Seanet Maritime Communications AB (publ), listed on First North, has signed an agreement with the Greek shipping company Agoudimos Lines for the delivery of mobile and Internet services on board four of the company's vessels. Seanet's target is to have at least 40 ships deployed in the coming peak season 2010, which is twice the number from the previous year. Seanet has today 49 vessels contracted.

 

The agreement with the Greek Agoudimos Lines runs until the spring of 2015 and includes supply of Seanet's GSM- and wireless Internet-service onboard the ships Ionian King, Ionian Sky, Penelope A and Penelope. The vessels operate on routes between Greece and Italy. In 2009 Seanet has been able to confirm that the larger ships in the Mediterranean generates revenues of over 300 000 SEK per month during peak season.

 

- Seanet has a competitive offer and a service portfolio that suit our passengers very well. We are sure to get many benefits from their services, says Nicole Agoudimos, Commercial Manager at Agoudimos Lines

 

Agoudimos Lines is one of the most popular ship-owners in Greece. The company has a history of 44 years within the ferry industry. The success is built on the company’s focus on security, high service grade and high quality.

 

- The agreement consolidates our already strong position in the Mediterranean. We are pleased to have the confidence of another Greek shipping company. Seanet is now growing faster than ever and just in January and February we have signed contracts with 10 new ships, which together with the roaming portfolio of over 200 active contracts will influence the results significantly compared to last year, "says Klas Lundgren, CEO Seanet

Seanet Maritime Communications AB (public), listed on First North, has expanded its contract with the Greek ferry company Ventouris Ferries with additionally one vessel. The new vessel, named Rigel, operates in the Adriatic Sea.

 

Seanet will deliver a complete communication service for GSM and Internet to Rigel. Seanet already delivers the same service facilities to Ventouris Ferries’ vessels Polaris and Seatrade.

-  GSM and Internet is very important services for our passengers. We are therefore happy to get Seanets’ service on one additional vessel, says Capt. Emanuel Petropoulos, Managing Director Ventouris Ferries.

- We have a good cooperation with Ventouris Ferries and are proud that they again have given us the confidence, says Klas Lundgren, CEO of Seanet.

 

Seanet installs and operates the mobile telephony and broadband on board cruise and merchant ships. C-Cell is Seanet´s ship-customized, small-scale GSM-environment on board for passenger ships that enable passengers to use their standard mobile phones onboard. C-Spot is Seanet’s Wi-Fi service, giving passengers the Internet- café and wireless access for laptops, with access to the Internet via satellite, on the ships.

Seanet Maritime Communications AB (publ), listed on First North, has signed an agreement with European Seaways to supply GSM and Internet-services onboard their vessel F/B Ionis. The agreement includes an initial evaluationperiod in order to validate the solution, as Seanet is providing the services with a new VSAT-antenna type.

European Seaways Inc. is a ship management company based in Athens, Greece. The company was founded in 1990 and operates two vessels on the route between Italy and Albania.

- Services like GSM and Internet will increase satisfaction among our passengers and crew. Any modern ship must have GSM and Internet today, says Ioannis Arkoumanis, Manager at European Seaways.

Seanet will deliver both GSM and Internet services to F/B Ionis. The agreement includes an initial evaluation period due to that Seanet will use a new VSAT-antenna.

- This agreement confirms Seanet’s strong establishment in Greece, as one of the most important shipping markets in the world, says Klas Lundgren, CEO of Seanet.
  
Seanet installs and operates mobile telephony and broadband on board cruise and merchant ships.

C-Cell is Seanet´s ship-customized, small-scale GSM environment for passenger ships that enables passengers to use their standard mobile phones on board. C-Spot is Seanet’s Wi-Fi service, giving passengers Internet cafés and wireless access for laptops with access to the internet on board, via satellite.

Increased availability in the Mediterranean region providing significant revenue potential

Seanet Maritime Communications AB (publ), listed on First North, announces strategic roaming agreement with Hutchison 3 Italy, Orange and Vodafone in Spain. The agreements mean that Seanet can offer its services to more or less all on board vessels with the company's systems in the Mediterranean region and it´s thus projected that Seanet’s earning potential in 2010 will increase by about 30 percent compared with 2009 in this region, which is the company's main geographical market.


