UAE-based MSS operator Thuraya is talking to potential partners about providing coverage in the US as it seeks to become a “truly global” player. CEO Samer Halawi said its rapidly growing maritime and aeronautical platforms require more coverage…
UAE-based MSS operator Thuraya is talking to potential partners about providing coverage in the US as it seeks to become a “truly global” player.
CEO Samer Halawi said its rapidly growing maritime and aeronautical platforms require more coverage than it is able offer, and he would not rule out buying or leasing capacity to expand before procuring a next generation constellation.
Thuraya covers two-thirds of the world with its two satellites at 44E and 98.5E, and it serves the rest through roaming agreements.
“We have been open to working with other companies and we continue looking for that because there are synergies to be made in the satellite world,” Halawi told SatelliteFinance.
“In the past operators have chosen to do everything on their own, but I think people are becoming a lot more aware now of the synergies that are available.”
He said collaboration is becoming increasingly popular in the FSS market and, although MSS operators are comparatively “very independent”, he pointed to Inmarsat’s recent M2M alliance with Orbcomm as a sign that attitudes are changing.
“We’re looking for partnerships that make sense for us, and if we can expand our scope or our geographical presence through those then we will pursue that,” he said.
Thuraya’s expansion ambitions come as it reveals revenues soared 15% over 2012 to US$122m, compared with a 4% rise the year before.
EBITDA increased 29% over 2012 to US$36m and Halawi said the operator is on track to becoming profitable in two years, while achieving US$200m in sales by 2018.
In contrast to other MSS players, he also pointed to a 14% increase in voice revenues over 2012, resulting from an expansion into Asia and a recent strategic deal with Softbank, the Japanese mobile operator. The company posted US$90m in total service revenues for the period, representing about 73% of its sales.
Although Halawi described Thuraya’s expansion approach as pragmatic, he played down prospects for large scale M&A as a result of this strong organic growth.
“We don’t have a burning need to grow inorganically through acquisitions like maybe some of the FSS players have been faced with, but we’re looking to expand,” he said.
He added: “Just because we’re growing double digits it doesn’t mean we’re satisfied. We’re looking to maximise this growth, and we’re looking to improve on our margins as well.”
Halawi also said he is in no rush to decide on what its next generation satellites will look like. Its oldest bird is not due to expire for at least six years, giving Thuraya a lot of room before it needs to start the typical three-year procurement cycle.
