{"id":80388,"date":"2013-08-13T22:49:46","date_gmt":"2013-08-13T14:49:46","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/rrsat-sees-record-satellite-revenue-increase\/"},"modified":"2013-08-13T22:49:46","modified_gmt":"2013-08-13T14:49:46","slug":"rrsat-sees-record-satellite-revenue-increase","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/rrsat-sees-record-satellite-revenue-increase\/","title":{"rendered":"RRsat Sees Record Satellite Revenue Increase"},"content":{"rendered":"\n\n\n\n
\"\"<\/td>\n<\/tr>\n
Israel based RRsat delivered record revenue results in the second quarter of 2013.<\/i>
\nImage credit: RRsat\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[Satellite TODAY 08-13-13] Israel-based RRsat Global Communications Network<\/b>, reported a record quarterly revenue increase during the second quarter of 2013, which ended on June 30. The company, a provider of digital content management and global distribution services to the television and radio broadcasting industries, reached $29.5 million in revenues.<\/p>\n

      \u201cOur continued robust performance allowed us to deliver excellent free cash flow and preserved a strong balance sheet. We are proud of our results and are very optimistic regarding our future,\u201d said Avi Cohen, CEO of RRsat during a conference call with investors Aug. 8.<\/p>\n

       Industry analysts agreed noting that \u201cRRSat had a strong quarter, which points to solid fundamentals as the company pursues its corporate strategy,\u201d said David Vaccaro program manager with Futron Corporation<\/b>, a space consulting firm based in Washington, D.C. \u201cThe company\u2019s glocalization business model, which merges worldwide distribution scope with locally-relevant content, seems to be working for RRsat.\u201d<\/p>\n\n\n\n
By the Numbers<\/b>The close of the financial quarter marks yet another period of strong growth for RRsat. In addition to increased revenues, gross profit was reported at $7.4 million, an increase of 10.2 percent over the same quarter in 2012. Gross margin was reported at 24.9 percent, as compared to 23.8 percent in the second quarter of 2012. The individual numbers for both categories at the end of the second quarter of 2013 also showed demonstrated gains from the first quarter of this year, which showed gross profits of $7.1 million with a gross margin of 24.1 percent.<\/p>\n

Within the company\u2019s year-to-date financial results, revenues for the six months ending on June 30 increased 5.8 percent to $58.7 million, compared to $55.5 million in 2012. Gross profit for the time frame was $14.4 million, representing an increase of 12.6 percent as compared to $12.8 million from the previous year, and RRsat\u2019s gross margin was reported at 24.5 percent, compared to 23.1 percent in 2012.<\/p>\n

RRsat expects 2013 full-year revenues in the range of $120 to $125 million, representing a 6 to 10 percent year-over-year growth. It is further expected that the company\u2019s gross margin for 2013 will improve over 2012. For the third quarter of 2013, the company anticipates revenues in the range of $29.2 to $30.5 million, representing a 2.5 percent to 7 percent year-over-year growth.<\/p>\n

\u201cWe continue to deliver strong profitability as net income improved by 52 percent over the year-ago period and up 10 percent sequentially from the first quarter of 2013 even while investing an expansion in key geographic regions demonstrating the power of our business model,\u201d said Avi Cohen, CEO of RRsat.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      The record revenues of $29.5 million reflect an increase of 5.1 percent compared to the $28.1 million earned during the same quarter in 2012.\n<\/p>\n

      \u201cWe delivered record quarterly revenue while increasing our backlog to $205 million as of June 30, 2013, demonstrating strong demand [for] our services,\u201d Cohen said. The backlog is significant, he said, noting that \u201cbacklog is the leading indicator for our contracted, long-term recurring business which is a strong indication for the remainder of 2013 and beyond.\u201d<\/p>\n

       Moving forward, RRsat is looking to expand its presence in Europe and has already opened an office in Moscow. RRsat\u2019s Moscow office is a step toward establishing a presence in Russia and the Commonwealth of Independent States (CIS), a market of tens of millions of households, company officials previously told Via Satellite<\/i>.<\/p>\n

      This step has been preceded by efforts to assemble the required infrastructure, including local premium platforms, strategic partnerships and alliances, and the recruitment of a local team to provide tailored solutions for broadcasting in and out of this region.<\/p>\n

       \u201cThe company\u2019s recent opening of a Moscow office represents new penetration into a key market: the Russian market is increasingly important, in terms of content demand, as a destination for European and American media and entertainment offerings,\u201d Vaccaro said. \u201cBy some metrics, it is the third or fourth largest media market in the world.\u201d<\/p>\n

Vaccaro also interprets RRsat\u2019s positive results as a good sign for the industry. He said the results could indicate a \u201clarger movement in the content distribution and satellite industries toward restored health. As world markets have stabilized and the recession\u2019s worst effects have begun to recede, consumer confidence is rising. Commensurately, industry contracts, terms, and timeframes, are becoming somewhat more normalized after a period of constraint,\u201d he said.<\/p>\n

 
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Israel based RRsat delivered record revenue results in the second quarter of 2013. Image credit: RRsat [Satellite TODAY 08-13-13] Israel-based RRsat Global Communications Network, reported a record quarterly revenue increase during the second quarter of 2013, which ended on June 30. The company, a provider of digital content management and global distribution services to the […]<\/p>\n","protected":false},"author":1,"featured_media":80033,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-80388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/80388"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=80388"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/80388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/80033"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=80388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=80388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=80388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}