Satellite data communications service provider Avanti Communications swung to a profit as its value of its backlog more than doubled on significant contract wins as the company made progress on its new strategy.

For 12 months to 31 December 2018, profit before tax was $83.2m compared with a loss of $77.7m last year, as revenue decreased to $56.6m from $53.5m.

But for the 18 months to 31 December, revenue increased 73.7m from $56.6m as the company strategy to restructure its balance sheet and focus on Wholesale, Government and Cellular backhaul opportunities bore fruit in the second half of 2018 with over $100 million of long term bandwidth contracts signed.

During the final 6 months of the year, the company executed against its new strategy, closing significant contracts in the wholesale and government sectors, and more than doubling the value of its backlog to $166.4m.

Costs of delivering bandwidth were around $80m for a 12 month period, but company initiated a cost-cutting programme, which was expected to reduce the costs associated with bandwidth sales by at least 15% per annum by 2020.

These measures should result in a positive earnings (EBITDA) from the bandwidth business in 2019, with further material growth in 2020, the company said.

'We can look forward to a positive future. We have an enviable network of assets, demand in our coverage is growing and the actions taken in the last 12 months to re-focus the business and to bring in new commercial talent to the executive team should bring rewards in the near term,' the company added.


At 8:03am: (LON:AVN) Avanti Communications Group PLC share price was +0.12p at 1.75p