MEDIA RELEASE AsiaSat Reports 2017 Interim Results

Hong Kong, 17 August 2017 - Asia Satellite Telecommunications Holdings Limited ('AsiaSat' - SEHK: 1135), Asia's leading satellite operator, today announced its 2017 interim results for the six months ended 30 June 2017.

Financial Highlights:
  • 1H revenue maintained at HK$642 million (2016: HK$640 million)

  • Value of contracts on hand remained stable at around HK$4,076 million as at 30 June 2017 (31 December 2016: HK$4,067 million)

  • 1H profit attributable to owners was HK$180 million (2016: HK$249 million). The decline was due to higher exchange losses, net finance expenses, staff costs and increased income tax expenses, mitigated by a one-off income arising from the resolution of a long pending tax matter related to the provision of services to a customer

  • New facilities of US$220 million secured, which replaced the US$240 million of bank borrowings of July 2015 with better terms, further strengthening the Group's capital structure

  • Proposed interim dividend of HK$0.18 per share (2016: HK$ Nil per share)

Operational Highlights:
  • Utilisation of AsiaSat 4, AsiaSat 5, AsiaSat 6, AsiaSat 7 and AsiaSat 8 as of 30 June 2017 was 73% (31 December 2016: 67%, which excluding AsiaSat 8 which commenced service at 4ºW in late February 2017)

  • AsiaSat 9, a replacement for AsiaSat 4 at 122ºE and planned for launch at the end of September 2017, will offer additional capacity, wider high-power C-band coverage and new customised Ku-band beams for emerging markets such as Myanmar and Indonesia for Direct-to-Home (DTH), regional video distribution, private networks and broadband services

  • Progressing through the advanced planning stage for the design, procurement and launch of a High Throughput Satellite (HTS) carrying Ka-band capacity to meet increased demand for mobility-led data services

  • Growing roster of broadcast and data customers, with increased capacity use as a result of TV service upgrades from Standard Definition (SD) to High Definition (HD), expanding Occasional Use (OU) services for sports and news delivery, and data services in emerging markets in South East Asia

AsiaSat's Chairman, JU Wei Min, said, "The company entered 2017 with expectations consistent with our sales forecast developed over the previous six months. While net revenues were stable, new customers continue to be attracted by competitive pricing. Thanks to our long- term investments in assets and partnerships, demand for our broadcast services remains strong as we expand into regions still developing their economic and technical capacities."

"However, price pressures remain challenging in a highly competitive environment as a result of the cyclical over-supply of regional capacity and price expectations, particularly for data applications. For the data market there is the expectation that the new High Throughput Satellites (HTS) will lower the price for satellite capacity and even though this ubiquitous coverage from HTS satellite does not yet exist, in our markets, it is affecting our customers' perceptions on pricing levels. The fact that HTS technology is not widely available in the market today and that it is not suitable for all applications or services has led to ongoing misconceptions as to future price levels."

"Nevertheless, we have seen increased demand for mobility-led data services (maritime and cellular backhaul) along with greater prospects for other Ka-band solutions for the aviation sector. In particular, the company has expanded its provision of capacity for China's aviation market. Of all satellite operators providing inflight connectivity within China, AsiaSat provides the most capacity for this application, which is being used to serve several domestic and international airlines flying over China."

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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

Announcement of Unaudited Results for the Six Months Ended 30 June 2017 Chairman's Statement

GENERAL PERFORMANCE

The company entered 2017 with expectations consistent with our sales forecast developed over the previous six months. While net revenues were stable, new customers continue to be attracted by competitive pricing. Thanks to our long-term investments in assets and partnerships, demand for our broadcast services remains strong as we expand into regions still developing their economic and technical capacities.

However, price pressures remain challenging in a highly competitive environment as a result of the cyclical over-supply of regional capacity and price expectations, particularly for data applications. For the data market there is the expectation that the new High Throughput Satellites (HTS) will lower the price for satellite capacity and even though this ubiquitous coverage from HTS satellite does not yet exist, in our markets, it is affecting our customers' perceptions on pricing levels. The fact that HTS technology is not widely available in the market today and that it is not suitable for all applications or services has led to ongoing misconceptions as to future price levels.

Nevertheless, we have seen increased demand for mobility-led data services (maritime and cellular backhaul) along with greater prospects for other Ka-band solutions for the aviation sector. In particular, the company has expanded its provision of capacity for China's aviation market.

Of all satellite operators providing inflight connectivity within China, AsiaSat provides the most capacity for this application, which is being used to serve several domestic and international airlines flying over China.

INTERIM FINANCIAL RESULTS Revenue

For the first half of 2017, revenue was HK$642 million (2016: HK$640 million).

Operating Expenses

Excluding depreciation, operating expenses in the first half of 2017 totalled HK$152 million (2016: HK$117 million), an increase of HK$35 million largely attributable to currency fluctuations and the impact of a one-off reversal in prior period of a staff bonus provision. However, such costs were partially offset by a write back of impairment charges on trade receivables collected during the period.

Other Gains

Other gains for the first half of 2017 were HK$33 million (2016: HK$1 million) mainly due to a one-off income of approximately HK$32 million arising from the resolution of a long pending tax matter related to the provision of services to a customer.

Finance Expenses

Finance expenses were HK$61 million (2016: HK$67 million) of which HK$29 million (2016: HK$46 million) were capitalised as costs for our new satellite, AsiaSat 9. Thus net finance expenses after capitalisation were HK$32 million (2016: HK$21 million) representing an increase of HK$11 million as compared to the prior period.

Depreciation

Depreciation in the first half of 2017 was HK$261 million (2016: HK$261 million).

Income Tax Expenses/Credit

Income tax expenses were HK$51 million, as compared to an income tax credit of HK$7 million in the prior period, representing an increase of HK$58 million, mainly due to the reversal of a tax provision of HK$41 million made in 2016 when we reached an agreement with a tax authority on the treatment of certain revenues and expenses.

Profit

Profit attributable to owners for the first half of 2017 was HK$180 million (2016: HK$249 million), as a result of higher exchange losses, net finance expenses, staff costs and increased income tax expenses, mitigated by other gains as mentioned above.

Cash Flow

For the first six months of 2017, the Group generated a net cash inflow of HK$257 million (2016: net cash outflow of HK$13 million), including payment of capital expenditure of HK$139 million (2016: HK$183 million) and repayment of bank borrowings of HK$144 million (2016: HK$292 million). As of 30 June 2017, the Group had cash and bank balances of HK$497 million (31 December 2016: HK$241 million).

Dividend

The Board declares an interim dividend of HK$0.18 per share (2016: HK$ Nil per share) for this interim period. The interim dividend will become payable on or about 3 November 2017 to equity holders on the share register as at 10 October 2017. The share register will be closed from 3 to 10 October 2017 (both days inclusive).

Refinancing Loans

In July 2017, the Group refinanced the bank borrowings of July 2015 with the new term loans and revolving credits of US$220 million with final maturity in July 2022. The new facilities offered better terms to the Group, further strengthening the Group's capital structure.

Asia Satellite Telecommunications Holdings Limited published this content on 17 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2017 14:36:04 UTC.

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