GomSpace reports revenue growth but deeper losses in 2018
Nanosatellite provider GomSpace Group reported a 59% increase in 2018 revenue to SEK 153.4 million, but fourth-quarter results were impacted by payment delays, leading to a lower gross margin and increased operating loss.
Stockholm – GomSpace Group AB, a company specializing in nanosatellites, has released its financial results for the fourth quarter and full year 2018. The company reported consolidated net revenues of SEK 153.4 million for the full year, a 59% increase from SEK 96.4 million in 2017. Excluding intercompany eliminations, the growth rate was 63%.
However, the fourth quarter saw a significant decrease in profitability. While net revenues rose 36% year-on-year to SEK 40.2 million, the gross margin dropped sharply to 6% from 26% in the same period of 2017. The operating loss widened to SEK 44.5 million, compared to an operating loss of SEK 23.1 million in the prior year. Management attributed these reduced margins and profits primarily to a project slowdown with customer Sky and Space Global due to overdue payments, which also necessitated restructuring and staff reductions.
Despite these challenges, GomSpace maintained a substantial order book valued at SEK 715.4 million as of December 31, 2018. The company anticipates converting SEK 80-90 million of this backlog into revenue during 2019. In a significant development, GomSpace also signed a contract with the European Space Agency (ESA) to initiate work on the GOMX-5 satellite mission, aimed at exploring new nanosatellite capabilities for future constellations.
The company raised SEK 251 million before transaction costs through a rights issue during the period. CEO Niels Buus indicated that the overdue payment from Sky and Space Global was expected to be received shortly after the reporting date.