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Satmex 8 at SSL facilities prior to shipping to launch base.
Image credit: SSL
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[Satellite TODAY 06-11-13] Satmex has seen increased revenue and successfully grew its backlog during the first quarter of 2013. These were among the highlights of results released for this period on June 11.
“We have a significant growth in our backlog; this is due to one large pre-sale of Satmex 7 and two major video customers signing long term renewals,” Satmex’s CEO, Patricio Northland said during a conference call.
According to Northland, Satmex’s core fixed satellite services (FSS) business produced an adjusted revenue of $28.1 million during this year’s first quarter, an increase of $1 million compared to the same time frame last year. “This continues to show a very high profitability in the FSS business with an adjusted margin of over 79 percent,” he said.
Northland also said he was pleased to report that three satellites are currently in operation. “Satmex 6 and Satmex 8 have full capabilities … We decided to move Satmex 5 to 114.9 degrees west which will give us another eight years of operation,” he said noting that the move will provide additional revenues and services for customers that were not previously expected.
“The two [Satmex 6 and 8] satellites are some of the most powerful satellites in the Latin American region and very much welcomed by our customers,” he added.
Northland said 2013’s first quarter had two important milestones: successfully launching its Satmex 8 satellite and transferring all customers from Satmex 5. For Satmex, the launch of Satmex 8 was a vital part of its business strategy, as the company looks to overcome a troubled past, which included entering Chapter 11 bankruptcy protection in 2011. The operator is now on an upward curve, and the launch of this satellite is the latest step on its growth plan.
While Satmex derives around 30 percent of its revenues from Mexico, it is looking to explore more opportunities internationally.
“There are some new DTH platforms emerging, but growth is also strong from existing platforms. We are also beginning to see potential growth opportunities on our cable neighborhood capacity. DTH and cable operators want to move into HD programming, which requires additional capacity. I would say that all of the existing video networks will require significant amounts of additional capacity. Satmex is well positioned to provide capacity to those video networks looking to grow. We can reach all of the Spanish speaking countries in South America, such as Chile, Peru, Colombia, Ecuador and Venezuela. That is one very specific growth opportunity for us. The second area of growth for us is cellular backhaul. We continue to see a tremendous amount of growth on cellular telephony networks,” Northland said in an interview with Via Satellite last year.
In May of this year, SSL-built Satmex 8 and successfully performed a post-launch maneuver deploying Satmex 8’s solar arrays on schedule following its March launch aboard International Launch Services’ (ILS) Proton Breeze M launch vehicle. The satellite will provide video content and distribution, broadband services, and cellular backhaul in North, South and Central America. When in-orbit testing is completed, it will be placed at the 116.8 degrees west orbital location. Satmex 8 has 24 C- and 40 Ku-band transponders, and will improve the current continental and regional services for broadband, video contribution and distribution, cellular backhaul, and distance learning.
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