@50Glass going by your posting history, your portfolio is 100% AIM, so pot, kettle, black?
May I refer everybody to the Q1 Trading update dated 13 November 2014 in which the CEO specifically dealt with satellite and launch costs: "We concluded the initial funding of HYLAS 4 in June, since when we have finalised the procurement contracts with Orbital Sciences and Arianespace, which will more than double our total fleet capacity and complete our sub Saharan coverage. The efficient procurement of the Satellite and Launch has generated significant savings on our original HYLAS 4 budget". So there can be no doubt that launch costs are covered in the Capex budget.
I assume you are a novice investor?
Jeffoto, I hope you got that off your chest. I fear you have taken what I written and freaked out that I would suggest there is further CAPEX to come. For clarity, I mean there has been a huge CAPEX requirement to launch these satellites. Consquently, AVN is currently riddled, and yes riddled with debt. It is not generating cash and the update on its existing capacity update does not paint the picture of clients rushing to the door (15-20%). That was versus 10-15% for the year before Unless AVN does something seriously quick to improve operating cashflow it will ultimately succumb to the iron fist of it creditors. Passed on the slow uptake in capacity, that looks more odds on that not. As such, A stonking short.
Read this, taken from Avanti website:- "Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka band spectrum in perpetuity that covers an end market of over 1.7bn people. The Group has invested $1.2bn in a network that incorporates satellites, ground stations, datacentres and a fibre ring. Avanti has a unique Cloud based customer interface that is protected by patented technology. The Group has three satellites in orbit and a further two fully funded satellites under construction." As I said there is "no huge capital requirement to fund launching satellites" as you most incorrectly assert. So please do your homework before posting blatantly incorrect comment.
I tend to agree with tyche 100. As far as I understand, AVANTI's H3 and H4 are fully financed, so no 'huge capital requirements' required. Again, my understanding from talking to the CEO is that any further satellites beyond 3 and 4 will be made and launched through Avanti, but financed by those institutions who require the bandwidth for which Avanti has licenses in place. This is a business that has required lots of capital to establish itself. It is increasingly seen as a well run venture supported amongs others, by the UK government, increasingly attracting American investors, and once H 3 and H4, are up and running, ( the latter doubling the capacity of the rest of the fleet ), generating stacks of cash. As for 'the monsoon clouds of impoverished African nations' what a load of stonking rubbish!
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