Bigblu Broadb. Regulatory News (BBB)

Satellite Solutions Worldwide Group plc

("SSW" or the "Company")

Trading Update

Strong growth during 2017 and a positive outlook for 2018 and beyond

Satellite Solutions Worldwide Group plc (AIM: SAT), the global leader in the delivery of alternative super-fast broadband services, announces its unaudited trading update for the 12-months to 30 November 2017.

Financial Highlights

During the period the Company delivered double digit like-for-like organic revenue growth1, significantly increased total revenue, recurring revenue and Average Revenue Per User ("ARPU") and completed seven acquisitions to achieve its target of 100,000 customers ahead of schedule.

Like-for-like organic revenue1 increased 12% during the period, with total revenue, including acquisitions, increasing 104% to around £44m (FY16: £22m). Recurring revenue2 increased 119% to around £40m (FY16: £18m), representing 90% of total revenue, providing improved visibility of earnings for the coming financial year.

Gross profit margin expanded to 36% (FY16: 34%) with EBITDA3 expected to be above £4.5m (FY16: £1.2m) despite continued investment in the Company's products and services to underpin future growth.

Net debt, as at the period end, increased to £12.8m (FY16: £10.2m) due to the drawdown on the Company's borrowing facilities with HSBC to fund the acquisitions, working capital and investment for growth.

Geographical and Product Expansion

The Company successfully expanded its routes to market and increased both customer numbers and ARPU during the period, strengthening its platform for profitable growth. Furthermore, the Company established direct sales channels to target Spain, Sweden and Finland as a means of further accelerating organic growth in those territories. The acquisition of Quickline further enhances the Company's fixed wireless capabilities whilst retaining its focus on rural customers.

Post Balance Sheet Events

Commercial Agreement with the Viasat and European Broadband Joint Venture

In December 2017, The Company signed a sales and marketing agreement with the European broadband Joint Venture company established between Viasat, Inc. and Eutelsat Communications ("the JV"). Specifically, SSW will provide in-language/in-market sales, installation, billing, customer care and logistics services and the JV will primarily provide satellite network capacity, marketing support and customer premise equipment. The Company expects this agreement will significantly accelerate customer growth and revenue. Since announcing this agreement, the service has already gone live across Poland, Norway, Sweden and Finland with the launch in Spain expected shortly.

Appointment of COO

In order to effectively manage the significant International growth opportunity, the Company has appointed Mark Anderson as Chief Operating Officer ("COO"), reporting directly to Andrew Walwyn, CEO. Prior to joining SSW, Mark worked for FOX Networks Group ("FOX"), part of the 21st Century Fox media company, and was directly responsible for managing activities across Europe and Africa with $300m of revenue and 11 TV channels. Whilst at FOX, Mark was responsible for launching their direct to consumer and live streaming Over the Top sports business, growing its customer base to over 50,000 within its first year.

Outlook

The successful integration of the seven earnings enhancing acquisitions completed during 2017, combined with further strong organic growth, will ensure a material increase in EBITDA for the current financial year.

The Company is now targeting further organic customer growth of over 50% by 2020 as demand for alternative super-fast broadband services increases around the world.

Over the longer-term, further Government intervention and planned satellite launches are expected to increase the Company's addressable market as technology adoption costs reduce and available satellite speeds increase.

Andrew Walwyn, CEO of SSW, commented: "We are delighted with our performance during the period as the Company successfully expanded its routes to market as well as its geographic reach. Importantly, the Company now has the foundations in place for a step change in our growth trajectory as we take advantage of technological developments and offer services on a par with traditional broadband solutions.

"The convergence of innovation within the industry, which is delivering ever increasing speeds and ongoing Government subsidies continue to improve the economics of wireless broadband as well as underpinning both the near and long-term growth in demand for our offering to rural areas and we look forward to taking advantage of the growing opportunity."

1 Like-for-like organic revenue growth compares current and prior period revenue, treating acquired businesses as if they had been owned for the relevant period in both years.

2 Recurring revenue refers to revenue generated from broadband airtime and data contracts.

3 Underlying EBITDA is before share-based payments, depreciation, intangible amortisation, acquisition costs and fund raising fees.

Contacts:

About SSW

Established in 2008, SSW specialises in the provision of alternative super-fast broadband for premises located in areas where there are poor wired broadband speeds. With customers in 31 countries SSW uses satellite and fixed wireless broadband technologies to connect users who are either unserved or underserved.

SSW's solutions target B2C and B2B users, and the Company has products developed specifically for the broadcasting, Police and Military markets as well as consumers. SSW operates a number of brands such as Europasat (Europe), Breiband (Nordics) and SkyMesh (Australia) and is now the fourth largest independent provider of satellite broadband internet services in the world.

The 2015 listing on the AIM market of the London Stock Exchange, together with the support from Business Growth Fund and investors in 2016 and 2017, mean the Company now enjoys strong organic growth and recurring revenues, complementing its acquisition strategy. There is a major opportunity to continue the acquisition plan throughout the fragmented European satellite and fixed wireless broadband markets and further afield.

Working closely with satellite owners and operators, SSW targets customers in the 'digital divide' with solutions that deliver up to 50 Mbps satellite based broadband services or fixed wireless to almost any premises, whether residential, commercial or industrial across Europe and Australia, irrespective of location or local infrastructure.