News Skies Reports Narrowing Operating Profits
Downward pressure on transponder pricing caused operating profits to slip at New Skies Satellites N.V. [NSK] during second-quarter 2004, compared with the same quarter last year. Two non-recurring events, including a one-time $32 million cash payment from Intelsat To New Skies, helped to boost net income for the second quarter to $19.5 million, up from $3.1 million for second-quarter 2003. Absent these one-time items, operating profit for second quarter dipped to $800,000.
The Intelsat payment assured it access to an orbital slot, and it boosted New Skies’ revenues for the second quarter to $83.3 million, up from $54.7 million for the same period last year.