Satellite Worldwide : Unaudited preliminary results for year ended 30 November 2016

Satellite Solutions Worldwide Group (AIM:SAT), the global communications company specialising in rural and last-mile super-fast broadband, announces its unaudited preliminary results for the year ended 30 November 2016.

• Total revenue increased by 190% to £21.5m (2015: £7.4m)
  • Recurring revenue* increased 219% to £18.1m (2015: £5.7m)
• Like for like organic revenue growth** of 11.7%
• Gross profit margin of 34% (2015: 24%)
• Underlying EBITDA*** increased to £1.24m (2015: £770k loss)
• Revenue, underlying EBITDA and cash at bank all ahead of market expectations

* Recurring revenue refers to revenue generated from broadband airtime and data contracts.

** Like for like revenue growth compares current and prior period revenue, treating acquired businesses as if they had been owned for all of both periods.

*** Underlying EBITDA is before share based payments, depreciation, intangible amortisation, acquisition costs and fund raising fees.

• Users increased over 200% to c.79k (2015: c.25k)
• Six acquisitions across five countries completed during the period, including:
  • Breiband in Norway with c.13k customers including wireless technology
  • Skymesh in Australia, with c.28k customers
  • Avonline, with c.9.5k customers, making the Company the number one provider in the UK
• Received a £12m BGF subordinated loan to fund acquisitions
• Raised £12.1m in new equity to fund acquisitions

• Signed a Virtual Network Operating ('VNO') agreement with SES Techcom Services
• Agreed a £5m revolving credit facility from HSBC to fund future acquisitions
• Acquisition of two Norwegian and one Australian wireless broadband businesses
• Like for like organic revenue growth of 12%** for first two months of FY2017

Andrew Walwyn, CEO of SSW, commented:"2016 saw turnover and customer numbers almost increased three-fold during the period, making SSW the world's largest satellite broadband provider, outside of North America. I believe that this transformational growth is just the start, as in 2017 we will continue our consolidation strategy.

"However, we are not just about an industry consolidation; like for like organic sales growth of11.7% during the year highlights our core business is robust and thriving, and this has continued into FY2017. Demand for reliable, high quality internet access in our increasingly digital world continues to grow for consumers and businesses; this inherent demand will drive our growth in the future."

"We have built a replicable and robust business and we intend to continue to acquire, invest in and integrate acquisitions into our platform as we create a world class Company."

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About SSW

Established in 2008, SSW specialises in the provision of rural and last mile broadband services with customers across 32 countries. SSW's solutions target B2C and B2B users, including products developed specifically for the broadcasting, police and military markets. 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 AIM, together with significant debt and equity raises in 2016, have transformed the Company. The three major acquisitions in 2016 of Avonline (UK), Breiband (Norway) and Skymesh (Australia) saw an increase in customers from c.25k to c.79k. The Directors believe there is a major opportunity to continue both organic and acquisitive growth throughout the fragmented European and Australasian satellite and wireless broadband markets.

Working closely with satellite owners and operators, the Company targets customers in the 'digital divide' with solutions that deliver super-fast 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.