Panamsat Holding Corp. reported revenues of $213.2 million in the first quarter of 2006, up 2 percent from revenues of $208.8 million in the same period in 2005, the company announced May 11.

Net income was $27.8 million in the most recent three months, up from $1.1 million in the same period a year ago. Earnings in the first quarter of 2006 included a $13.2 million gain on an interest rate swap, while the 2005 first quarter profits were hurt by a $10.4 million expense in sponsor management fees.

Fixed Satellite Services (FSS) revenues improved by $6.2 million to $200.1 million in the first quarter of 2006, primarily due to higher video services revenues of $4.5 million, higher government services revenues of $1.2 million and higher consulting/technical services revenues of $1 million. The increase in video services revenues was primarily due to higher program distribution and direct-to-home services revenues of about $2.8 million and higher occasional use services revenues of $2.2 million due to the 2006 Winter Olympics.

FSS income from operations for the first quarter of 2006 increased by $32.8 million from $69.5 million for the same period in 2005.

Government Services (G2) revenues were $19.8 million for the three months ended March 31, down from $20.4 million a year ago, which included revenues related to the construction of an L-band payload on Galaxy 15. Revenues from managed network services increased by $2 million, and revenues from the lease of additional capacity increased by $500,000.

These increases were substantially offset by a decrease in sales of equipment and other non-satellite products of $2.3 million.

G2 reported operating income of $3.3 million in the first quarter of 2006, compared to $3 million a year ago.

Intelsat Ltd. expects to complete its acquisition of Panamsat, creating the largest FSS operator in the world, before the end of the third quarter, the companies said.