Seanet launches strategic roaming agreements with operators, Hutchison 3 Italia and Orange and Vodafone in Spain. The agreements mean that Seanet now can offer its services to more or less all on board vessels with Seanet systems in the Mediterranean region.

Seanet´s primary revenue comes from active roaming relationships. By deploying agreements with Hutchison 3 Italia, Orange and Vodafone in Spain and Wind in Greece in early December, over 40 million additional mobile subscribers can call from the ship where Seanet has installed systems on board. It’s thus projected that the company's earning potential will increase by about 30 percent, compared with 2009 in the Mediterranean region.

"Our work with international roaming strives to ensure that 100 percent of all passengers on board, with his own mobile phone to use our services. With the agreements now being launched, we have basically met this target in the Mediterranean region, which is our main market currently, "says Klas Lundgren, CEO Seanet.

Seanet now, directly or indirectly have launched relations with 200 operators globally.

"We have now reached a stage where the lack of roaming relationships in Europe only in very few cases can jeopardize the ability to deal with interesting ship-owners. This, together with the industry's most modern GSM platform, makes us an attractive partner, "says Klas Lundgren, CEO Seanet.

At the Extraordinary General Meeting today in Seanet decided in summary the following:

- To change the corporate limits of the scheme's capital to a minimum of 31 200 000 SEK and up to 124 800 000 SEK and the number of shares to at least 780 000 000 shares and a maximum of 3 120 000 000 shares.

- To increase the capital by a maximum of 19 101 949.95 SEK by issue of a maximum 469 530 816 shares with a par value of approximately 0.0407 per share. The subscription price amounts to 0.06 per share. The new shares shall be subscribed with preferential rights for existing shareholders of the Company in which two (2) existing shares entitles the holder to subscribe for three (3) new shares of the Company.

- To issue a maximum of 469 530 816 warrants (Series IV) of the Company. The warrants will be signed with preferential rights for existing shareholders of the Company, each subscribed share in the previous paragraph gives signatory entitled to consideration receive one warrant. Each (1) warrant entitles the holder to subscribe for one (1) new share of the Company for cash pursuant to a subscription price of 0.06 SEK during the period 1 April 2010 until 20 September 2010. Assuming full exercise of the warrants, the Company's share capital will increase by more than 19 101 949.95 SEK by issue of a maximum 469 530 816 shares.

- The Board authorized until the next AGM, at one or more occasions, with or without preferential rights, on the increase of the share capital by issuing shares, convertible bonds and / or warrants of the Company. By decision based on the authorization to a total of more than 125 000 000 shares to be issued at the issue of new shares, the exercise of warrants and / or conversion of convertible debentures. Cash or set-off issue that occurs with preferential rights shall take place only at a price equivalent to shares, warrants and convertible bond's market value, less the amount of market discount as the Board deems necessary to carry out the issue. The reason to allow the issue with preferential rights is to be able to bring strategic partners to share ownership structure and / or strengthen the Company's financial position.

Issue (they decided issues of shares and warrants) of approximately 28.2 million SEK are entirely covered with drawing lines and underwriting. Existing shareholders of Seanet have underwriting commitments undertaken to subscribe for approximately 28 percent of the share issue equivalent to 8.0 million SEK. In addition, a guarantee consortium of existing shareholders and external investors guaranteed totaling approximately 20.2 million SEK. The issue is at 100 percent guaranteed by the underwriting and underwriting relationships, however, has the current situation is no guarantee made out to the newly issued warrants to be exercised. There is no collateral for drawing links and underwriting. In cases where those who have submitted subscription commitments or guarantees are creditors, the Board may allow them to make payment for the shares subscribed by set off claims. To the extent the Board makes such a decision is made, set-off under the conditions and rules set out in Chapter 13, § 41 Companies.

