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NewSat reports first profit
Satellite service provider and would-be satellite operator, NewSat ASX: NWT) has reported its first positive EBITDA of $1.6m and net profit of $26,000, on revenues of $25m.
Revenue was up 25 percent on FY09 and EBITDA a turnaround from a negative $0.993m. Last year the company reported a net loss of $2.96m. NewSat closed the year debt-free with $5m cash in the bank.
The company said growth had been driven by a focus on both expanding the range of services provided to existing high grade customers, and by it continuing to win new contracts with new corporate customers.
"During the course of FY10, NewSat has won 196 contracts in total, of which 106 were to existing customers and 90 were to new customers. These contract wins have an average annual value of $50k. This performance is supported by low levels of contract churn and continued high customer satisfaction ratings," it said.
NewSat said its core markets of resources, military and government ha all shown growth over the past year through increased demand for satellite communications, and that the financial result were starting to benefit from the operating leverage inherent in the business model.
"The infrastructure and engineering equipment at NewSat’s world-class Perth and Adelaide teleports comprise a relatively fixed cost base which allows NewSat to achieve an increasing EBITDA margin for all additional contracts added to the business.." The company says it will update the market on business progress during the first quarter of the 2011 financial year.
Newsat had no further news on its Jabiru satellite project, saying only that "Significant progress has been made in the first six months in moving the project from the research stage into a bona fide viable development program. As announced previously…Jabiru 1 is expected to be launched in FY2012-2013 and will have a 15 year life, generating revenues in excess of $US1b and profits in excess of $US500m.
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