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On 8 January 2019, Sky and Space Global Ltd (ASX:SAS), a company from the telecommunication services industries which is into the business of developing a narrow-band communication network based on nano-satellite announced it had signed two MoU agreements with reseller Extensia Bridge and ISP provider AfricaOnline.
Extensia Bridge facilitates the connectivity services through different service providers who use innovative technologies for businesses, organizations, and customers in the remote area.
Through the MoU signed between Extensia and SAS, Extensia Bridge agrees to become a key reseller of the SAS solutions across Africa and will also have to maintain a minimum number of orders for communication, Internet of Things (IoT) and M2M services (machine to machine services).
AfricaOnline Ghana is a provider of effective communication to its customer from the across the globe through its international Access Solutions. The product and services of AfricaOnline include Broadband Wireless, leased lines, MPLS, ADSL, VSAT, hosting, mail services, domains, and disaster recovery solutions. Signing MoU with AfricaOnline Ghana will enable SAS along with AfricaOnline will be exploring its proprietary connectivity network whether it can get incorporated with the services of AfricaOnline to increase reliability, accessibility, and affordability. Further, AfricaOnline Ghana forms a part of members of the iWayAfrica group of companies which is owned by Gondwana International Network. It also has subsidiaries in 10 different countries in Africa. It provides services in 34 other countries from across the world through its distributors.
Other than the signing of the MoU, SAS comes up with another update regarding GomSpace Contract. The company has signed a contract with GomSpace in October 2018. As per the agreement, GomSpace fulfilled the Sky and Spaceâs technical requirements for which SAS approved the Critical Design Review (CDR) milestone. It will be paying GomSpace an amount worth â¬1 million and will be paying the balance amount of â¬2 million in the coming week. SAS made a total amount of â¬5.5 million till now to GomSpace.
With this, there will be an establishment of a constructive and robust relationship between SAS and GomSpace.
However, these updates could not impress the shareholders and investors, which could be due to the financial performance of the company in FY2018. The earlier performance was also not up to the mark. Since SAS got listed on ASX, its performance was -74.50%. In 5 years, the performance of SAS was 6.91%. After that, there was a series of negative performance. FY2018 which ended on 30 June 2018 reports revenue of only $649 million. The company made heavy expenses in the form of fees, marketing expenses, depreciation, etc. which resulted in a net loss of $8,323,983. The company has net cash of $8,888,289 by the end of the financial year 2018.
Although the company has come up with recent updates which could improve the performance in the near future, the investors are a little skeptical based on its past performances. It might be the reason that affected the share price of SAS adversely. By the end of the trading on 8 January 2018, the share price of SAS tumbled down by 4.082%. Its closing price for the day was A$0.047 with the market capitalization of A$90.45 million.
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