AVN.L Share News (AVN)

Satellite operator Avanti Communications has reported widening half year losses for the six months ended December 31st after costs rose more than revenue, year-on-year. Gross losses increased from £0.2m to £2.3m, on revenues of £5.1m (2010: £1.4m). Cost of sales rose from £1.4m to £7.4m. Pre-tax loss rose slightly from £6.3m to £6.6m. The firm was naturally keen to focus on the positive, saying: "Sales momentum for HYLAS 1 and 2 is building strongly, with £8.7m of sales booked in December 2011 and £14.0m in January 2012. This gives us confidence that we will fill both satellites within the timescale announced: three years from service launch for HYLAS 1 and the reduced term of four years for HYLAS 2."The HYLAS 2 satellite is on track for delivery in June of this year, while HYLAS 3 got a boost to its funding through a share placing which raised £75m. Cash at the end of period fell to £26m, compared to £38.8m the same date a year ago. The share price fell 0.79% to 283.25p by 10:00.NR