquisition funding. The financial performance of the Group excluding these non-recurring factors has also been presented in this report and is identified as being the "underlying" result.
To view the full Annual Report, please visit:
http://abnnewswire.net/lnk/1H41896Y
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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