ASIA PACIFIC NEWS
This is an excerpt from APT's annual report with my own comments added:
Review of Operations
APSTAR-I and APSTAR-IA, the Group's first two satellites, were approximately 90% leased during the year 1997. These two satellites have provided customers with high quality and reliable transponder services and generated a satisfactory amount of revenue for the Group. In the second half of 1997, despite the turmoil in Asian financial markets and the consequent economic slowdown, the leasing revenue derived from the Group's satellite transponders was not affected as the leases were concluded on a long-term basis and denominated in U.S. dollars.
APSTAR-IIR, the Group's third satellite, has provided customers with transponder services progressively and boosted the Group's profits since its commercial operation commenced on 1 January 1998. The operation of APSTAR-IIR increases the number of the Group's transponders from 48 to 92, the service band has expanded from C-band to Ku-band, and the footprint of the APSTAR System has stretched from the Asian region to more than 100 countries in Europe, Africa and Australia, covering 75% of the world's population. The service life of APSTAR-IIR will be up to the year 2013, which will contribute to long-term, steady and significant profits for the Group. Due to the adverse economic condition in the Asian region, together with a slowdown in the demand for satellite transponders, the growth in the leasing of APSTAR-IIR has been slower than expected.****NOTE--this is a Loral built bird--also, the lease rate is a pitiful 25% at this time on Apstar IIR*****Group is confident that the leasing of APSTAR-IIR will gradually improve through diligent market effort and upgrading of services.****They expect 100 fewer transponders in the region due to cancellations/delays******
Maintaining a stable earnings base for steady expansion
Although the Asian economies have encountered uncertainties recently, the Group should be able to overcome the difficulties and challenges that lie ahead with its operating strength, the competitive edge of the APSTAR System and its sound financial position. The Group will continue developing new markets, expanding its market share and increasing utilization of satellite capacities while reinforcing its existing operations, so as to enable the Group to maintain stable business growth in the coming years.
Along with the gradual recovery of the Asian economies, the demand for satellite transponders will be back on its growth momentum and the leasing of APSTAR System will improve further. Meanwhile, the Group will continue discussions with PRC authorities and enterprises on the cooperation of satellites transponder business, including direct broadcasting satellite, for further market expansion as well as business exploration in order to strengthen the Group's position as the leading satellite transponder service provider in the Asian-Pacific region.
****PSN, which is a major partner in ACeS, is looking for alternative financing for the ACeS project. The Indonesian bank that was to provide the cash is unable to do so at this time. This comes on the back of a significant delay in the building of the satellite(3 months). PSN also reported crappy earnings last week, as you might expect.****
***A Lockheed built sat(Chinasat)was launched aboard a Chinese Long March yesterday. How did they get that waiver? How much did they donate? Did they assist the Chinese in any way? Did they transfer technology?**** |
