Satellite telecommunications company NewSat (ASX: NWT) has recorded a major turn around in fortunes, reporting a positive EBITDA of $1.6 million for the year to 30 June 2010.
The figure represents a 258 per cent increase from the company’s $993,000 loss for the year to 30 June 2009.
Revenue for ordinary activities in the 2010 financial year was up 26 per cent to $25 million.
According to the company growth in the year was driven by an expanded range of services provided to existing customers, and a number of contract wins with new corporate customers.
During the year some 196 new contracts were won, of which 106 were with existing customers and 90 new customers – including Exxon Mobil, The Gorgon Project and a number of government and military agencies. The average value of each contract was $50,000.
Demand for satellite services had been seen across the company’s core resources, military and government markets.
The company said it had continued to progress its Jabiru-1 satellite launch program, making “significant” progress in the first half of the year from a research project to a viable development program.
The company expects the satellite, which is due to launch in financial year 2012-13, to have a 15 year life span and generate profits of $US500 million.
In February the company issued a market update that it was on track to launch the Jabiru-1 ‘next generation satellite’ in the last quarter of 2012.
During the month it also released its financial results for the six months to December 31, 2009, recording revenue growth of 21 per cent to $11.9 million for the period.
Net losses for the half year hit $509,000, a reduction of 71 per cent year on year over the results posted on December 31, 2008, which saw a net loss of $1.75 million.
In July NewSat’s chief executive officer, Adrian Ballintine, ramped up the company’s campaign to become a wholesale provider on the National Broadband Network (NBN).
Speaking to Computerworld Australia Ballintine claimed that the company would be able to deliver broadband speeds of “better than” 100 Mbps to the seven per cent of Australia not covered by the NBN’s fibre network and for an equivalent cost.