LONDON (Alliance News) - Avanti Communications Group PLC on Wednesday reported a narrowed loss in its recently-ended financial year, as revenue benefited from both recurring and non-recurring sales, which it said it expects to continue in the new financial year.
The satellite data communications company said that its pretax loss in the year ended June 30 narrowed to USD73.3 million from USD87.7 million the year before, as its revenue jumped by almost a third to USD85.2 million from USD65.6 million.
It said that revenue was boosted by a one-off capacity sale of the Artemis service provider, exceptional sales of equipment for an infrastructure project, and sales of spectrum.
"The continuing business growth rate, assuming constant currency, seen during 2015 is expected to continue in the new financial year. In addition to this, management expects core recurring revenue growth to again be augmented with non-recurring revenue. Avanti has a largely fixed cash cost base. There will be a modest increase in costs in 2016 as further investments are made in sales and marketing and ground operations ahead of the launches of HYLAS 3 and HYLAS 4," Avanti said in a statement, referring to its new satellites.
"Management expects that the combination of Avanti's strong revenue growth and largely fixed cash cost base will lead to substantial operating cash flows in the medium term," the company added.
Shares in Avanti were trading up 0.6% at 218.50 pence Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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