Terms of summary of the issue:
* Pre-emptive: Two (2) existing shares entitles the holder to subscribe for three (3) units. Each unit contains one (1) new share and one (1) free of charge warrant Series IV.
* Issue price: 0.06 SEK per unit.
* Record date: 23 November 2009.
* Last day of trading including entitlement to participation in the new issue: November 18, 2009
* Subscription period: November 26-December 10 2009th
* Energy unit rights: November 26-December 7 2009th
* Trading in BTU: 26 November 2009 - until the issue is registered at the Companies Registration Office.
* Subscription-emptive: Subscription for shares made during the subscription period through simultaneous cash payment. Subscription for warrants made at the subscription list.
* Without preferential subscription: Notification of subscription requests must be made during the subscription period, i.e. by 10 December 2009.

Prospectus for the invitation to subscribe for shares and warrants in the new issue is published about 19 November 2009. The prospectus of hand held at Seanet and in Stockholm, Corporate Finance. The prospectus will also be available in digital format on www.seanet.se and www.stockholmcorp.se.

Enhanced position and platform for potential income

 

 

 

Enhanced position and platform for potential income

 

Operations Summary

 

·         Sales for the third quarter increased to MSEK 5.1 (MSEK 1.1)

·         Net income for the quarter amounted to MSEK -1.5 (MSEK -9.1) before depreciation and financial items (EBITDA) and MSEK -3.0 (MSEK -16.0) before tax

·         Sales for the first nine months grew to MSEK 7.4 (MSEK 1.2)

·         Net income for the first nine months amounted to MSEK -14.3 (MSEK -20.9) before depreciation and financial items (EBITDA) and MSEK -19.5 (MSEK -28.0) before tax

·         Seanet has implemented a reduction in share capital during the period

Significant events after end of period

·         Board of Seanet has decided to convene an extraordinary general meeting on 13 November, and which propose a decision the issue of MSEK 28.1 with preferential rights for existing shareholders. The issue is guaranteed in full

·         Seanet have moved to more suitable premises and thus reduced the rent by half

 

 

 

 

 

 

 

For further information:
Klas Lundgren, CEO Seanet, mobile 0735-34 60 78

Also visit www.seanet.se

_________________________________________________________________________________________

 

Seanet is a global telecom operator at sea. Seanet installing and deploying mobile and broadband on board the ferry, cruise and merchant ships. Seanet Maritime Communications AB (publ) is listed on First North, which is an alternative market operated by NASDAQ OMX. Companies whose shares traded on First North are not obliged to follow the same rules as listed companies, but a smaller comprehensive set of rules adapted to predominantly smaller companies and growth companies. Certified Adviser and liquidity is Mangold Brokerage

 

 

President's Message

Developments during the third quarter has been very valuable to Seanet in many ways. We have moved forward our positions further and demonstrated that our business model works by delivering a positive cash flow during some of the summer months. With a new GSM system in place, new strategic agreements, improved reliability of our satellite antennas, obtained contracts and this issue of shares, we have the right conditions to reach profitability in 2010.

Subsequent to our new GSM system, supplied by Ericsson, which was fully installed and put into service by the end of June and all ships in our fleet has been installed base stations, the telecommunications and data traffic functioned satisfactorily and  gradually improved. There is a substantial difference with the previous year, when our old system worked unsatisfactory. The vastly improved quality has resulted in significantly longer call times and therefore higher revenues. Revenues for the first nine months is six times higher than in 2008.

Parallel to this, we have increased our roaming portfolio and currently has over 200 launch contracts. Of these, nearly 60 our own relationships, and the remainder is provided via our roaming partners, Syniverse. At the end of 2009 we will have launched virtually every strategic roaming agreements needed to reach nearly 100
percent coverage in the Mediterranean region. In the Baltic Sea, we have already had almost all the agreements in place since earlier this year.

Cooperation with Belgacom has also improved our delivery capability, and through this cooperation we have implement a more efficient deployment of our roaming agreements. Furthermore, also the cooperation with Globe Telecom in the Philippines, which was signed in June this year, has given us the opportunity to address the merchant sector. This market segments will give us the potential to reach significant revenue all year round.

Our focus on improving quality and cost effectiveness continues. This, combined with that we also deploying additional strategic roaming agreements in the winter, means that many more subscribers than previous year will be able to use Seanet services. We estimate that about 30 percent more passengers can call and be called on board "our" ship already installed in 2010, compared to 2009.

Installations on board "our" ship continues throughout the winter, to reach the target of at least 40 ships in operating with the GSM and Internet Systems in April next year.

