LONDON (Alliance News) - Avanti Communications Group PLC on Monday said it expects to deliver double-digit revenue growth in both 2019 and 2020 following the launch of its Hylas 3 satellite.
The stock was trading 13% higher on Monday morning at 1.84 pence a share. Avanti's financial year is now the same as the calendar year.
The satellite operator reported revenue of USD73.7 million for the 18 months to the end of 2018 compared to USD56.6 million reported for the year to the end of June 2017, resulting in a pretax loss of USD6.8 million, narrowed from USD77.7 million.
The company completed a restructuring in April last year, which bore fruit as the company secures over USD100 million of long-term bandwidth contracts in the second half of 2018, it said.
Bandwidth revenue - which excludes low margin projects and equipment revenue - totalled USD41.2 million in the 18 months.
Looking ahead, Avanti expects revenue in 2019 to increase by 67% and by a further 20% in 2020. The growth is anticipated to come from government business on Hylas 4 and Hylas 3, once operational.
Hylas 2 is an Avanti satellite covering the UK, Europe, the Middle East, and eastern and southern Africa. At the end of March, Avanti said it would be launching its Hylas 3 satellite in the third quarter of 2019.
"We can look forward to a positive future. We have an enviable network of assets, demand in our coverage is growing and the actions taken in the last 12 months to re-focus the business and to bring in new commercial talent to the executive team should bring rewards in the near term," said Chief Executive Kyle Whitehill.