Hong Kong-based AsiaSat teased an extra 1.4 per cent profit margin for its H1 results, to HK$401 million (from HK$395m this time last year) in trading to June 30th. But the satellite operator reported a dramatic fall in overall revenues, down 25 per cent although due to exceptional circumstances.
AsiaSat reminded the market that last year it posted a one-off revenue contribution of HK$296 million. This half-year saw revenues of HK$767 million, down 25 per cent on last year’s numbers. However, stripping out last year’s exceptional item and the overall revenue was slightly up.
AsiaSat’s Chairman, Ju Wei Min, said, “For the second half of 2013, we do not expect to see any major new business developments as we await the launch of AsiaSat 6 and AsiaSat 8 in the first half of 2014. These new satellites will provide an opportunity to grow our business in years to come.”
“We foresee that new business will remain highly competitive during the second half. We can also expect a reduction in turnover and profit as we will feel the full effect of the renegotiated contracts with one of our longest-standing customers at terms lower than the previous contracts in the second half.”