Moreover, negotiations are underway with satellite partners in order to optimize the satellite capacity to ensure efficient and safer delivery to our fleet. Since the supply of satellite capacity is an area where we can improve ourselves, we hope that in this way to reduce our costs per ship, and also avoid unnecessary capital deplyed. Moreover, these negotiations are crucial to how we manage in the major trading segment with our supply of simpler coverage solutions on board merchant vessels. Closer cooperation with one or more of the established satellite operators, which already provides satellite capacity for thousands ships, allowing quicker we can reach a much larger market than what we alone can achieve under for our organization.

Overall, Seanet improved its market position and we are now one of the big four
providers in the segment. Of these, we have the most modern GSM system and a portfolio of partners, enabling us to invest for the full introduction in 2010.

Klas Lundgren
Managing Director

 

 

 

 

 

 

Business Review July-September 2009

Sales and earnings

Turnover amounted to MSEK 5.1 (MSEK 1.1) for the third quarter and MSEK 7.4 (MSEK 1.2) for the first nine months

Operating expenses amounted to MSEK 6.6 (MSEK 10.2) for the third quarter and MSEK 21.8 (MSEK 22.1) for the first nine months

Operating depreciation and amortization amounted to MSEK 1.1 (MSEK 6.9) for the third quarter and MSEK 3.2  (MSEK 7.0) for the year first nine months

Operating net financial items amounted to MSEK -0.4 (MSEK -0.00) for the third quarter and MSEL -2.0 (MSEK

-0.05 million) for the first nine months

Operating income before depreciation and financial items (EBITDA) amounted to MSEK -1.5 (MSEK -9.1) for the third quarter and MSEK -14.3 (MSEK -20.9) for the first nine months

Operating profit before tax amounted to MSEK -3.0 (MSEK -16.0) for the third quarter and MSEK -19.5 (MSEK

-28.0 million) for the first nine months

Earnings per share

Earnings per share amounted to SEK -0.01 (SEK -0.31) for the third quarter and SEK -0.10 (SEK -0.89) for the first nine months.

Investments

The company's investments during the third quarter of distributed as follows:

Tangible fixed assets                     MSEK 0.2 (MSEK 0.9)
Intangible assets                             MSEK 0.0 (MSEK 0.9)

Cash flow and financial position

Seanet cash flow amounted to MSEK 1.9 (MSEK -8.3) for the third quarter.

Liquid funds at the report period amounted to MSEK 2.3 (MSEK 1.3).

An Extraordinary General Meeting of September 30 decided to reduce the share capital by 18 567 426
SEK to 12 734 633 SEK. This impairment loss was against what was the company's accumulated loss (Retained results and year) at the time the notice of the meeting.

Staff

The number of employees at period end was 12 people (20). The company has in November moved to smaller and more suitable premises, which means that rental cost is reduced by half.
 

Risks

For an explanation of Seanet risk factors refer to page 7 of the Company's most recent prospectus of June 2009.

 

 

 

Forthcoming reports

Year-end             February 26, 2010

 

The Board and the CEO certify that the interim report gives a true and fair view of the company operations, financial position and results and describes significant risks and uncertainties that the company stands view.

 

Solna, Sweden November 13, 2009

Board,

Håkan Jansson, chairman

Viesturs Vucins

Ulf Löfven
Patrik Salen

Gillis Cullin

Seanet Maritime Communications AB (publ)

This report has not been audited by the auditors.

Certified Advisor and liquidity of Seanet on First North is Mangold Fondkommission AB.

Seanet Maritime Communications AB (publ)
Org.nr 556694-4954
Vretenvägen 4
171 54 Solna

 

The Board of Seanet Maritime Communications AB (publ) ( "Seanet") has today decided to convene an Extraordinary General Meeting November 13, 2009 under a separate press release today. To the Extraordinary General Meeting, the Board suggested decision on a new issue of SEK 28.1 million with preferential rights for existing shareholders. The new share issue aim at strengthening the company´s capital base and thereby ensure Seanet's ability to install and deploy a larger number of new vessels. The issue is guaranteed in full through subscription commitments from existing shareholders as well as underwriting from existing shareholders and external investors.

