London-based speciality satellite operator Avanti Communications has issued a trading update for the quarter-year to September 30th 2017.
Revenue for the quarter was $9.7 million ($18 million same period a year ago) and EBITDA was negative -$3.8 million. The period end cash balance was $90.0 million ($43.1 million a year ago) and the period end backlog was a worrying $95.2 million ($276 million a year ago).
For the current fiscal year (to June 30th this year) the company is forecasting revenues of “at least” $50 million and costs of $75 million, while increasing its estimated capex.
Avanti is preparing for a proposed debt for equity swap which if accepted by bond-holders will significantly reduce its interest obligations on its current borrowings. It issued its request for Consent Solicitations to its bond-holders on January 25th, and first acceptances are expected on February 7th.
Avanti’s latest satellite, Hylas 4, is due for launch in early April aboard an Ariane 5 rocket. Hylas 4 should come into service in July and the operator says that it should be 20-25 per cent utilised by 2020.
Hylas 3, a long-awaited satellite, is further delayed and will not now launch much before the Spring of 2019.