Asiasat Revenue Rises Despite Tough Times

Hong Kong, August 20/Satnews Daily/ — Asia Satellite Telecommunications Holdings Limited reported yesterday 21 percent increase in revenues to $70.65 million for the first six months of 2004, compared to $58.47 million during the same period last year. But a big portion in the rise in revenues was attributed to $15.77 million one-off lump sum receipt for early termination of a transponder utilization agreement, Asiasat said.

Acknowledging a tough year ahead, Asiasat said profit attributable to shareholders was $32.57 million compared to $30.77 million or an increase of only 6 percent. The smaller increase in profit, according to Asiasat, was due to the anticipated additional depreciation and in-orbit insurance on the new AsiaSat 4 satellite.

Excluding the lump sum receipt, turnover would have reached only as $57.44 million, a decrease of just under 2% below that of the same period in the prior year. Profit attributable to shareholders would have amounted to $20.77 million, a larger 32% decrease.

In a news release, Asiasat said the first six months of 2004 of the Asia Pacific satellite sector continued to be sluggish, with transponder demand lagging behind.

But Asiasat there are early signs of improvement in some regional financial, consumer and tourism markets. It cited signs of relaxation in China’s media regulations that will allow for more television channels. It said there is evidence of further progress in the establishment of direct-to-home systems for China and India, and the growth of High Definition Television in the United States and Europe. These developments, Asiasat said, will continue to promote an increase in television channels and a requirement for more bandwidth.

During the first six months of 2004, the Group's three in-orbit satellites, AsiaSat 2, AsiaSat 3S, and the new AsiaSat 4, continued to perform well with no interruptions or breaks in customer service. There was no permanent technical impact from the temporary attitude anomaly that affected AsiaSat 2 in late 2003, Asiasat said.

AsiaSat 4, launched in April 2003, is positioned at the 122oE slot, and carries 28 C-band and 20 Ku-band transponders, including four Hong Kong BSS (broadcast satellite service) transponders. Its overall utilization rate at June 30, 2004, was 18% compared to 10% at December 31, 2003.