The proposal in brief:
• New share issue with preferential rights for approximately SEK 28.1 million
• Two old shares will be eligible for three new shares
• Exercise price of 0,06 SEK per share
• For each subscribed share obtained free of charge one warrant
• Upon full exercise of the warrants are added to Seanet additional approx. SEK 28.1 million before issue costs
• Subscription period for the shares at between 26 November to 10 December 2009
• The issue is Attaining assured through subscription commitments and underwriting
 
Given that Seanet during the summer of 2009 has proven its business model, the Seanet Board will ensure the Company and it´s  ability to install and deploy a larger number of new ships for the next season. Therefore, the Board proposes this new issue.
 
The Ericsson system is fully installed and working properly since the end of June 2009. The number of active roaming agreements are at present 200, of which 54 are Seanet own. Seanet has signed a strategic cooperation agreement with Belgacom, as International Carrier, and Globe Telecom on prepaid SIM cards. Through cooperation with Globe Telecom, Seanet can offer seafarers on board more attractive call tariffs. All this means that Seanet now works as a full maritime operator.
 
With the above-mentioned capital gain, the company will be able to deploy more ships, sign and launch more roaming agreements and streamline production and marketing. This means that Seanet in 2010 will further strengthen its market position.

Stockholm Corporate Finance AB is acting as financial advisor to Seanet in connection with the rights issue.

For further information:
Håkan Jansson, Chairman Seanet, mobile 0708-24 20 21
Klas Lundgren, CEO Seanet, mobile 0735-34 60 78

Also www.seanet.se

Seanet Maritime Communications AB (publ.), listed on First North, has been selected to supply GSM-services to a merchant vessel. The ship is operated by a leading ship-owner within oil and gas offshore industry in Southeast Asia and is currently operating a merchant fleet of more than 50 vessels.

 

Seanet has received its first order within the merchant sector. The agreement includes a trial period on the first vessel and an intention for an expanded collaboration as soon as the first vessel is installed and the communication system is running.

 

The offshore operator with more than 50 vessels and additionally 50 vessels planned for the next years is focused on supply and construction to the offshore industry. The GSM-service will offer the crew on board to communicate via their ordinary GSM phones. The crew will be able to utilize the prepaid card from Seanet and Globe Telecom, called Sea2shore. With these prepaid cards Seafarers onboard the vessel will be able to call and send text messages to more attractive tariffs than with their existing mobile subscriptions.

- This is our first agreement within the merchant sector. There is very large number of vessels within this sector that has a great need for improved communication services onboard. Our ambition is to become one of the major suppliers within this segment, says Klas Lundgren, CEO of Seanet.
  
Seanet installs and operates mobile telephony and broadband on board ferry, cruise and merchant ships. C-Cell is Seanet´s ship-customized, small-scale GSM environment for passenger ships that enables passengers to use their standard mobile phones on board. M-Cell is Seanet’s solution for merchant vessels. C-Spot is Seanet’s Wi-Fi service, giving passengers Internet cafés and wireless access for laptops with access to the internet on board, via satellite.

 

Seanet has today 40 agreements on communication solutions for vessels and 22 operational.

 

For further information:
Klas Lundgren, Managing Director, Seanet, tel. mobile. +46 735 346078

Also www.seanet.se

Seanet is a global telecom operator at sea. Seanet installs and operates mobile and broadband services on board on ferries, cruise ships and merchant vessels. Seanet Maritime Communications AB (publ) is listed on First North, which is an alternative market operated by NASDAQ OMX. Companies whose shares are traded on First North are not obliged to follow the same rules as listed companies, but a less comprehensive set of rules adapted to the predominantly small companies and growth companies. The company's Certified Adviser and liquidity provider is Mangold Fondkommision AB.

For the first time in the Seanet history, July has given a positive financial result. The positive development during July is related to increased number of vessels, extended marketing activities onboard and the new system platform from Ericsson.

 

”Seanet’s market position has developed positively during the past months. More than 15 new signed contracts with ship-owners in combination with new launched roaming agreements and the newly implemented Ericsson system platform, forms the foundation for Seanet becoming one of the four most important suppliers of mobile services at Sea. Seanet is now one of the fastest growing Maritime Operator. We are looking forward to August as this is normally our best month of the year.” says Klas Lundgren, President at Seanet.  .

