newsat and nbn

Below are quotes that cover my positive current view:-


* NewSats teleports are regarded as amongst the most significant in the world and they continue to generate profitable business. These assets help set NewSat apart from other Australian based communications providers. They have been a target of international acquisition ambitions.

* NWT no debt policy and growing cash balance has placed the company uniquely amongst its competitors. NewSat still supports the largest retail digital media satellite network in the country, and its Kimberley region initiative across 16 sites.

-- Kimberley tender (won from Optus and others) was not chased so much to make money, it was a tactical move for times like now when the NBN want to know if Newsat can deliver, and they can.

* NewSat will be in a position to offer a solution via NBN or in its own right.

-- Newsat will launch whatever happens re NBN, however NBN need a fast win and "..Australia gets it's own Satellite via NBN.." has a vote winning ring about it, more so than "..NBN signs up with foriegn owned Optus as we're too much of a Banana Republic to have our own Satellite.."


* "..Broadband boss looks to space.."

He said the Government was likely to launch two satellites to service some of the 10 per cent of premises that would not be connected to fibre due to their remoteness.
Mr Quigley's emissaries are believed to have spoken with companies that already buy satellite capacity but are considering launching their own satellites.

A company called NewSat announced in September that it hoped to launch its own satellite, named Jabiru, by mid-2012, that it would cost between $300 and $500 million. NewSat chief executive Adrian Ballintine said that various governments around the world had part-funded satellite launches by private companies.

-- Newsat have in the mean time had the NBN at both Teleports for demos where they did what the competition said was not possible, they hit 12mbs in the demo between Australia and another country. (NWT can actually do 15mbs now) Note NBN now agree with Newsat the Satellite is the way to go for 10%! Cut that in half and you still get a lot of business. Kimberleys prove Newsat can deliver.

-- A solid business so NBN or other contracts are icing on the cake. Yes you can drag up the past, take DODO but that failed not because NWT did anything wrong (other than make a bad choice with DODO) rather unlike NWT DODO has a shocking customer complaint history, this may have been enough for the ABG to say no thanks big bird. Would have been a very low profit gig too, just then the AUD went south which would have hammered the margins, so it may have been a blessing in disguise.

--Back to now.

* Australia's largest independent satellite communications company is in the process of completing (--Just completed!!) another quarter of record growth.

This ensures that this half year is NewSats best ever.

With over 300 new business contracts signed, worth in excess of A$8 million, NewSat has experienced a 20% growth compared to the previous 6 months to June 2009.

NewSats previous reported 12 months saw revenue up 46%, gross profit up 76%, EBITDA up by A$5.9 million, and operating cash flow up 99%. NewSats annualised annuity contracted revenue increased to over A$20 million in this period with total new contract value up to 277% - an increase of A$12.7 million.

--I covered cap raising and consolidation in another post here is my take again:-

--Future capital raising:

--While I would rather not, NWT may offer shares to existing share holders for the purpose of removing the qualification on the accounts.

--Say less than 10% of the current capital yet it could have an enormous impact on the scope of business Newsat could tender for. Indeed the Satellite finance may hang on that point.

--If by gaining VERY LARGE contracts as a result the 10% dilution would be eaten up instantly with ANY SP rise.

-- Research:

"..many auditors are increasingly reluctant to include this disclosure in their opinions, since it is considered a self-fulfilling prophesy by some.[7] This is because a disclosure for a lack of going concern is viewed negatively by investors, lending institutions, and credit agencies, and therefore reduces the chance that the auditee may obtain the capital or borrowing it needs to survive once the disclosure is made.."


-- Newsat is seeing some traction with press & brokers, just watch this space! (pun)

:)