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