LONDON -- Avanti Communications Group (AVN) put on 13.50 pence to reach 265 pence this morning, a 5.4% increase on last night's closing price of 251.50 pence, following the release of its unaudited interim results.
Avanti confirmed that its second satellite, HYLAS 2, launched on Aug. 2 and is now fully operational, extending the company's coverage to Africa, Caucasia, and the Middle East. Avanti has been "attracting major telco customers" as a result, with five large multinational telecom companies signing contracts, showing "increasing mainstream adoption of Avanti's products."
Chairman John Brackenbury, CBE, commented:
Sales momentum continues to build very well. We operate in rapidly developing markets in Africa and the Middle East, which are showing very strong demand for our market-beating services, with several HYLAS 2 beams already fully sold.
Avanti's customers value the resilience, quality, and flexibility of our managed services. We are winning high-value-added business at expected prices in Europe as well as emerging markets. Technical milestones are now behind us and our forward visibility continues to improve. 2013 should show commercial transformation.
The satellite operator also expects to become cash flow-positive in the second half of the current financial year, boosted by a 68% increase in revenues to 8.6 million pounds, up from 5.1 million pounds in December 2011.
Avanti reported a backlog of orders amounting to 290 million pounds at the end of the six-month period, a 60% increase on the same stage last year. This helped the company hit cash at year's end of 50.7 million pounds.
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