PANAMSAT Q2 FIGURES IN THE MIX

PanAmSat issued somewhat mixed second quarter results, July 12. The Connecticut-based satellite operator revised its 2001 numbers to show consolidated full-year revenues in the range of $825 to $835 million, rather than the previously-forecast range of $950 million to $1 billion. The company said it reduced operating lease revenue forecasts for the second half of the year by approximately $30 million due to regulatory delays in opening new international markets and the slowdown in the telecommunications market.

Total revenues for the second quarter were $208.2 million, down 35 per cent compared to revenues of $322.2 million for second quarter 2000. The decrease was attributed to new sales-type lease revenues of $123.4 million that were recorded in second quarter 2000 for which there were no comparable transactions in 2001. Total sales and sales-type lease revenues were $5.3 million for the quarter, compared to $129.6 million for the same period in 2000.

Operating lease revenues, which were 97 per cent of total revenues for second quarter 2001, increased by 5.3 per cent to $202.9 million, from $192.7 million for the same period reported in 2000, while operating margins stood at 64.6 per cent.

The news prompted Merrill Lynch to reduce its long-term rating on PanAmSat from ‘Buy’ to ‘Accumulate’.