 

At present Seanet has delivered its service towards the cruise and ferry market, but from now we will intensify our efforts towards the merchant market. The new service platform from Ericsson and the strategic cooperation with Globe Telecom is the foundation for Seanet to intensify our work towards the cruise, ferry and merchant market. “We see great potential in the merchant market. This will give us a more balanced cash-flow during all months of the year. Today less than 1 % of the market has invested in Mobile service at sea and this gives us great possibilities” says Seanet President Klas Lundgren.

 

Ericsson was supposed to deliver the system platform by April 2009. The plan was to migrate to the Ericsson system during April and after that continue to migrate vessels from our older system towards Ericsson. This migration took longer than expected and was not finalized until late June. The last component from Ericsson was delivered at June 18th.

 

Seanet has in total 39 ship contracts. Due to the delay caused by Ericsson,  Seanet has only implemented 22 vessels. The income from these ships is continually increasing and by July Seanet shows first month of positive result.

 

 

 

Seanet Maritime Communications AB (public), listed on First North, recently partnered with Globe Telecom Inc. to jointly supply maritime prepaid communication services allowing crew and passengers to call and text their loved ones while on board shipping vessels.

 

Seanet, with its proven expertise in maritime GSM solutions teams up with Globe, one of the Philippines’ leading telecommunications company to jointly provide on vessel service for seafarers and cruise passengers. The new service will offer simple and affordable ways of communicating via call or SMS while on board merchant ships, ferries, cruise ships, super yachts and off shore platforms with Seanet technology.

 

According to Seanet Chief Executive Officer Klas Lundgren, the partnership opens many opportunities for Seanet. “First we are able to capitalize on prepaid solutions to  crew and passengers on existing C-cell installations. For the traveller and C-Cell Crew segment, we are offering a GSM solution that will make usage possible for those whose home operator does not provide maritime roaming, and give an option to those whose home operator charge maritime roaming a significant premium.”

 

“This also gives us a chance to penetrate into the merchant segment. There are over 150,000 merchant ships worldwide, each with a crew of 15-20, spending most of the time on the high seas. Crew welfare is hence commonly seen as a key concern, and a service that provides a cost-efficient mean to communicate is a significant contribution to crew welfare. Personal communication using a personal device, rather than a shared phone on the bridge has significant integrity advantages,” Lundgren said.

 

“The cruise and ferry market is highly competitive, but Seanet has managed to get its own market share by offering an easy-to-use and affordable on-sea communication service to potential users who are currently using service that has no roaming or has excessive roaming rates. We do also see business opportunity and growth potential in the merchant market on a long term basis, hence, this is the natural next step,” Lundgren added.

 

According to Lundgren, Globe complements Seanet with its existing retail infrastructure including prepaid billing, top-up mechanisms, SIM cards, customer care, existing relation with the Philippine market and web of resellers targeting Filipinos abroad via automatic loading or AMAX.

 

“For Globe, the partnership is also beneficial as it opens the opportunity for us to serve the maritime segment for the first time. The Filipino community abroad is an important business area for us, and adding the maritime opportunity allows us to target a part of this segment we were previously not able to reach. We hence believe this opportunity will strengthen loyalty and reduce churn in this key segment, and also reach users of our service outside our normal scope,” says Globe President and Chief Executive Officer Ernest Cu.

 

About Globe Telecom:

Globe, a leading telecommunications services provider in the Philippines caters to more than 25.7 million mobile subscribers through its mobile, fixed line and broadband services. Globe’s strategic shareholders are Ayala Corporation and Singapore Telecom who are acknowledged as industry leaders in the Southeast Asian region. Globe creates and delivers products and services that are relevant to its customers and are easy to understand and use. Globe’s mission is to transform and enrich lives through communications that will help bring them closer to their aspirations and what matters most to them. As a pioneer, Globe continues to be a part of the revolution that’s connecting millions of people in the Philippines and around the world. Beyond technology, Globe’s business is truly shaped by the bonds that tie Filipinos together.

 

For more information please visit www.globe.com.ph