MEDIA RELEASE AsiaSat Reports 2016 Annual Results

Hong Kong, 15 March 2017 - Asia Satellite Telecommunications Holdings Limited ('AsiaSat' - SEHK: 1135), Asia's leading satellite operator, today announced its 2016 annual results for the year ended 31 December 2016.

Financial Highlights:
  • 2016 revenue of HK$1,272 million, down 3% compared to 2015 primarily due to reduced short-term revenue from AsiaSat 3S. If excluding the short-term non-recurring AsiaSat 3S revenue, revenue grew by about 3%

  • 2016 profit attributable to owners maintained at HK$430 million (2015: HK$440 million), as a result of lower income tax charges following the reversal of a provision made in previous years

  • Combined new and renewed contracts during the year valued at HK$1,870 million (2015: HK$1,310 million). As at 31 December 2016, the value of contracts on hand increased by 16% to HK$4,067 million (2015: HK$3,517 million)

  • Proposed final dividend of HK$0.20 per share

    Operational Highlights:
  • Utilisation of AsiaSat 4, AsiaSat 5, AsiaSat 6 and AsiaSat 7 as of 31 December 2016 stood at 67% (99 transponders utilised), with AsiaSat 8's entire Ku-band payload fully leased at 4 degrees West and AsiaSat 3S operating in inclined orbit to provide service in Asia

  • AsiaSat 9, a replacement for AsiaSat 4 and planned for launch in late 2017, will offer additional capacity serving new markets for Direct-to-Home (DTH), regional video distribution, private networks and broadband services

  • The acquisition of new customer Shanghai Interactive Television (SiTV) on AsiaSat 6 marked AsiaSat's re-entry into the China video market through establishing a high value platform to support the development of High Definition (HD) broadcasting in China

  • Continued to lead the industry in advanced technology through advocating Ultra HD (UHD) broadcasting in Asia with its free-to-air UHD channel '4K-SAT' on AsiaSat 4, and evaluating opportunities to develop its High Throughput Satellite (HTS) Ka-band capabilities

AsiaSat's Chairman, JU Wei Min, said, "In the coming year, the Board of Directors is cautiously optimistic on the economic prospects for the region, which, despite relatively flat indicators for some markets continues to invest in new telecommunications and media infrastructure, as well as renewing and updating existing facilities. New DTH platforms focused on smaller emerging markets remain attractive, especially given the need for relevant local-language services."

"In order to address the ever-increasing, long-term demand for new data transmission capacity AsiaSat will continue to evaluate opportunities to develop its HTS Ka-band capabilities, carefully monitoring and benefiting from the technical and commercial progress of deployments of IoT, UHD and other consumer driven services," Mr. JU added.

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Media Contacts:

Asia Satellite Telecommunications Holdings Limited

Winnie Pang, Manager, Marketing Communications Tel: (852) 2500 0880

Email: wpang@asiasat.com

ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

Stock Code: 1135

Final Results for the Financial Year Ended 31 December 2016 CHAIRMAN'S STATEMENT Introduction

In 2016, AsiaSat laid the groundwork for the prospect of improved revenues in 2017 as we move into a period of more efficient use of satellite bandwidth and increasing demand for media and data services across Asia. Although disappointing, this year's outcome should be viewed against a backdrop of globally unstable market conditions and the impact of disruptive new technologies.

The market instability resulted from a global oversupply of satellite capacity of all kinds and generally uncertain economic conditions. We recognise the need to continue to manage closely the pricing pressures on data services as well as compression improvements for video distribution which to some extent neutralise the benefits of the increased demand generated by mobility applications and video format upgrades.

Financial Performance

Despite 2016's challenging market environment, the Company continues to invest in stream- lining its sales structure amid changing market conditions and rapidly evolving customer needs.

Revenue

Revenue for 2016 was HK$1,272 million (2015: HK$1,311 million), a decrease of 3% from 2015 primarily attributable to the full-year impact of reduced short-term revenues as compared to the previous year and challenging conditions for customers and markets.

While the decline of revenue is disappointing, if the short-term non-recurring AsiaSat 3S revenue is excluded, in 2016 AsiaSat experienced approximately 3% growth over the previous year.

Operating Expenses

Operating expenses in 2016, excluding depreciation, were HK$244 million (2015: HK$253 million) reflecting our on-going commitment to keep expenses under tight control.

Finance Expenses

Finance expenses were HK$133 million (2015: HK$103 million) of which HK$79 million (2015: HK$26 million) was capitalised to the costs of our new satellite AsiaSat 9. The increase in finance expenses is due to the full-year effect (2015: partial year) of the bank borrowings for the payment of the special interim dividend in July 2015. Net finance expenses after capitalisation

for 2016 were HK$54 million, HK$23 million lower than in the previous year (2015: HK$77 million), due to the increase in finance expenses eligible for capitalisation on the higher level of capital expenditure of the new satellite.

Depreciation

Depreciation in 2016 was HK$522 million (2015: HK$469 million), an increase of HK$53 million, reflecting a full-year of depreciation of AsiaSat 6 and AsiaSat 8, which became operational in the second half of 2015.

Taxation

Tax expenses for 2016 were HK$27 million (2015: HK$92 million), representing a reduction of HK$65 million, or 71%, due to the reversal of a provision made in previous years following agreement with tax authorities on the treatment of certain revenue and expenses.

Profit

Profit attributable to owners for 2016 was HK$430 million (2015: HK$440 million), a decrease of HK$10 million, or 2%, mainly due to lower revenue and higher depreciation charges. This reduction was mitigated by lower net finance expenses and lower income tax charges.

Cash Flow

The Group generated a net cash inflow of HK$3 million in 2016 (2015 outflow: HK$3,101 million). As of 31 December 2016, the Group's cash and bank balances stood at HK$241 million (31 December 2015: HK$238 million).

Cash inflow in 2016 predominantly comprised net cash generated from the operating activities of HK$991 million (2015: HK$875 million), while 2015 also included net proceeds from bank borrowings of HK$1,896 million with no new borrowing raised in 2016.

Cash outflow for the year included capital expenditures of HK$406 million (2015: HK$692 million) and repayment of bank borrowings of HK$523 million (2015: HK$328 million). 2015's cash outflow also included payment of HK$4,874 million for interim and special interim dividends. No dividend payments were made in 2016.

Dividend

For the year ended 31 December 2016, the Board will recommend a final dividend of HK$0.20 per share (2015: HK$Nil per share) in the forthcoming Annual General Meeting to be held on 14 June 2017. No interim dividend was paid for the year 2016.

For the year ended 31 December 2015, a total of HK$12.07 per share was paid, comprising the interim dividend of HK$0.18 per share and the special interim dividend of HK$11.89 per share.

Overall Business Performance

The Group won new contracts during the year totaling HK$1,439 million (2015: HK$533 million), including a significant agreement with Spacecom for the four-year utilisation of the entire AsiaSat 8 Ku-band payload and an increase in capacity taken by new and existing customers across the AsiaSat fleet. Renewed contracts amounted to HK$431 million (2015: HK$777 million), while combined new and renewed contracts amounted to HK$1,870 million (2015:

Asia Satellite Telecommunications Holdings Limited published this content on 15 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 March 2017 14:20:17 UTC.

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