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[Satellite News 11-09-09] The global economic recession seemed to have little effect on major satellite companies in the third quarter of 2009, as the industry reported especially strong growth across a variety of sectors.
    Eutelsat Communications saw an increase in revenues at 253 million euros ($373.67 million), up from 226.7 million euros ($334.82 million) compared to the same period last year in its 2009 third quarter. The operator saw revenue growth across all segments. The operator generated 180.8 million euros ($267.03 million) in the quarter from video applications, up nearly 9 percent compared to the same stage last year. In its data and value added services, revenues reached 47.7 million euros ($70.45 million) in the quarter, an increase of over 16 percent compared to last year. Multi-usage services posted a 46 percent gain over 2008 at 22.9 million euros ($33.82 million).
     Inmarsat achieved growth in all of its mobile satellite services markets in the 2009 third quarter, which generated an 8.7 percent revenue increase over 2008 at $176.7 million. The company’s EBITDA grew 18.4 percent to $133 million and profits after tax improved 33.5 percent to $50.2 million. Inmarsat Holdings reported net borrowings of $879.9 million, which excludes net borrowings of Inmarsat and Stratos Global Corp. and its subsidiaries. Inmarsat Holding’s ratio of net borrowings to its last twelve-month EBITDA was 1.8 to 1.0.
     Inmarsat CEO Andrew Sukawaty was pleased with the results and announced he will extend his CEO term by two years. “Our cost control and reduced capital expenditure needs are contributing respectively to strong EBITDA growth, up 18.4 percent, and a substantial increase in free cash flow, up over 90 percent year-over-year. … We are well positioned to deliver on our targets for the full year,” Sukawaty said in a statement.
    For subscriber growth, Hughes Communications came up with 17,000 subscriber net adds in its 2009 third quarter results, a 49 percent increase over the previous year and a record for the company.
    Subscriber growth was complemented by a 19 percent increase in services revenues over 2008 and total revenues up 12 percent at $251 million, with broadband revenues up 16 percent in the quarter.
    Hughes’ broadband revenues increased 14 percent in North America and  22 percent internationally. The only drop the company reported was its Telecom Systems revenues, down 32 percent at $29 million due to MobileSat development contracts reaching completion and the winding down of its contract with Telematics.
    The company boasts an $822 million backlog with new orders totaling $208 million. Hughes’ positive cash from operations stands at $74 million compared to $26 million in the third quarter of 2008.
    Telesat’s launch of service on the Nimiq 4 and Telstar 11N satellites and the stronger standing of the U.S. dollar produced revenues of $187 million in the 2009 third quarter, an increase of about 9 percent from the same period in 2008.
     Telesat’s net income stands at $203 million, which includes a  $35 million gain due to the sale of Telesat’s interest in Telstar 10. Adjusted EBITDA for the third quarter was $129 million, an 18 percent year-over-year increase.
     Telesat President and CEO Dan Goldberg projected a positive year-end report for his company. “With the recent entry into service of Nimiq 5, Telstar 14R under construction and a recently announced new satellite, Nimiq 6, planned for Bell TV, Telesat remains well positioned for the balance of this year and beyond,” Goldberg said in a statement. 
In its 2009 nine-month financial results, Telesat’s consolidated revenues are up $88 million to $592 million, with adjusted EBITDA up $103 million at $416 million and net income up $502 million at $351 million.
     Intelsat saw its 2009 third quarter revenues increase $19.4 million to $617.9 million, up from $598.5 million in 2008. The "big four" FSS operator’s transponder service revenues increased $25.7 million, due primarily to a $19.4 million increase in revenue from network services customers and renewals in the Latin American, Caribbean, European, African and Middle East regions. The company’s managed services business increased its revenues $3.9 million due to business and service expansion in trunking, private line and GXS broadband solutions in Africa and the Middle East.
     “Our third quarter financial performance reflects continuing solid demand for services across our global satellite fleet and ground network as well as the success of our capacity management program. By executing on this strategic objective, we have boosted our capacity utilization to 85 percent and improved our returns on our network investments.  We will opportunistically supplement our capacity with modest investments in order to support customer growth and to increase the resilience of our fleet,” Intelsat CEO Dave McGlade said in a statement.  
    Smaller companies and manufacturers also enjoyed a third-quarter boost. Norsat revenues increased for the fifth consecutive financial period, reporting revenues of $5.1 million in the quarter. Revenues in the 2008 third quarter were $4.9 million.
    Company revenues for the first nine months of 2009 increased to $15 million, compared to $11.8 million during the same period last year, with cash on hand at $7.2 million at the end of September, up from $5 million at the end of June. Norsat also doubled its operating credit line during the quarter from $400,000 to $800,000.
    While its microwave and satellite business units were the company’s strongest performers, the company said it now will focus on building its new maritime, wireless network and Norsat Capital businesses. 
    “We made several inroads for our products with other non-U.S. military [customers] as well as with orders from customers in India and China for broadcasting purposes and Italy for maritime communications. This type of product and geographic diversification will continue to be one of our key ingredients to maintaining our organic growth. At this time, we anticipate finishing the year at the lower end of our year-on-year revenue growth expectations of 15 percent to 20 percent.” Norsat President and CEO Amiee Chan said in a statement.

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