Satellite Operators Struggle Back to Profitability

With consolidated revenues estimated at $6.15 billion in 2003, the 36 satellite operators of the fixed satellite service (FSS) industry experienced a slight fall in revenues (- 1 percent), as a result of a combination of stagnant transponder demand and decreasing transponder lease price. The decrease could have been stronger if the euro, the trading currency of two of the largest operators (SES Global and Eutelsat), had not strengthened as much against the dollar in 2003, according to an analysis by Euroconsult. Profitability levels of the industry were safeguarded, in line with the reduction in operational and capital expenditures, the analysis added.