03:10 PM - Aug 22, 2014
SpeedCast casting communications net over Asia
22 Aug 2014 - SpeedCast International Limited (ASX:SDA) CEO Pierre-Jean Beylier outlines the satellite network service provider’s strategy following its ASX debut.

Transcription of Finance News Network Interview with SpeedCast International Limited (ASX:SDA) CEO, Pierre-Jean Beylier
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from SpeedCast International Limited (ASX:SDA) is its CEO, Pierre-Jean (“PJ”) Beylier. PJ, congratulations on having just listed on the Australian Securities Exchange.
Pierre-Jean Beylier: Thank you very much, thank you for having me.
Lelde Smits: SpeedCast is a satellite network service provider. What services exactly does the Company provide and how do you generate money?
Pierre-Jean Beylier: We are providing turnkey managed satellite services to our customers, which are large enterprises and governments in over 60 countries around the world. We are supporting mission critical communications and applications for these customers, wherever they operate.
We’re a service business, which means that the vast majority of our revenues come from recurring service revenues. In addition to that, we’ve got revenues related to installation and maintenance of those networks.
Lelde Smits: Your initial public offering was aiming to raise $150 million. How much did you raise and where do you plan to put the funds?
Pierre-Jean Beylier: So we raised where we were aiming at $150 million. A bit over $50 million is used to repay some of our debts and the rest of the proceeds are going to shareholders. So we have a number of shareholders selling down some of their stakes in the Company.
Lelde Smits: Where is SpeedCast based and why did you choose to list on the Australian Securities Exchange?
Pierre-Jean Beylier: We started the Company almost 15 years ago in Hong Kong and we are still headquartered in Hong Kong today. This is where I am based, but we chose to list on the Australian Stock Exchange for a number of reasons. First of all, over 50 per cent of our revenues are generated in the Australian Pacific region. We also believe that our story is a good story for investors on the ASX to understand. And that this Exchange is the right size for a company like ours, for the flow that we’re aiming at.
Lelde Smits: How is your business different to other satellite network service providers?
Pierre-Jean Beylier: First of all we’ve got a very strong leadership position in Asia Pacific, so our infrastructure in this region, our support capabilities, our engineers on the ground are second to none. We’ve got a very strong position in this market.
We’re also a major player globally in the maritime sector, where we have built a global brand name and we have also built a reputation for the quality of our support. And I think SpeedCast is known for its very strong focus on customer satisfaction. This is something that we are very committed to in the whole organisation, from the top to the bottom and I think that’s very much at the heart of our success.
Lelde Smits: What areas of growth have you identified for the business?
Pierre-Jean Beylier: The Company has experienced strong growth in the past few years and we expect that to continue in the future, with a few drivers. Definitely the growth of data connectivity requirement is something that is driving the growth of our business, across all the industries and the customers that we are serving. And in particular, I would emphasise the maritime industry, where the adoption of broadband satellite systems is accelerating. The natural resources vertical with strong oil and gas activities, and the telecom sector where GSM networks are expanding into rural parts of emerging markets in Asia.
Lelde Smits: Finally PJ, for the shareholders who may have just come on board. What milestones are you looking forward to and what’s your timeline to achieving them?
Pierre-Jean Beylier: The Company has a strong track record of growth and it’s very much our intention to continue sustaining double-digit organic growth, on a yearly basis. And we have made five acquisitions over the past two years; we are combining organic growth with a market consolidation strategy. We are in an industry that is very fragmented and we’ll be looking for opportunities to continue consolidating the market.
Lelde Smits: PJ, thank you for introducing SpeedCast and congratulations again on having just listed on the Australian Securities Exchange.
Pierre-Jean Beylier: Thanks a lot for having me here today.