This is a sharp jump in this profit, since in the first 9 months of 2004 the company recorded a pre-tax profit of approximately 9.5 million dollars
Avi Blizovsky
Ahead of the first public offering of shares in the communication space, the company reveals the revenue forecast. According to the company's estimation, its revenues from the operation of the "Amos 2" satellite will reach the level of 2005 million dollars in 35, and will gradually rise to 42 million dollars in 2009.
The operating profit before depreciation and financing (EBITDA) will amount to 2005 million dollars in 33, and will gradually increase until it stabilizes at 35 million dollars from 2008 until the expected decommissioning of the satellite in 2016. This is a sharp jump in this profit, since in the first 9 months of 2004 the company recorded an EBITDA of only about 9.5 million dollars. Itzik Shniberg, CFO of Space Communications, points out that until the expected departure of Amos 2 from service, the satellite is expected to generate revenues of $470 million.
Schniberg points out that of these revenues, about 370 million dollars are at a relatively high security level, since they are anchored in long-term contracts. According to the company's forecast, the cash flow generated by Amos 2 will amount to only 5 million dollars in 2005, but is expected to grow to 15 million dollars in 2008.
In the years 2009 to 2011, the company is expected to repay its debt to the existing bondholders, and therefore the cash flow is expected to decrease substantially. Starting in 2012, the cash flow is expected to increase to 35 million dollars, the same level as EBITDA. Today is expected the institutional tender of the offering, in the framework of which the company hopes to raise 170 million shekels, before the raising through the options. As part of the current capital raising, the company is expected to issue shares to the public for the first time.
Chalal will sell a package that includes bond shares and options, and the auction will be conducted on the rate of interest inherent in the bonds. The share price will be fixed and will be NIS 35. In this way, Halal hopes to raise NIS 110 million through the bonds and an additional NIS 60 million through shares. The exercise of the options will yield the company an additional NIS 50 million. The purpose of the fundraising is to finance the construction and delivery of the next satellite, "Amos 3", which is expected to enter into operation in 2008.
Yedan Amos 2
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