UK based satellite provider Avanti Communications Group PLC (LON: AVN) saw its share price dip sharply on Tuesday, crowned by a seemingly optimistic but hardly in-depth trading update from the Company.
Avanti Communications said that their EBITDA for the first half was ‘in line with Company budget’, and that their guidance remained positive for the full-year, with further material growth forecast in 2020.
The Group added that its backlog had increased 80% to $156.4 million at 30 June 2019, up from $87 million on-year.
Operationally, the Company said that it had successfully launched HYLAS 3 post period end, and had completed a 1.5 lien credit facility.
Avanti Communications comments
Kyle Whitehill, CEO, said,
“The steady progress in the first half of 2019 has set the foundations for the remainder of the year. We expect to see a material contribution from Government bandwidth opportunities in the second half of 2019.”
Regarding its operations, the Company’s statement read,
“Avanti connects people wherever they are – in their homes, businesses, in government and on mobiles. Through the HYLAS satellite fleet and more than 180 partners in 118 countries, the network provides ubiquitous internet service to a quarter of the world’s population.”
“Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka band spectrum in perpetuity that covers an end market of over 1.7bn people.”
“The Group has invested $1.2bn in a network that incorporates satellites, gateway earth stations, datacentres and a fibre ring.”
Since markets opened on Wednesday, the Company’s shares have dipped 17.30% or 0.11p to 0.52p a share 28/08/19 11:06 BST. Neither a r/e ratio or dividend yield are available, their market cap is £10.82 million.
Elsewhere in the tech sector, there were updates from; Maestrano Group (AIM: MNO), Vitec Group plc (LON: VTC), TT Electronics (LON: TTG), SDL plc (LON: SDL), Dialight Plc (LON: DIA) and Seeing Machines (LON: SEE).