The Satellite News Financial Ticker

By | August 23, 2004 | Feature

Week of August 13-19, 2004
Percentage Change
Symbol
Aug. 19 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
1.37
(8.7)
(15.4)
(20.8)
(42.4)
ASIASAT TELECOM SAT
17.75
0.9
7.0
15.3
(6.5)
BRITISH SKY BROADCASTING BSY
34.55
(1.2)
(25.4)
(21.3)
(32.2)
ECHOSTAR COMM -CL A DISH
31.35
4.8
9.1
3.2
(7.8)
THE DIRECTV GROUP DTV
16.85
5.9
0.5
1.8
LORAL SPACE & COMM LOR
0.03
(61.4)
(84.1)
(91.3)
(91.4)
NEWS CORP NWS
31.60
(1.3)
(11.2)
(11.8)
(12.5)
NEW SKIES SATELLITES NSK
7.73
0.5
12.0
8.0
PANAMSAT SPOT
23.45
0.7
1.1
2.0
8.8
PASIFIK SATELIT NUSANTARA PSNRY
0.22
57.1
340.0
PEGASUS COMMUNICATIONS PGTV
21.79
(6.7)
(9.1)
65.7
(22.4)
SES GLOBAL SESF.LU
6.97
1.0
(2.4)
7.1
(12.9)
SIRIUS SATELLITE RADIO SIRI
2.20
1.9
(10.9)
(28.8)
(30.4)
XM SATELLITE RADIO XMSR
27.27
9.1
8.3
17.5
3.7
Operators’ Average
100.00
(3.9)
(5.4)
(3.7)
7.4
Manufacturers
ANDREW ANDW
11.00
12.9
(27.9)
(36.3)
(5.1)
BALL BLL
73.85
1.4
0.6
13.5
24.0
BOEING BA
50.25
1.1
2.3
16.8
19.2
COM DEV INTL *CDV
2.86
(12.0)
27.1
(0.7)
EMS TECHNOLOGIES ELMG
15.63
8.2
3.7
(16.9)
(23.9)
GARMIN GRMN
37.49
0.4
9.8
26.6
(31.2)
GILAT SAT NETWORKS GILTF
4.04
(2.4)
(9.2)
(22.3)
(17.4)
GLOBECOM GCOM
5.49
(0.4)
5.6
6.0
15.6
HARRIS HRS
45.95
2.1
(2.8)
7.6
21.1
HONEYWELL HON
34.95
(1.9)
(4.0)
5.1
4.5
KVH KVHI
7.29
(1.8)
(15.8)
(43.0)
(73.6)
LOCKHEED MARTIN LMT
54.05
2.0
(1.2)
14.8
5.2
LUCENT TECHNOLOGIES LU
3.08
7.7
(7.8)
(2.5)
8.5
MOTOROLA MOT
15.62
9.0
(1.1)
(17.8)
11.6
ORBITAL SCIENCES ORB
10.72
2.8
(17.7)
(11.0)
(10.8)
QUALCOMM QCOM
35.51
3.6
4.0
10.9
31.7
RAYTHEON RTN
33.80
(2.0)
2.4
3.1
12.5
ROCKWELL COLLINS COL
33.85
0.9
(1.0)
15.3
12.7
SCIENTIFIC-ATLANTA SFA
28.25
7.5
(3.8)
(12.4)
3.5
SKY FRAMES SKYU
0.10
100.0
TITAN TTN
12.74
7.8
0.5
(33.6)
(41.6)
TRIMBLE NAVIGATION TRMB
27.40
3.4
17.8
12.1
10.4
VIASAT VSAT
20.02
1.5
5.3
(10.4)
4.6
Manufacturers’ Average
100.00
2.8
2.1
(2.1)
(0.8)
Nasdaq Composite Index
Nasdaq comp
1,819.89
2.1
(3.4)
(4.1)
(9.2)
SP 500 sp50
1,091.23
1.4
(0.9)
(0.0)
(1.9)
SN Stock Price Average
100.00
0.3
(0.8)
(2.7)
2.3

Wall Street Analysis

New Skies Satellites N.V. [NSK], a satellite operator in The Hague, The Netherlands, reported its second quarter 2004 financial results last Thursday and showed that transponder pricing pressure is continuing to curb profits within the sector. Since New Skies operates worldwide, its performance indicates that transponder overcapacity in certain regions is exerting a drag on results.

The company reported that its net income, excluding one-time items, slipped to $800,000 during second quarter 2004, compared to the same period last year when net income hit $3.1 million. However, one-time items lifted second quarter 2004 net income for New Skies to $19.5 million. That boost came from a one-time cash payment of $32 million by Intelsat Ltd. to New Skies as part of an orbital slot coordination agreement that more than offset $2.8 million in one-time costs during the period related to the purchase of New Skies by affiliates of The Blackstone Group, a private equity firm. The Intelsat payment allowed New Skies to boost its revenues for second quarter 2004 to $83.3 million, up from $54.7 million for the same period last year.

Investors seemed largely unsurprised by the results. With New Skies awaiting final approvals to complete its sale to The Blackstone Group, the company’s stock price inched up just 0.5 percent for the week of Aug. 13-19 tracked by our Satellite News stock index. Overall, the stock prices of satellite operators listed in the index fell 3.9 percent for the week, compared to a 2.8 percent rise in the prices of the manufacturers. Those trends are a reversal of the full-year stock price movements among operators and manufacturers tracked in the index. For the past year through Aug. 19, the stock prices of public satellite operators collectively rose 7.4 percent, compared to a 0.8 percent dip in the prices of the manufacturers.

With the closing of PanAmSat’s sale expected shortly after press time and New Skies’ purchase anticipated by year-end, fewer publicly traded operators will remain to give industry observers insights into industry trends. For now, it seems clear that transponder price-cutting is hurting the results for virtually all fixed satellite services operators worldwide.

Paul Dykewicz is senior editor and senior analyst of Satellite News. He can be reached at 301/354-1769 or at pdykewicz@accessintel.com.

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