HISPASAT increases its net profit 31 percent to 47 million euros
HISPASAT has achieved a new historic maximum in all its financial indicators for the fifth consecutive year. The leading satellite operator in the broadcast and distribution of channels in Spanish and Portuguese obtained, at the close of 2008, 47.0 million euros in consolidated net profits, a 31.6 percent increase over that of 2007. The total revenue of the HISPASAT Group as of December 31, 2008 was 137.5 million euros, a 7.1 percent increase over the previous year. From a geographic perspective, revenues coming from HISPASAT space capacity stand at 68.5 percent from clients based in Europe and North Africa, while those derived from clients in America represent 31.5 percent of total revenue.
Petra Mateos, HISPASAT Executive Chairman, states, "The Group has surpassed its historic maximum profits. This reinforces the soundness of a business model focused on the delivery of quality and high added value services. The important improvement in financial performance and the evolution of remaining indicators reflect the success of the growth strategy followed in recent years, thanks to which HISPASAT is now the seventh company in the world in terms of revenue and a reference in the IT and communications technologies market". Out of total revenue, 97.3% (133.8 million euros) corresponds to space capacity. The remaining 2.7 percent (3.7 million euros) is attributed to R&D&i projects and operations support services and infrastructure.
During this fiscal year, HISPASAT has kept its staunch support for growth in traditional markets associated to large telecommunications operators and broadcasters in the audiovisual sector for whom it distributes more than 1,100 television and radio channels, turning it into the leading operator in Spanish and Portuguese speaking markets. HISPASAT has advanced in rendering Internet access services and IP telephony, infrastructures enabling real convergence of fixed, mobile, data, and video networks and telephony services as well as corporate and governmental environments, telemedicine, distance learning services, and communications in emergency situations in which HISPASAT has outstanding experience. In this scenario, HISPASAT continues promoting a management model based on an efficient business structure, adjusted to present circumstances and compatible with the needs of an organic Growth Plan that will improve the competitive position of the Group in Europe, America, and other areas considered strategic.
As a result of the initiatives considered in this area, the total amount of operating expenses registered in 2008, in percentage of revenues, stood at 19.1%. Said amount represents a 10.1% improvement over the 2007 figure and 36.9% over the 2004 fiscal year. The evolution of previous indicators results in an 80.9 percent EBITDA margin, a figure that represents a 16.1 percent increase over that obtained in 2004. A consolidated EBITDA at the end of 2008 surpassed 111.1 million euros, with a 10.0 percent increase over EBITDA recorded the previous year (100.9 million euros) and 89.9 percent compared to 2004 data.
Financial Strength and Innovative Growth
During this fiscal year, HISPASAT has amortized more than 34 million euros of its bank debt, to reach net debt of 75 million euros, 28.8% below that of 2007. With a Net Debt / EBITDA ratio of 0.75 as of December 31, 2008, a net equity 1.6 times its bank debt and its capacity to generate foreseeable cash flows, HISPASAT can address its three new satellite projects with a solid financial structure and without resorting to the shareholder: Amazonas 2, Hispasat 1E, and AG-1 (SmallGeo), which will involve a total investment exceeding 500 million euros. With this strategy of new launches and the fulfilment of the remaining objectives included in its Growth Plan, HISPASAT will double its revenue and will generate an average annual cumulative increase in EBITDA exceeding 10 percent and a net result of 16 percent, while improving its main profitability indicators. The first launch to take place in 2009: Amazonas 2, in 61° West orbital position. With this new satellite, HISPASAT will double its space capacity over America, it will reinforce its leadership in this continent and will improve its operative flexibility in the area of broadcasting and distributing unbeatable quality audiovisual contents. During 2008 HISPASAT also started the manufacturing process of the Hispasat 1E (30° West) satellite, planned for 2010. Thanks to its configuration and to the technological developments included in its design, Hispasat 1E will enable the Group to meet the growing demand from the development of Digital Terrestrial Television (DTT), from broadband services in fixed and mobile environments, and from High Definition Television (HDTV) in Europe.
With the launch of the geostationary satellite Hispasat AG-1 (SmallGeo) in 2012, the company boosts one of the most avant-garde initiatives promoted by the European Space Agency (ESA) for the development and commercial exploitation of innovative communications payloads. The new HISPASAT satellite will include a state-of-the-art reprocessing payload, REDSAT, on board the satellite, designed to enable a more efficient use of satellite power with the consequent reduction in its communications costs.
Industrial and Technological Boost
With the start-up of its three new projects, HISPASAT is again a key component in the advance of the aerospace and telecommunications industry, being a source of direct and indirect agreements with international suppliers that will enable the Spanish aerospace industry to generate contracts for a total added value of more than 500 million euros. The role of the HISPASAT satellites fleet in the development of the Information Society is still relevant, being one of the most powerful vehicles to provide, irrespective of its location, a wide range of advanced telecommunication services. In this regard, the company is developing a significant component for TDT universalisation, taking channels to areas not covered by terrestrial deployment where the satellite is an essential vehicle to cover the needs of information broadcasting. In 2008 the HISPAPSAT Group continued with its efforts for the innovation and development of technological advances applicable to the new services required by modern society. Particularly, those related to the broadband and audiovisual business, segments to which it supplies solutions increasingly more innovative for the broadcast and distribution of audiovisual contents and High Definition TV signals (Palco HD Project) and 3D ( 3D LIVE Project), both to fixed and mobile terminals.
