AsiaSat reports flat profit and revenue for 1H16

Hong Kong based AsiaSat has reported largely flat profit and revenue for the first six months of 2016 amid challenging market conditions.

The satellite operator reported revenue for the half-year period of HK$640 million ($82.5 million) and profit attributable to owners of HK$249 million. Contracts on hand also remained stable at HK$3.54 billion.

During the period the company acquired a growing number of customers, including new customers of its new AsiaSat 6 and AsiaSat 8 satellites in mainland China, Bangladesh and Thailand.

Construction of the operator’s newest satellite – AsiaSat 9, which is due to replace AsiaSat 4 – is meanwhile on schedule for completion early next year.

AsiaSat’s chairman Ju Wei Min commented that the company expects business to remain flat for the remainder of the year.

“We do not anticipate any significant changes in market conditions and believe that they will continue to pose a challenge not only for AsiaSat but the industry as a whole,” he said.

He noted that AsiaSat expects not to have to deal with the increased competition from terrestrial providers that is affecting satellite operators in other parts of the world due to the lack of quality terrestrial networks in many parts of APAC.

But he added that “the new contracts signed in the first half will only partially compensate for the expiry of short-term revenue from a to-be retired satellite and the termination of a number of contracts which will occur in the second half due to changes in regulations.”