Speedcast Revenues Grow 21% to US$623 Million in 2018
Sydney, Australia, April 22, 2019 — Speedcast International (ASX:SDA) (FRA:7SC) (OTCMKTS:SPPDF) revenue grew 21% to US$623.1 million, including US$7.5 million contribution from two acquisitions completed in 2018 and the full year impact of acquisitions completed in 2017.
In its 2018 Annual Report, Speedcast said it achieved strong organic growth across three of its divisions (Maritime, Government, and Enterprise and Emerging Markets (EEM)), however Energy division revenue continued to decline due to ongoing delays in the offshore Energy market recovery. Despite a challenging year the company achieved several significant achievements, including signing the two biggest customer contracts in company history, completing the strategic Globecomm acquisition (at an attractive valuation and doubling revenue in the high growth Government division), and establishing a back office shared service centre model including transitioning to a common ERP system.
Maritime revenue grew 10% to US$219.7 million driven primarily by VSAT activations in Commercial Shipping and bandwidth growth and customer wins in the Cruise business.
Energy revenue was down 14% to US$158.3 million due to continued delays in the recovery of the offshore Energy sector. However, second half 2018 revenues were 8% higher than first half 2018 revenues.
EEM revenue grew 27% to US$147.9 million. This strong growth was driven by the first phase of the NBN contract in Australia as well as growth in wholesale voice activity.
Government revenue was US$97.3 million in 2018. On a pro forma basis this represents a 16% increase, driven primarily by growth in intelligence, surveillance and reconnaissance services and increased U.S. defence spending.
Statutory profit for the year after tax attributable to owners of the company decreased by 69% to US$1.9 million.
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