New Skies’ Flat Progress
Netherlands-based New Skies Satellite (NSS) last week reported relatively flat earnings for 2001, up only 6 percent compared to the previous year. Its forecast for this year shows only modest growth.
Revenues for the year ending Dec. 31, 2001, were $209 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were $118.8 million and net income was $33.1 million. EBITDA margins improved from 57 percent to 58.8 percent.
Commenting on the results, the company’s new CEO, Dan Goldberg, says: “2001 was another strong year in which we again delivered on our business plans and objectives. We are very pleased with our results for both the quarter and full year, particularly with the significant annual growth at the net income and EBITDA levels. Against the backdrop of a challenging market for telecommunications services, New Skies achieved, on a pro forma basis, net income growth for the year of 75 percent with a 17 percent increase in revenues. These results are a clear endorsement of the strength of our team and our single-minded focus on growing the business.”
This year promises to be a busy year for NSS with two satellites scheduled for launch – NSS-7 in August and NSS-6 around October. “Importantly,” says Goldberg, “because these new satellites will not be placed into commercial service until late in 2002, they will not have a meaningful revenue impact until 2003. For this reason, as well as the continued challenging economic environment, we expect revenue and EBITDA performance in 2002 to be largely in line with 2001 results.”