AsiaSat suffers fall in revenues
March 21, 2014
By Chris Forrester
AsiaSat’s financials, released in Hong Kong March 20th, showed zero growth compared to 2012 when an exceptional payment of HK$ 311 million was stripped out from last year’s numbers.
Revenues from satellite transponder capacity sales fell back 4 per cent in what was a challenging year. Notably, revenues suffered because of the renewal of contracts with “an anchor customer at a lower rate and increased competition in the market.”
“Nevertheless,” said the company, “we made several significant new customer acquisitions during the year and positioned ourselves for growth with the planned launch of AsiaSat 6 and AsiaSat 8 to provide new C and Ku-band capacity in the second half of 2014. These new satellites, along with our renowned service quality, will enable us to broaden our customer base and open up new markets in the years to come.”
“Turnover from continuing operations for 2013 was HK$1,499 million (2012: HK$1,780 million), representing a decrease of 16 per cent from the previous year. The decline was primarily due to the previous year’s one-off revenue of HK$311 million resulting from the enactment of the Finance Act in India in May 2012, and a lower transponder lease rate for an anchor customer that became effective in 2013 which was partially offset by the short-term revenue generated from the leasing of AsiaSat 7. The turnover achieved was relatively flat when compared with the previous year if one-off revenue items are excluded,” said the company.
“The preliminary design phase for AsiaSat 9 started in January 2014 and, when launched in 2017, will replace AsiaSat 4. AsiaSat 9 will introduce new services and coverage to the region and will enhance our position in the marketplace.”
“Despite the weak economic situation that is affecting some of our customers, we believe there continue to be growth opportunities in South Asia, Southeast Asia and the Middle East. One of our strongest competitive advantages is AsiaSat’s reputation amongst broadcasters for quality and service. Potential customers see that AsiaSat carries globally-recognised brands in the broadcast and media sector, and this “neighbourhood” effect influences their decision to choose AsiaSat to deliver their services.”