[08-30-11] The FSS satellite industry hit both positive and negative fiscal milestones at the 2011 halfway mark, which allowed analysts gain a better perspective on the sector\u2019s long-term outlook. These performances were especially significant as the FSS industry heads through a period of increases in new satellite orders and the launch of several next-generation broadband and broadcasting services and the rapidly emerging Ka-band market.
\n In part one of this two-part segment, Satellite News<\/i> breaks down the numbers from the FSS industry\u2019s \u201cbig four,\u201d and highlights key future trends that emerged from the sector\u2019s results.
\n
\nThe FSS sector\u2019s largest fleet operator, Intelsat<\/b>, reported a 1 percent increase in its overall 2011 second quarter revenues at $642.5 million, compared with 635.3 million reported in the same period last year. The company\u2019s net losses, however, widened to $214.48 million from 181.91 million in 2010 and included a $158 million non-recurring charge received for loss on early extinguishment of Intelsat\u2019s debt resulting from refinancing activity.
\n Intelsat\u2019s contracted services backlog was $9.8 billion at the end of the second quarter. \u201cBusiness activity is strong, driven by favorable demand trends for broadband infrastructure and media distribution for DTH and cable applications,\u201d said Intelsat CEO David McGlade. \u201cOverall growth was muted as a result of reduced mobile satellite services revenues in our government business and decreased network services revenues. Still, we experienced strong revenue growth of 9 percent in our government business and modest growth in our media business.\u201d
\n Europe-based international satellite operator Eutelsat<\/b> reported 2011 full-year results that saw the company generate 1.168 billion euros ($1.67 billion) in the 12 months to the end of June \u2014 an increase of more than 11 percent compared with the same stage last year. Net profits also showed a healthy 25 percent increase to 338.5 million euros ($485.15 million).
\n Jefferies International <\/b>Satellite Equity Analyst Nick Bell said the operator\u2019s projections for growth in 2012 remain too conservative for comfort. \u201cSales growth of 11.5 percent was slightly ahead of both our estimates at more than 11.3 percent and the consensus expectations of more than 11.4 percent. Management guidance for the full-year 2012, however, was conservative, with growth of 5.7 percent compared with our current forecast of 9.2 percent. We see the stock as being fully valued. The push back in revenue growth from full-year 2012 to full-year 2013\/2014, plus the conservative level of guidance compared with consensus, may disappoint the market.\u201d
\n Eutelsat\u2019s international satellite operator rival SES<\/b> produced 2011 first-half results that showed the operator generating revenues of 853.2 million euros ($1.22 billion) through June \u2014 an increase of 3 percent compared with the same stage last year. The operator also said that operating profits increased 4 percent to reach 402 million euros ($576.16 million) compared with the same stage last year. Analysts, however, said they would probably revise SES\u2019 rating slightly downward as estimates take the weaker U.S. dollar into account.
\n Bell said that SES\u2019 disappointing sales mix prevented its 73.3 percent EBITDA margin from meeting expectations of 74.9 percent estimate, but that its 83.3 percent infrastructure EBITDA margin represents a very strong performance. \u201c[SES\u2019] infrastructure EBITDA margin was above our expectations, which bodes well for the future as it is a fixed cost business and should therefore be sustainable. This performance could even be improved upon as the group is putting in place some cost-cutting and rationalization efforts, with 15 million euros ($21.5 million) in restructuring with a one-year payback.\u201d
\n Canadian FSS operator Telesat\u2019s<\/b> 2011 second quarter results showed minimal change from the company\u2019s performance in the same period last year. In its financial results for the three-month period ending June 30, Telesat reported a 2 percent decrease in consolidated revenues at $200 million, but revenues remained relatively unchanged compared with the same period in 2010 when adjusting for foreign exchange rate changes during the period. The operator\u2019s adjusted EBITDA fell 1 percent to $155 million, which Telesat also blamed on the strength of the Canadian dollar against the U.S. dollar. Telesat\u2019s second-quarter operating income increased 2 percent to $95.6 million.
\n Telesat CEO Dan Goldberg said Telesat is now preparing for the launch of its ViaSat-1 satellite in two months. Telesat purchased the Canadian coverage of the broadband satellite from Loral to provide rural broadband services to Barrett Xplore via the satellite\u2019s antenna.
\n \u201cWe successfully launched Telstar 14R in the quarter and, notwithstanding an anomaly in the deployment of one of its solar arrays, we currently expect the satellite will give us expansion capacity in the key Latin America and maritime markets to support our planned growth. At this time, we remained focused on the launch in a few months\u2019 time of the ViaSat-1 satellite, as Telesat owns the satellite\u2019s Canadian payload, and achieving our full-year financial and operational objectives,\u201d said Goldberg.<\/p>\n","protected":false},"excerpt":{"rendered":"
[08-30-11] The FSS satellite industry hit both positive and negative fiscal milestones at the 2011 halfway mark, which allowed analysts gain a better perspective on the sector\u2019s long-term outlook. These performances were especially significant as the FSS industry heads through a period of increases in new satellite orders and the launch of several next-generation broadband […]<\/p>\n","protected":false},"author":1,"featured_media":0,"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-84317","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/84317"}],"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=84317"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/84317\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=84317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=84317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=84317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}