[Satellite News 08-18-11] Regional operator Asia Satellite Telecommunications’ (AsiaSat) core market segments have produced double-digit revenue and operating profit percentage increases in the first half of 2011 and are on track for an even faster pace of growth in the second half of the year, AsiaSat’s management confirmed during its latest financial conference call Aug. 18.

   The operator’s 2011 first-half revenue grew 16 percent from its 2010 midway mark to $103 million, backed on 30 percent operating profit growth during the same period. AsiaSat’s incoming Chairman Sherwood Dodge, who replaced retiring Chairman Peter Jackson Aug. 1, said the company remained debt free throughout the period. Dodge added that the company held $307.8 million in cash and equivalents at the end of June — a considerable improvement from its position in December, when AsiaSat VSAT subsidiary SpeedCast CEO Pierre-Jean Beylier told Satellite News that its parent company expected stronger results in 2011. “We see key contributors continuing to be maritime and growth in value-added-service sales, as well as Middle East and Africa regions,” he said.

   AsiaSat CEO William Wade took over for former CEO Peter Jackson halfway through 2010 as the company was planning the launch of its AsiaSat-7 satellite with ILS for late 2011. AsiaSat-7 is configured as a replacement for one of the operator’s flagship satellites, AsiaSat-3S, located at 105.5 degrees East. Space Systems/Loral (SS/L) manufactured AsiaSat-7 with C- and Ku-band transponders and designed the spacecraft for a lifespan of 15 years.

   In its latest results, AsiaSat reported that its three satellites were 80 percent full at the end of June compared with 73 percent full during the same period last year, as the operator had sold or leased 105 transponders on its current fleet. SpeedCast also grew its 2011 first-half revenues by 24 percent compared with the same period last year.

Wade told Satellite News that the company is in strong financial standing and continues to be in the market for acquisitions to boost its regional position in Asia. “People have been talking about consolidation in Asia for a long time. The climate has not been conducive for it, mainly from a political standpoint, but I think the region is looking more attractive now so we are looking at potential targets.”

   Dodge admitted that AsiaSat took a $7.3 million loss during the first half from its Dish-HD Asia Satellite joint venture with EchoStar Corp. The joint venture has seen profits fall steadily since launching operations in June 2010 to provide HD television to Taiwan and the surrounding region.

   “We also took an impairment charge of 23.4 million Hong Kong dollars ($3 million) after writing down the value of Dish-HD assets. The joint venture has underperformed and new measures have been taken to improve its performance,” Dodge said in a statement. “We are considering all options, including a fresh interest in acquisition possibilities in Asia, and will continue to monitor Dish-HD’s performance in the coming months.”

   Separately, AsiaSat announced it has entered into a contract with Asian pay-TV network Fox International Channels (FIC) to provide compression, uplink, play-out, monitoring, maintenance and troubleshooting services for all of the FIC’s channels.

   AsiaSat will provide these services from its Earth station in Tai Po, Hong Kong. Additionally, a new broadcast center will be established and staffed by AsiaSat to host FIC’s equipment and to provide 24/7 broadcast operations for the FIC channel bouquet. The operations were previously handled by FIC out of its Hunghom, Hong Kong location.

   “Outsourcing our broadcast operations to a capable service provider like AsiaSat improves Fox International Channels’ operational efficiency, and enables us to focus on our core competency by taking first-to-market advantage to launch and market channels. This agreement further expands our existing collaboration in achieving total reliability and quality control in the broadcast of our services across the regions,” FIC Vice President of Broadcast Operations Victor Chan said in a statement.