Speedcast International Limited announced earnings results for the six months ended June 30, 2017. Group revenues grew 143% to USD 246.3 million for the period ended June 30, 2017, while service revenues grew 165% to USD 231.9 million. Underlying EBITDA profitability was USD 52.8 million, a 210% increase over the same period last year. EBITDA margins grew 470 basis points to 21.4% in first half 2017. Underlying NPATA, excluding non-recurring costs, was USD 15.1 million, an increase of 86% period-on-period. Strong operating cash flows, 96% of underlying EBITDA, generated as a result of improved working capital disciplines, delivered balance sheet de-leveraging in line with expectations. Net debt reduced from USD 356 million at December 31, 2016 to USD 333 million at June 30, 2017. And NPATA grew 86% to USD 15.1 million, with an NPATA per share declining slightly to USD 0.064 per share as the financial impact of the Harris CapRock acquisition flow through to the bottom line steadily. Net CapEx was slightly below the historical levels. And free cash flow, USD 29 million after the CapEx, and that helped to reduce net debt, down by USD 23 million in the period. Strong operating cash flows. Cash CapEx is substantially less than P&L depreciation and amortization.

For the year, In terms of EBITDA, the second half has started well. The company have continued the execution of synergy cost savings, a number of new wins. The company achieved in the first half, USD 53 million, at the end of June in terms of exit rate, are on the basis of USD 60 million EBITDA for the second half. The company will experience an additional USD 4 million in EBITDA from additional synergies versus the first half. And with the visibility The company have confident in its ability to achieve that and to get to USD 122 million in EBITDA for this year, in line with the market consensus. This is excluding any potential contribution from UltiSat. The company expects strong growth in 2018 in revenue and EBITDA. Net CapEx to return in the full year.

For the second half, the company will deliver USD 16 million additional service revenues and have some more CapEx in the second half, which will be slightly higher than the first half from a cash CapEx perspective.