Avanti borrows extra $34.5m to stay afloat
November 30, 2018
By Chris Forrester
London-based speciality satellite operator Avanti Communications issued its quarterly trading update on November 30th. The update reported that revenue for its Q3 (to September 30th) was just $10.8 million (€9.5m). This is marginally ahead of the same quarterly period last year when revenues were $9.7 million.
However, the regular reports of quarterly losses is also confirmed by comparing the same quarter-year period in 2018 and this latest trading quarter. A year ago the company reported that its cash balance at the end of the quarter was $90 million, and that its contracted backlog stood at $95.2 million.
This latest trading update shows that Avanti’s EBITDA loss was $10.6 million, and that its cash balance was just $13.3 million. Its backlog has improved to $164.6 million, and helped by a 7-year capacity agreement (with an unnamed customer) worth $84 million (or $12 million/yr) or some $3 million per quarter-year. Good though this is, the desal does not kick in for another year (“to commence in Q3 ending December 31st 2019”). Another deal was with ViaSat of California for capacity on Hylas 4 worth $10 million, over 2 years.
The cash-burn means that Avanti has had to extend its drawdown facility already in place for $132.5 million (and on which it has already drawn down $118 million) to $152.5 million, which means it has a further $34.5 million available to help fund its progress.