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- Beam Communications (BCC) has reported a 43 per cent increase in its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the 2020 financial year to $3,009,000
- Underlying net profit after tax (NPAT) was steady with a minimal increase from $339,000 in FY19 to $341,419 in FY20
- The telecommunications company largely attributes the earnings to a strong demand for its ZOLEO global messaging device and its Iridium network
- Despite positive results, Beam also reported a statutory net loss of $1.62 million and an operating loss of $1.51 million compared to the $722,000 in FY19
- Company shares are trading 6.12 per cent lower for 23 cents
Beam Communications (BCC) has provided its full-year results for the 2020 financial year.
Pleasingly, Beam’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 43 per cent over the previous financial year to $3,009,000.
Underlying net profit after tax (NPAT) was steady with a minimal increase from $339,000 in FY19 to $341,419 in FY20.
The telecommunications company attributes the earnings to a strong demand for its ZOLEO global messaging device and its Iridium network. Other factors include an increase in high-margin airtime revenue, a favourable exchange rate, research and development tax refund and cost-saving initiatives.
Despite the COVID-19 crisis, Beam performed better than it expected.
Notably, full-year total revenue actually declined by 16.1 per cent to $14.92 million from FY19’s $17.77 million. However last financial year’s result was elevated by a $3.85 million Thuraya WE order.
Revenue from its online SatPhone Shop business grew 16 per cent. SatPhone Shop was established by Beam in 2012. It offers a range of mobile satellite products and services including handsets, accessories, SIM cards, and payment options on hardware.
Today, the subsidiary has become Telstra’s largest mobile satellite dealer, offering a full suite of mobile satellite solutions on the Iridium satellite network.
Due to the unpredictable COVID-19 caused, the company chose to write down $1.97 million in capitalised development expenses — mainly for the Thuraya WE network device. This one-off item led to a statutory net loss of $1.62 million for FY20.
Additionally, the company reported an operating loss of $1.51 million compared to the $722,000 reported in FY19.
However, Beam claims it is well-funded, with $4.2 million in cash and available debt facilities.
Company shares are trading 6.12 per cent lower for 23 cents at 3:12 pm AEST.
