NSR’s second installment of the Satellite Operator Financial Analysis study finds that the FSS sector remains robust in financial terms, with continued revenue growth in the outlook, while imminent IPOs and further industry consolidation (GE Satellite, KT Satellite) continue to shape the industry. In addition, the relatively recent and widespread trend of increased cost control is expected to improve margins further.
NSR assessed the operational position and individual strategies of the satellite operator community, finding that although growth slowed in 2011 compared to previous years, satellite operators are gearing up to enter a new phase of growth and face up to increased competition.
“Currently all operators are investing strongly in expanding their fleets to spur future growth,” notes Senior NSR Analyst and report author Regina Riegerbauer. “CAPEX spending has increased 17 per cent on average for the last five years and is currently seeing record high levels. So far, this investment cycle has resulted in further improved backlogs, which demonstrate guaranteed cash flows going forward and confirm the satellite sector’s potential for those seeking solid long-term investments.”