LONDON (Alliance News) - Avanti Communications saw its pretax loss widen despite nearly doubling revenue in the half year ended December 31, 2013, as it was hit by higher sales cost and increased depreciation charges relating to a delayed satellite launch.
The satellite communications company posted a pretax loss of USD41.8 million, widened from USD22.0 million in the previous year. Pretax profit was hit by higher sales costs and an increased deprecation charge of USD22.5 million, up from USD15.4 million, due to the delayed launch of its satellite HYLAS 2. The satellite was launched in the second half of the previous year, seven months behind schedule.
Revenue rose to USD25.0 million, up from USD13.8 million in the previous year. Avanti signed 40 new contracts during the period, 14 with repeat customers and 26 with new customers.
In Avanti's Enterprise division, the company said its Satellite News Gathering product was well established with many broadcasters, and it worked on several South African events in December. Avanti is currently broadcasting the Winter Olympics in Sochi, Russia.
In its Carrier Services division, Avanti extended its business with its first Mobile Network Operator customer, and launched service for three further MNO networks during the half year. In its Government division, it won a USD15 million project to build a network in one African country, and said it expects more strong government business shortly.
In Avanti's Broadband division, the company said it saw previously weak markets in southern Europe improve, and it made installations with telecommunications companies in each of its main African markets during the period.
The company's HYLAS 3 satellite is on schedule for launch in 2016, Avanti said, and is planned to serve West Africa, although the markets could be changed.
Avanti said that its second half had begun positively, as it had won a large African government contract. Avanti was cautiously optimistic in its forecast, noting that its "business growth will remain difficult to forecast, but the growth in size and quality of the customer base and a satisfying repeat order rate gives us firm belief that we are building a profitable and enduring business."
Shares in Avanti were trading up 1.5% at 227.38 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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