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AsiaSat Net Income Declines 27% in First Half |
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HONG KONG, Aug. 25, 2005/Satnews Daily/ — Asia Satellite Telecommunications said on Wednesday its first-half net income dropped 27 percent and fell to $23.8 million (HK$185) as satellite transponder capacity prices fell even as it sold 14 percent more satellite capacity than in the year-earlier period.
AsiaSat said turnover declined 19 percent to $57.3 million (HK$445 million). But discounting a one-off item, sales would have shown no change on the year-earlier period. Revenue last year included a $13.76 million (HK$107 million) one-off gain from the early termination of a contract with CETV, a mainland TV station owned by Tom Group.
AsiaSat chairman Romain Bausch said the outlook for the rest of 2005 remains unpromising and it will be difficult to maintain the results for the full year at the level achieved in 2004. Nevertheless, he said he remains optimistic that there is a bright future for the satellite industry in Asia. AsiaSat cited the award of the license for 8 additional BSS transponders to provide capacity for future growth of DTH.
Operating expenses in the first half of 2005 amounted to $13.12 million (HK$102 million), a decrease of $1.28 million (HK$10 million), of which $1.02 million (HK$8 million) was due to the provision for impairment of trade receivables made in the prior year. The Group’s EBITDA (earnings before interest, tax, depreciation and amortization) margin declined to 77% (2004: 80%) as a result of the decrease in turnover.
During the period, the AsiaSat said it generated a net cash flow of $12.35 million (HK$96 million) after three paying capital expenditure of $2.7 million (HK$21 million) and dividend of $13.5 million (HK$105 million).
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