The Speedcast International Limited (ASX: SDA) share price has risen by 3.6% today after it announced some good news.
Speedcast is one of the world's largest providers of reliable, fully managed, remote communication and IT solutions.
Today, the company announced that it has extended its relationship with Royal Caribbean Cruise Lines, which is the biggest consumer of satellite bandwidth in the cruise industry. The cruiser company will be increasing the bandwidth delivered across 37 ships.
Guillermo Muniz, from Royal Caribbean's Network and Satellite Enginering, said "Speedcast has been an integral part of our long-standing efforts to implement the latest connectivity solutions that allow us to provide enhanced communications for everyone, from our guests onboard to our employees onshore.
"We are consistently raising the bar on ship innovation and increasing requirements, and Speedcast is right there with us, collaborating to make sure that we have the infrastructure and support to deliver the best experience."
Speedcast CEO, PJ Beylier, added "Over the past 11 years, we have seen tremendous growth in Royal Caribbean's business, and we look forward to helping them continue to develop their brands as they introduce new ships and look for innovative ways to enhance guest and crew experiences."
Foolish takeaway
Clearly, this is a very good deal for Speedcast. Expanding the contract with one of its biggest customers is a good move. Speedcast is trading expensively compared to its historical earnings, so I'd want to see how well it has done in this upcoming report first before buying.
