SpeedCast embarked on a journey of global expansion in 2012 and, three years on, the company continues to change the way customers communicate globally.
2015 saw SpeedCast expand its horizons to become a truly global player as the firm continues to be the major market consolidator. The company substantially grew during 2015 and now has approximately 400 employees throughout 29 offices around the world, and also experienced growth in operational infrastructure, geographic reach and a solid increase in customer number and diversity.
Continuous Organic Growth
In 2015, SpeedCast provided vital communications solutions to more vessels and terrestrial sites than ever before, with the maritime market continuing to experience growth during the year. Gearbulk, a specialist in high quality shipping services, awarded SpeedCast a multi-year communications contract for mission-critical and social communications on 50 cargo vessels across the world. SpeedCast was also selected by Vroon to provide a Ku-band satellite service to facilitate high-performance broadband connectivity with multi-megabit speeds and a “hotel-like” user experience for clients aboard three of that company’s vital accommodation vessels.
The company was awarded one of our largest-ever satellite service agreements in the energy market segment—a landmark deal. The company was also selected by one of the most prestigious global oil and gas service companies to provide satellite services in more than 20 countries for onshore and offshore sites in Asia Pacific and Africa. ConocoPhillips also selected SpeedCast in a multi-year, multi-million dollar contract to significantly increase the primary satellite communications services provided to the ConocoPhillips operated asset located in the Bayu-Undan field in the Timor Sea. An additional agreement for the company is to provide InterOil Corporation with a range of field connectivity solutions to their 12 locations, including base camps, construction sites and remote rig sites located in the Gulf Province of Papua New Guinea.
2015 has also been a productive year for SpeedCast’s Enterprise and Emerging Markets business. Significant growth in the GSM market has been realized. SpeedCast continues to provide innovative cellular backhaul solutions for GSM operators that reach further into remote rural areas and also increases capacity in suburban or semi-rural areas. A major deal for SpeedCast in this sector was to supply a significant part of mobile operator’s backbone in Myanmar as they roll out 3G services in that country. In the broader Telecoms vertical, SpeedCast has experienced a string of successes supplying satellite services to major ISP’s and telco’s in the Pacific. There were also positive developments in the NGO and Media verticals that have contributed to SpeedCast’s success in 2015. In Myanmar, the company established a new legal entity in anticipation of new office opening in 2016.
Strong Acquisitive Growth
SpeedCast continued to execute an acquisitive growth strategy and played a major role in consolidating what remains a fragmented market. Five strategic acquisitions to strengthen capabilities to serve target priority verticals or to fill gaps in the firm’s geographic presence.
Geolink Satellite Services—SpeedCast significantly enhanced its capabilities to serve and support its customers in the African market and in providing services to the maritime sector.
Hermes Datacomms—This acquisition opened up capabilities in an additional 54 countries that represent 92 percent of the world’s oil & gas reserves and an extensive portfolio of blue chip energy customers.
NewSat Satellite + Teleport Services—Augmented SpeedCast’s already well-established Australian network with NewSat’s infrastructure assets and customer base.
SAIT Communications—Expansion of SpeedCast’s maritime business through SAIT’s long term customer relationships with large Greek shipping companies, a strong L-band expertise, and an innovative portfolio of value-added services.
ST Teleport—Further strengthens the company’s position in the maritime and energy sectors in Asia-Pacific.
In July, the company acquired two prime teleport facilities in Perth and Adelaide, both recognized as highly secure Global Access Points and support certified classified networks for the transmission of vital and sensitive information for military and government clients. Also, through the acquisitions of Hermes Datacomms and ST Teleport, SpeedCast now owns three more teleports in the United Kingdom, Kazakhstan, and Singapore.
SpeedCast also complemented its traditional geostationary satellite (GEO) based services by providing satellite services via O3b’s innovative Medium Earth Orbit (MEO) satellite constellation. Remote communities and enterprise customers now enjoy latency as low as 150 milliseconds, increased Internet speeds and improved voice and video quality.
Financial + Market Share Growth
At the half-year mark, SpeedCast revenues grew by 23 percent versus the previous year, while the maritime business grew 38 percent, well above the market average growth rate. The profitability of the business also continued to improve with EBITDA growing at a faster pace than revenue. Furthermore the significant wins achieved in the second half of the year will underpin delivery of organic growth in 2015/2016.
2015 has truly been a transformational year for SpeedCast across all aspects of our business, from the firm’s operational infrastructure, to the geographical reach as well as to the number and diversity of our customers. The foundation of this growth and success has been the company’s unwavering commitment to delivering fast and reliable communications that exceed customers’ expectations.
SpeedCast looks forward to continued growth in 2016, as we renew our commitment to driving operational excellence for our customers, wherever they are.