SpeedCast International Ltd is pleased to provide the Company's FY16 Annual Report to shareholders. The Chairman's letter is as follows:
2016 was a challenging year in terms of the overall business environment, consequently achieving organic growth proved more difficult than expected and SpeedCast grew revenue primarily as a result of four acquisitions:
NewCom International, now SpeedCast Americas (completed on 31 March 2016), offers a Miami-based teleport and office that provides SpeedCast a local presence in the global hub for the cruise industry, as well as a strong customer base and presence in Latin America: we are now truly global!
ST Teleport Pte Ltd, now SpeedCast Singapore (completed on 4 July 2016) adds a world-class infrastructure and presence in Singapore, a major hub for Maritime and Energy customers.
Completed on 31 August 2016, the acquisition of WINS Limited gives SpeedCast a foothold in Germany, a key hub for merchant shipping in Europe and a market primed for accelerated VSAT adoption, as well as a position in the fast growing cruise market in Europe.
With the closure of the Harris CapRock acquisition ("HCC"), SpeedCast is now positioned as the global leader in the satellite services industry. The combined product portfolio and scale enables us to deliver innovative new solutions and world-class support to our customers in over 100 countries globally. This expanded footprint and infrastructure, serviced by over 240 field engineers around the world, is unique and will enable SpeedCast to provide best-in-class services and support to our customers.
SpeedCast achieved double-digit growth across all P&L metrics, with especially good performance from the Maritime sector. Maritime contributed 35% of the Group's core service revenues, while delivering 57% service revenue growth driven by continuous penetration of Broadband VSAT systems and the contribution from acquisitions.
Post HCC acquisition, the Energy division is expected to represent approximately 45% of the Group's core service revenues and we believe SpeedCast is well positioned to benefit from the expected future recovery of the sector. SpeedCast is poised for future growth with a strong presence across a diversified set of industries and geographies. Our unwavering commitment to customers will continue to be at the heart of our future success.