(20 August 2008 6:00 pm)

MUMBAI: Asian satellite operator Asiasat has anounced its 2008 interim results for the six months ended 30 June 2008.

The profit during the period was HK$223 million, a decline of 10 per cent. The decrease resulted primarily from the inclusion of a loss of HK$2 million recorded by SpeedCast in first half of the year, the impairment provision of HK$14 million, and a reduction in interest income of approximately HK$18 million owing to the continued fall in bank deposits interest rates.

Turnover for the first half of 2008 was HK$487 million an increase of six per cent. The uplift came principally as a result of the inclusion of SpeedCast’s revenue since Speedcast
became a wholly-owned subsidiary of AsiaSat in the second half of 2007.

Speedcast generated a gross revenue of HK$55 million and made a net contribution of HK$33 million to the group’s consolidated turnover after the elimination of inter-company sales during the period. Revenue was impacted by the migration of broadcast customers in China to new Chinese satellites.

Growth was also held back by a reduction in one-off receipts that totalled HK$1 million compared with HK$8 million in the same period in 2007. The company adds that despite these negative influences upon the revenue in the first half of 2008, it is rewarding to note that its core business improved and that it continued to secure new contracts during the first six months.

This new business helped to mitigate the effect of the lost revenue mentioned above. In fact, the income from new customers in the first half of 2008 almost compensated for the loss of revenue from the Chinese broadcast customers.

Operating expenses in the first half of 2008 amounted to HK$136 million comapred with HK$90 million last year. The increase arose from the inclusion of Speedcast’s expenses and a provision for impairment of trade receivables of HK$14 million.

AsiaSat chairman Zeng Xin says, “The year so far is encouraging; we are the market leader in Asia, are financially robust and are debt-free, and business is positive. We remain totally committed to the future of satellite communication in the Asia-Pacific region and as markets strengthen, we are well prepared for the future.

" I am pleased to report that the improved market conditions recorded at the time of the 2007 Annual Report have continued through the first half of 2008, our 20th year of operation, and that we are optimistic about the future.

" During the period under review, AsiaSat added new customers and achieved increases both in overall utilisation and in the number of transponders provided to customers. This strong performance enabled us to maintain the core turnover at a level only marginally less than that of the corresponding period last year despite the migration of broadcast customers in China to the new Chinese satellites."