[SatNews] Mr. Gregory M. Zeluck, the Chairman of AsiaSat, is reporting that “The first six months of 2015 were challenging for AsiaSat and the satellite sector as a whole.

"The Company does not expect significant positive change in the market environment in the second half.  Due to delays in licensing approvals, it is taking  longer than  expected  to  lease  out  the transponder  capacity  of AsiaSat  6  and  AsiaSat  8 while the depreciation of both satellites will commence in the second half of the year.  A modest percentage of the Company revenues are denominated in Renminbi (RMB).

"Should the recent volatility of the RMB continue,  such  will  have  a  negative  impact  on  the  second  half  performance. In  addition, the  added  interest  expenses  arising  from  the  AsiaSat  6  and  8  E -Im  loans  and  the  bank  loan raised for the special interim dividend payment will impinge on the earnings of the Company in the second half of the year.

“Despite these challenges, we are optimistic about our prospects for the future, as we operate in one of the world’s growth markets.  We remain vigilant in developing effective business strategies in a rapidly evolving market, where AsiaSat, with its new capacity on line continues to be  well-positioned to capture the region’s various growth opportunities.  Our reputation as a trusted  provider  of  premium  satellite  services  is  firmly  established  in  the  region.

"With  the support  of  a  new  major  shareholder (The Carlyle Group, replacing General Electric Company),  the  Company  continues  to  focus  on  incorporating  new technologies  and  applications  while  offering  comprehensive  solutions  to  our  valued  clients. Operating under a vibrant new brand that is more attuned to developing trends, the Company is committed to maintaining and growing AsiaSat’s strong position in the region while delivering improved returns to our shareholders ,” Mr. Zeluck concluded.

Some operational highlights include:

• A strategic restructure of the sales and marketing teams to refocus the company’s efforts on key Asian and global markets
• The rebranding exercise announced in March 2015 continuing with the momentum for change to improve services to clients
• Construction of AsiaSat 9, AsiaSat 4’s replacement, remains on track for completion in Q4 2016. This new satellite will add additional capacity at 122 degrees East
• Overall utilization rate of AsiaSat 4, AsiaSat 5 and AsiaSat 7 stood at 72 percent

Financially speaking...

• 1H turnover of HK$641 million, down 8 percent when compared to same period last year, primarily due
• to lower short term revenue generated in the current period
• Contracts on hand as at 30 June 2015 valued at HK$3,645 million
• 1H profit attributable to equity holders of HK$250 million, compared to HK$283 million in the same period last year. The decline was mainly the result of lower revenue, partially mitigated by the lower depreciation charge
• Interim dividend of HK$0.18 per share, the same as last year. A special dividend of HK$11.89 per share was paid on July 30, 2015, to registered shareholders