Avanti loss widens on costs related to new satellites

(Reuters) - Satellite operator Avanti Communications Group Plc (AVN.L) posted a much wider full-year loss on higher costs after it decided to manage three satellite projects instead of one in the period.

Avanti, whose results for the year include the first revenue from its superfast broadband satellite HYLAS 1, said it started the early-stage work for the construction of its third satellite in the series, while the second one, HYLAS 2, was on track for launch in the first half of 2012.

"Our pipeline of new business gives us confidence in our ability to meet expectations," Chairman John Brackenbury said in a statement on Monday.

The company also said it completed a launch insurance policy for HYLAS 2 with a sum insured of $328 million (211 million pounds).

July-June pretax loss widened to 12.7 million pounds ($19.8 million) from 2 million pounds last year. Revenue fell 6 percent to 5.5 million pounds.

Avanti shares, which have lost 60 percent of their value since the start of 2011, closed at 268 pence on Friday on the London Stock Exchange, valuing the company at about 220 million pounds.

(Reporting by Tresa Sherin Morera in Bangalore; Editing by Don Sebastian)