Satellite Solutions Wldwide Grp PLC Contract Win (3589Y)
December 05 2017 - 1:00AM
UK Regulatory
TIDMSAT
RNS Number : 3589Y
Satellite Solutions Wldwide Grp PLC
05 December 2017
Satellite Solutions Worldwide Group plc
("SSW" or the "Company")
Contract Win
Commercial Agreement with the Viasat and Eutelsat European
Broadband Joint Venture
Satellite Solutions Worldwide Group plc (AIM: SAT), the global
leader in delivery of alternative super-fast broadband services,
has signed a sales and marketing agreement (the "Agreement") with
the European broadband joint venture company established between
Viasat, Inc. and Eutelsat Communications ("the JV").
In its first step toward building a retail consumer broadband
business across Europe, the JV has selected SSW to assist with
localised retail services and subscriber management. Specifically,
SSW will provide in-language/in-market sales, installation,
billing, customer care and logistics services. The JV will provide
marketing support, satellite network capacity and customer premise
equipment, among other ancillary requirements.
SSW and the JV will launch initial broadband service operations
in Poland and Norway, with Sweden and Finland expected to launch
shortly thereafter. The JV is expected to deliver the fastest
available residential satellite broadband service packages in these
countries. Subject to the successful progress in these first-phase
countries, the parties may extend service to other markets.
Although SSW already has an existing subscriber base in some of
these countries, all new subscribers in these countries will be
acquired under the Agreement. SSW is therefore anticipating a
material increase in customer numbers and revenue across these
territories where it currently only has limited satellite broadband
market share.
SSW will invest to provide additional resources in each country
in anticipation of a material increase in customer numbers and
sales. SSW therefore envisages an investment during the first year,
as the scheme gains traction and scales up, of approximately
GBP1.0m of total additional overhead, which will be partially
offset by income generated from new customers. SSW expects this
project will enable it to breakeven within 18 months of launch and
to be earnings accretive thereafter.
Evan Dixon, Deputy CEO and Chief Marketing Officer at the
Viasat/Eutelsat Joint Venture, said: "Our goal is to bring
high-quality broadband to areas where traditional wired broadband
providers cannot. To support our mission, SSW is a natural partner
as they have a proven operation that will enable us to quickly and
effectively bring better broadband options to consumers in select
European countries."
Andrew Walwyn, CEO of SSW, commented: "We are delighted to be
working closely with the joint venture company established by
Viasat and Eutelsat. Viasat's extensive marketing experience in
consumer satellite broadband in North America and Eutelsat's
established European broadband business, together with SSW's
deployment capability, will bring the deep expertise needed to
respond to consumer expectations for a high-quality online
experience."
SSW Trading Update
By way of a trading update for the financial year ended 30
November 2017, SSW is pleased to announce that it has achieved its
stated target of 100,000 customers by the end of 2017 one month
early. After another year of strong growth, management are
comfortable SSW's results will be in line with market expectations
and a more detailed trading statement will be provided in due
course.
Contacts:
Satellite Solutions Worldwide www.satellitesolutionsworldwide.com
Group PLC
Andrew Walwyn, Chief Executive Via Walbrook PR
Officer
Numis Securities (Nomad and Tel: +44 (0)20 7260 1000
broker)
Oliver Hardy (Corporate Advisory)
James Black / Jonathan Abbott
(Corporate Broking)
Walbrook PR (PR advisers) Tel: +44 (0)20 7933 8780
Paul Cornelius / Nick Rome/ or ssw@walbrookpr.com
Sam Allen
About SSW
Established in 2008, SSW specialises in the provision of
alternative super-fast broadband for premises located in areas
where there are poor wired broadband speeds. With customers in 31
countries SSW uses satellite and fixed wireless broadband
technologies to connect users who are either unserved or
underserved.
SSW's solutions target B2C and B2B users, and the Company has
products developed specifically for the broadcasting, Police and
Military markets as well as consumers. SSW operates a number of
brands such as Europasat (Europe), Breiband (Nordics) and SkyMesh
(Australia) and is now the fourth largest independent provider of
satellite broadband internet services in the world.
The 2015 listing on the AIM market of the London Stock Exchange,
together with the support from Business Growth Fund and investors
in 2016 and 2017, mean the Company now enjoys strong organic growth
and recurring revenues, complementing its acquisition strategy.
There is a major opportunity to continue the acquisition plan
throughout the fragmented European satellite and fixed wireless
broadband markets and further afield.
Working closely with satellite owners and operators, SSW targets
customers in the 'digital divide' with solutions that deliver up to
40 Mbps satellite based broadband services or fixed wireless to
almost any premises, whether residential, commercial or industrial
across Europe and Australia, irrespective of location or local
infrastructure.
# # #
This information is provided by RNS
The company news service from the London Stock Exchange
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