This morning Speedcast International Ltd (ASX: SDA) reported its full-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding year (all figures in US$).
- Revenue of $623m, up 21%
- Net profit after tax of $1.9m, down 68%
- Underlying profit of $17.3, down 29%
- Underlying profit before amortisation of intangibles of $48.1m, up 5%
- Underlying EBITDA of $132m, up 7%
- Final unfranked dividend of US4.8 cents per share
- Net debt increased from $338m on Dec 31 2017 to $581m mainly due to acquisitions
- Forecast for moderate revenue growth & underlying EBITDA between $160m – $171m
The Speedcast share price is up 9% to $3.65 on the back of today's update, but the stock is still down around 36% over the past year on the back of a December 2018 profit downgrade and as its debt pile grows on the back of acquisitions.
As such, today's share price rise should be taken in the context of 2018 being a tough year as its energy division in particular struggled due to "ongoing delays in the offshore energy market recovery" according to the satellite communications group's CEO.
Speedcast operates around 70 satellites and claims to serve more than 2,000 customers across 140 countries, which means it has some good diversification.
Today's market value is around $800 million, with the group's forecast for some strong EBITDA growth in 2019 likely to be impressing the market.
