New Skies Notches Earnings, Revenue Growth

By | August 12, 2003 | Uncategorized

Cost controls, stabilizing prices and additional capacity allowed Dutch satellite services provider New Skies Satellites [NYSE: NSK] to post higher earnings and revenues for the second quarter, compared with the same period last year.

Those results were attained despite a “challenging” environment for satellite services, said New Skies CEO Dan Goldberg. In addition, the difficult market conditions could cause “price compression” during the second half of the year, he added.

Revenues for the second quarter hit $54.7 million, up 11 percent from $49.2 million for the same quarter last year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter increased to $30.7 million, up 14 percent from $30.7 million for the same period last year.

On the downside, net income for the quarter fell nearly 30 percent to $3.1 million, slipping from $4.4 million for the same quarter a year ago. The declined resulted from depreciation stemming from the launch of two new satellites, NSS-7 and NSS-6, company officials said.

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