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Satellite data communications services company Avanti Communications swung to a loss on higher costs despite reporting a surge in bandwidth revenue.
For the six months ended 30 June 2019, the company reported a pre-tax loss of $68.6m compared with a profit of $242.2m a year earlier, while revenue increased to $30.2m from $25.6m a year earlier.
Cost of sales surged to $15.1m from $8.8m a year earlier.
Bandwidth revenue increased 92% to $25.3m.
Total revenues for 2019 were forecast to grow by 67% over the $53m reported for 2018, with a further uplift of at least 30% for 2020, the company said.
'The key driver to this growth is bandwidth revenue, which accounted for $31m of the $53.5m in 2018 and is now forecast to grow by 125% and 40% in 2019 and 2020 respectively,' it added.
'The steady progress in the first half of 2019 has set the foundations for the remainder of the year. We expect to see a material contribution from Government bandwidth opportunities in the second half of 2019,' said Kyle Whitehill, Avanti's CEO.
At 9:15am: (LON:AVN) Avanti Communications Group PLC share price was +0.01p at 0.63p