Speedcast International (ASX: SDA) is having its worst time on ASX as stock fell headlong 37.407% to $4.20 following half year results release on 28 August 2018.
Despite having revenue up by 24%, underlying EBITDA up by 14% and Net profit after tax up by 37% for the half year ended 30 June 2018, the remote communication and IT solutions provider Speedcast International got smashed on Tuesday. This probably occurred after missing on estimates as EBITDA margin downgraded by 180 basis points to 19.8% from 21.6% in 1H17.
However, group revenue grew 24% to US$304.9 million including 10% rise in Maritime revenue and 17% decline in Energy revenue over last six months. Underlying net profit after tax amortization (NPATA) has gone up 37% to US$21.1 million. Fully franked interim dividend of AU$2.40 cents per share was declared for the six-month period ended 30 June 2018. There has been increase in net debt by US$42 million in 1H18.
Speedcast International has inked the deal to acquire US-based remote communications and multi-network infrastructure provider, Globecomm Systems Inc. for US$135 million. Speedcast’s acquisition strategy is expected to add more muscle to their global competitive position in government, maritime and enterprise sector.
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