Speedcast International Limited (ASX: SDA), a provider of remote communication and IT solutions, reported today its revenue grew 21% to US$623 million against US$514 million in 2017 while earnings before interest, tax, depreciation and amortization (EBITDA) grew 7% to US$132 million compared to US$123 million in 2017.
The company said it had strong operating cash flows with cash conversion of 91% of underlying EBITDA. In 2017, it reported cash conversion of 95% of underlying EBITDA due to a temporary working capital investment in the national broadband network project.
Net debt increased from US$388 million at 31 December 2017 to US$581 million as of 31 December 2018, primarily as a result of the additional debt incurred in connection with the Globecomm acquisition in December 2018, as well as the US$20 million payment for the UltiSat acquisition earnout in 2018.
The Speedcast board declared an unfranked final dividend of US$3.41 cents (AU$ 4.8 cents) per share for the year ended 31 December 2018
"2018 was a challenging year for Speedcast," said Pierre-Jean Beylier, CEO of Speedcast. "Although we delivered strong organic growth across three of our divisions (Maritime, Government, and EEM), our Energy division revenue continued to decline due to ongoing delays in the offshore energy market recovery.
He said 2018 was a challenging year but with significant achievements as follows:
- signing our two biggest contracts ever;
- completing the strategic Globecomm acquisition at an attractive valuation and doubling revenue in our high growth Government division, and
- establishing our shared service centre model including transitioning to a common ERP system.
Speedcast is one of the largest provider of remote communications and IT services in the world. Speedcast's fully-managed service is delivered via a leading global, multi-access technology, multi-band and multi-orbit network of 80+ satellites and an interconnecting global terrestrial network, bolstered by extensive on-the-ground local support from 40+ countries. This global "network of networks" allows customers to fully rely on the most robust, integrated infrastructure available in the market for their mission critical applications. Speedcast is uniquely positioned as a strategic business partner, tailoring communications, IT and digital solutions to meet unique customer needs and enable business transformation.
Speedcast extends its managed services through differentiated technology offerings including cyber-security, crew welfare, content solutions, data and voice applications, and network systems integration services. With a passionate customer focus and a strong safety culture, Speedcast serves more than 2,500 customers in more than 140 countries in sectors such as Maritime, Energy, Mining, Enterprise, Media, Cruise, NGOs and Government.
