Panamsat Holdings Corp. reported an increase in total revenue for the second quarter 2005 to $213.8 million, up from $206.8 million in the second quarter 2004. However, the revenue increase was not enough to keep Panamsat profitable, as the company went from reporting a net income of $10.7 million in the second quarter 2004 to a net loss of $32.2 million in the second quarter 2005.

Panamsat was not specific about the factors contributing to the net loss for the most recent quarter, but pointed to a variety of events that impacted the bottom line, including its joint venture agreement with JSat to develop capacity for the U.S. market, the acquisition of the Europe Star-1 satellite and two orbital slots and the company’s activities in Latin America.

For the three months ended June 30, Panamsat reported its Fixed Satellite Service (FSS) revenues increased $9.7 million to $198.4 million from the same period a year ago. The increase was attributed to higher video services revenues due to increases in direct-to-home and program distribution revenues. The FSS revenue gains were partially offset by a reduction in network services revenues, attributed to the expiration of a lease associated with a non-core satellite that was used by a network services customers during the first eight months of 2004. Revenues from Panamsat’s G2 government services segment decreased slightly to $22.5 million for the second quarter 2005 from $22.6 million for the same period in 2004.

“This quarter clearly demonstrates the stability and strength of our business and our ability to deliver opportunities for meaningful growth in our target markets consistent with the prudent management principles we have established,” Panamsat CEO Joseph Wright said in a statement. “We are pleased to increase our guidance for the year on revenue growth from 3 percent to 3.5 percent or more. If we close our Europe Star transaction in August as expected, we anticipate revenues will grow by 4 percent or more.”