The Speedcast International Ltd (ASX: SDA) share price fell 6% on Tuesday following the release of its full-year financial report.
Speedcast International is a satellite services company with operations stretching from Brisbane around to Perth. Ships, mining companies, Government groups and other parties can use their services for communication.
This morning, Speedcast International released its full-year financial report to the ASX. Here are some of the key news headlines from the announcement:
- Revenue of $US514 million, up 136% from last year
- Profit of $US 7 million, down 31%
- Underlying EBITDA (What the heck is EBITDA?) of $US123 million, up 195%
- A final dividend of 4.8 cents per share
Reflecting on the company’s corporate activities, the takeover of Harris Caprock in January 2017 means Speedcast International provides services to approximately 70% of cruise ships around the world.
The acquisition of UltiSat, completed in November 2017, positions Speedcast International well for services focused on Governments.
“2017 was a transformative year for Speedcast during which we firmly established our leadership position in the industry and built a unique global platform, with a stronger ability to win business,” Speedcast International CEO, Pierre-Jean Beylier, said.
“Our 2017 results demonstrate the benefits of our scale and the synergies derived from the acquisition of Harris CapRock.”
Speedcast International bought Harris CapRock in a cash deal worth $US425 million. That compares to the company’s current combined market valuation of around $1.25 billion ($US980 million).
“Speedcast’s leadership in the key verticals we serve positions the company well for good financial performance in 2018,” Mr Pierre-Jean Beylier added. “We will continue to focus on customer satisfaction, on innovation in all that we do, and on our people, who are our biggest asset.”
Today’s results announcement served also as a platform for Chief Financial Officer Ian Baldwin to announce his resignation. “I want to thank Ian for his contribution to the growth of Speedcast over the past three years and wish him all the best in the next chapter of his career,” Pierre-Jean Beylier said.
Mr Baldwin joined Speedcast International after it listed on the ASX in 2014 and helped integrate more than 10 companies.
Speedcast International shares were trading more than 6% lower at $5.22 on Tuesday.
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