BACK TO PRESS RELEASES Spacecom Reports Record Revenues of $99 Million for 2023 27.03.2024 A 17% increase in the revenues of the Amos-17 satellite YoY brought in approximately 32 million dollars in the fiscal year 2023
The Company's backlog amounts to approximately $194 million, of which $55 million pertains to the Amos-17 satellite, and cash flow from current operations increased to $66 million
The company's 2023 EBITDA amounted to approximately 74.2 million dollars; the operating profit (without the depreciation of the satellites) amounted to approximately 21.7 million dollars
Following the events of October 7, the company worked to provide communication services in times of crisis, and is conducting innovative experiments with leading operators of low-earth-orbit (LEO) satellite constellations for entry into new markets and a significant business potential
Dan Zajicek, CEO of Spacecom said: 2023 reflects the continued success we are having in the implementation of our strategic business plan, increasing the growth trend while improving operational efficiency, resulting in record revenues of $99 million and EBITDA of $74 million. The continued growth trend in revenues in general and revenues of the Amos-17 satellite has contributed to strong annual results. This, along with 4iG becoming a strategic investor to the Company and the associated injection of capital, has improved the financial strength of Spacecom. 4iG, which owns 20% of the Company's shares, has submitted an updated proposal for a debt settlement while the Company has worked vigorously to continue growth and increase sales.
A central part of the Company's growth strategy are the experiments carried out in the past year in collaboration with leading companies in the field of low-orbit satellites (LEO) communication solutions, which we expect to continue in 2024 as well. We are working to transition to providing advanced communication solutions with significant business potential that combine multi-orbit satellites and are intended, among other things, to meet the needs of communication in Israel in times of emergency.
Spacecom (TASE: SCC), a satellite communications provider and operator of the Amos satellite fleet, today published its financial statements for 2023.
The Company has reported record revenues and a continued growth trend, due in part to the implementation of business activity focused and oriented to market segments in Africa which has supported an increase in sales and revenues of the advanced digital satellite Amos-17, and in part to a company-wide strategic change to transition to a satellite-based communication services provider.
During 2023, the Ministry of Communications approved an increase in the holdings of the Hungarian company 4iG in Spacecom from 9.5% to 20%. 4iG later submitted a proposal for a debt settlement, which has been discussed and is expected to be approved in the near future.
In 2023, Spacecom entered into new agreements in the amount of approximately 71 million dollars. Among other things, the Company announced that it extended the lease agreement for the Amos-7 satellite and that an addendum to the agreement with YES was incorporated allowing for YES' continued use of the Amos-7 satellite until February 28, 2025. Thus, YES' backlog of orders increased to approximately $46 million. In addition, the Company announced that it continues to develop and expand services for its customers, such as a first-time collaboration to provide distance education solutions in Africa, a successful experiment with the Israeli company Orbit for airborne terminals, and a continuation of a series of experiments in collaboration with LEO constellation providers, among others.
Summary of the main financial results for 2023:
Revenues from services amounted to approximately 99.0 million dollars in 2023, compared to approximately 97.7 million dollars in 2022. Of this amount, revenues from the Amos 17 satellite equaled to approximately 31.7 million dollars this year, compared to approximately 27.2 million in 2022, an increase of around 17 %.
In 2023, the Company registered an increase of approximately 6.2% in EBITDA (earnings before interest, taxes, depreciation and amortization and neutralizing one-time expenses), which amounted to approximately $74.2 million, compared to approximately $69.9 million in 2022. The increase in EBITDA was mainly due to an increase in revenues from the Amos 17 satellite.
Cash flow from current operations increased to $65.7 million, compared to $59.2 million in 2022, an increase of 11%.
The Company's cash and restricted cash balances at the end of 2023 are approximately $117 million.
The Company recorded a provision for impairment in the amount of 10.6 and 10.3 million dollars in the Amos 17 and Amos 4 satellites respectively. In addition, the Company recorded an increase in value between 2.9 and 0.7 million dollars in the Amos 3 and Amos 7 satellites.
The backlog of orders for 2023 totaled approximately $194 million, of which those of Amos 17 satellite amounted to approximately $55 million.
The Company's operating profit in 2023 amounted to about 21.7 million dollars, an increase of 27%, compared to about 17 million dollars in 2022. ***
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This document is a free and non-binding translation of the original Hebrew document. The Hebrew version constitutes the binding vertion and the only one having legal effect. This translation was perpered for conveinece only.
