APT Satellite Holdings Limited a provider of high-quality satellite transponder, telecommunications and broadcasting services in Asia Pacific, announced its unaudited interim results for the six months ended 30 June 2011.
The Group's turnover for the Period amounted to HK$372,125,000 (2010: HK$363,157,000). Profit attributable to equity shareholders rose 5.77% year-on-year to reach HK$103,134,000 (2010: HK$97,507,000). Diluted earnings per share was HK 16.59 cents (2010: HK15.71 cents). Given the Group has achieved an increase of 5.77 % in profit attributable to equity shareholders for the
first half of 2011 and the need of the implementation of APSTAR 7 and APSTAR 7B Satellites for the replacement of APSTAR 2R, the Board has resolved to declare an interim dividend of HK2.00 cents per share for the six months ended 30 June 2011
Mr. Cheng Guangren, Executive Director and President of the Group, said, The Group's in-orbit satellites and their corresponding ground TT&C (telemetry, tracking and command) systems and earth stations have been operating under normal condition during the Period and continued providing reliable service to the Group's customers. As at 30 June 2011, the overall transponder utilisation rate of the Group was 77.64%. During the Period, the Group has maintained an EBITDA margin of 81.8%.
The in-orbit satellite of the Group, APSTAR 2R, APSTAR 5, and APSTAR 6 have maintained high utilization rates over the Period. As at 30 June 2011, their utilization rates were 84.13%, 78.87%, and 72.58% respectively, whereby the Group could continue to achieve successful performance during the Period.
For the purpose of replacing APSTAR 2R in 2012, the Group has invested in the construction of APSTAR 7, which is a Spacebus 4000 C2 Platform high-power geostationary communication satellite with 28 C-band and 28 Ku-band transponders. The C-band transponders of APSTAR 7 provide the same coverage as APSTAR 2R to ensure seamless service transition for customers from APSTAR 2R to APSTAR 7. The Ku-band transponders are built with China Beam, Middle East and North Africa beam, African beam, and Steerable Beam, thereby further enhancing the coverage and capacity of the Group's satellite resources. The construction progress of APSTAR 7 has been smooth and the satellite has entered into the final assembly, integration and test stage.
APSTAR 7 is expected to be delivered in January 2012 and launched by the Long March LM-3B Enhanced Version launch vehicle of China in the first quarter of 2012.
The Group has also invested in the construction of APSTAR 7B satellite , as a backup satellite of APSTAR 7. In the event that the launch of APSTAR 7 satellite is unsuccessful, APSTAR 7B will be launched in the third quarter of 2012 or earlier to fulfill the mission of replacing APSTAR 2R. Once APSTAR 7 is launched and has replaced APSTAR 2R successfully, the Group will transfer APSTAR 7B to China Satellite Communications Company Limited. This back-up satellite is a very successful arrangement because the Group can save an enormous amount of back-up satellite investment.
Mr. Cheng commented, "The pre-launch sales of APSTAR 7 has been successful. Subsequent to the signing of service agreement with HBO, the Group has successfully signed new service agreements with other customers for APSTAR 7 during the Period. Meanwhile, the construction progress of APSTAR 7B has been smooth and the satellite entered into the subsystem's assembly, integration and test stage. APSTAR 7B is expected to be delivered in June 2012, if necessary. The Group has secured the launch insurance for the launch of APSTAR 7 and APSTAR 7B (if necessary) at a very satisfactory insurance premium rate".
The Group's broadcasting services are delivered through its wholly owned subsidiary, APT Satellite TV Development Limited, which will continue to provide TV broadcasting services under the Non-domestic Television Programme Service Licence. Broadcasting services are very important value-added services for the transponder business. During the Period, the Group has signed new channels through the existing MCPC Television Platform in APSTAR 6.
APT Telecom Services Limited, a wholly-owned subsidiary of the Group, provides satellite-based external telecommunication services such as VSAT, facilities management services, satellite telecommunications and satellite TV uplink services to telecommunications operators and satellite operators in the region under the Fixed Carrier Licence of Hong Kong. In addition, the Group has re-formulated the business strategies of both TV broadcasting services and telecommunication services and has been strengthening the business activities and development of the two relevant companies.
Looking ahead, Mr. Cheng commented, "On the basis of maintaining the high utilizations of APSTAR 2R, APSTAR 5 and APSTAR 6, the Group will leverage the growth potential arising from APSTAR 7 for maximizing profit and future business growth. Meanwhile, the Group will closely monitor the implementations of APSTAR 7 and APSTAR 7B Satellites in an effort to ensure continued business growth for the Group in future."
