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AsiaSat is getting ready for a busy 2014. Its AsiaSat 6 and AsiaSat 8 satellites are likely to be launched in the first half of next year, bringing a lot of new capacity to market and opening up new revenue streams for the company. In its latest six-month results, the company admitted that that a weak economic situation is beginning to affect its customers and Asian competitors, creating a more competitive market.
Nevertheless, the company says the possibilities in key growth markets such as South Asia, Southeast Asia and the Middle East are causes for optimism. William Wade, AsiaSat’s CEO, spoke to Via Satellite about the company’s plans over the next year and how it hopes to see an upsurge in revenues and profits.
VIA SATELLITE: In the company’s recent financial results, profits increased slightly in the six months to the end of June compared to the same stage last year. Given the new satellites that are about to go up, do you expect this figure to significantly increase next year?
Wade: As stated in our 2013 interim results announcement, the stable performance achieved during the first six months of 2013 might not be reflected in the remainder of the year as we expect to feel the full effect of the renegotiated contracts with one of our key customers at terms lower than the previous contracts in the second half. This change will inevitably continue to impact our results. However, we expect the launches of the two new satellites AsiaSat 6 and AsiaSat 8 in 2014 will help improve our performance in 2014 and the years to come. But we also see challenges with intensifying competition as the weak economic situation is beginning to affect our customers and our competitors.
VIA SATELLITE: How much capacity do you hope to pre-sell on AsiaSat 6 and AsiaSat 8? Are you targeting any new verticals for these satellites?
Wade: AsiaSat 6 is a joint venture project with Thaicom, which we will provide new C-band capacity at a new orbital slot of 120 degrees east. Our focus for this satellite will be on market opportunities for video and telecommunications services in mainland China. AsiaSat 8 will be wholly owned by AsiaSat and will be co-located with one of our existing satellites. It will offer Ku-band capacity serving high-growth markets of India, China, South East Asia and the Middle East for DTH, data broadcasting and mobile backhaul applications. We are already pre-marketing these two satellites, and see a lot of interest particularly from markets where there is a shortage of capacity from the domestic satellite operator. We hope to have a reasonable portion of the capacity committed prior to launch.
VIA SATELLITE: How important are AsiaSat 6 and AsiaSat 8 given that the company does not usually launch two satellites in such a short timeframe? What are the challenges in selling the capacity on these satellites?
Wade: The addition of AsiaSat 6 and AsiaSat 8 will expand our fleet of four in-orbit satellites to six, bringing new and high quality C-, Ku- and Ka-band capacity that significantly enhances our capability in entering new markets and providing more diverse satellite services to our customers, and importantly, meeting demand from markets that are facing the shortage of capacity needed to support broadcast and communications infrastructure development. However, there are challenges in several areas. For example, the regulatory environment in some Asian countries is still limiting foreign satellite operators’ access to their domestic market, and some governments have set strict regulations to protect domestic operators. The escalating competition from satellite operators and terrestrial networks, have also added challenges to our sales and marketing efforts.
VIA SATELLITE: What trends have you seen in the Asian satellite market this year? Has the overall market performed better than expected?
Wade: We see increased demand from high-growth markets in South Asia, China and South East Asia where national satellites are not always able to meet the requirements. DTH will continue to be a major driver of demand in Asia. We see rapid expansion of DTH services, in terms of market size and level of penetration in several Asian countries, most notably India and Indonesia, as a result of increasing competition among existing platforms and the entry of new DTH licensees, who are demanding capacity for expansion or for the launching of new services.
VIA SATELLITE: Finally, what are your hopes and expectations for AsiaSat in 2014? What would represent a good 12 months for the company?
Wade: 2014 will mark several major milestones for AsiaSat’s development. We anticipate that new business from our new satellites AsiaSat 6 and AsiaSat 8 will fuel company growth. Furthermore, with AsiaSat 7 eventually replacing AsiaSat 3S in 2014, we will own and operate the most powerful fleet in Asia, providing a comprehensive range of capacity for the expanding broadcast and telecommunications applications in the region.
AsiaSat CEO Expects Tough Few Months Ahead - Via Satellite
..
Nevertheless, the company says the possibilities in key growth markets such as South Asia, Southeast Asia and the Middle East are causes for optimism. William Wade, AsiaSat’s CEO, spoke to Via Satellite about the company’s plans over the next year and how it hopes to see an upsurge in revenues and profits.
VIA SATELLITE: In the company’s recent financial results, profits increased slightly in the six months to the end of June compared to the same stage last year. Given the new satellites that are about to go up, do you expect this figure to significantly increase next year?
Wade: As stated in our 2013 interim results announcement, the stable performance achieved during the first six months of 2013 might not be reflected in the remainder of the year as we expect to feel the full effect of the renegotiated contracts with one of our key customers at terms lower than the previous contracts in the second half. This change will inevitably continue to impact our results. However, we expect the launches of the two new satellites AsiaSat 6 and AsiaSat 8 in 2014 will help improve our performance in 2014 and the years to come. But we also see challenges with intensifying competition as the weak economic situation is beginning to affect our customers and our competitors.
VIA SATELLITE: How much capacity do you hope to pre-sell on AsiaSat 6 and AsiaSat 8? Are you targeting any new verticals for these satellites?
Wade: AsiaSat 6 is a joint venture project with Thaicom, which we will provide new C-band capacity at a new orbital slot of 120 degrees east. Our focus for this satellite will be on market opportunities for video and telecommunications services in mainland China. AsiaSat 8 will be wholly owned by AsiaSat and will be co-located with one of our existing satellites. It will offer Ku-band capacity serving high-growth markets of India, China, South East Asia and the Middle East for DTH, data broadcasting and mobile backhaul applications. We are already pre-marketing these two satellites, and see a lot of interest particularly from markets where there is a shortage of capacity from the domestic satellite operator. We hope to have a reasonable portion of the capacity committed prior to launch.
VIA SATELLITE: How important are AsiaSat 6 and AsiaSat 8 given that the company does not usually launch two satellites in such a short timeframe? What are the challenges in selling the capacity on these satellites?
Wade: The addition of AsiaSat 6 and AsiaSat 8 will expand our fleet of four in-orbit satellites to six, bringing new and high quality C-, Ku- and Ka-band capacity that significantly enhances our capability in entering new markets and providing more diverse satellite services to our customers, and importantly, meeting demand from markets that are facing the shortage of capacity needed to support broadcast and communications infrastructure development. However, there are challenges in several areas. For example, the regulatory environment in some Asian countries is still limiting foreign satellite operators’ access to their domestic market, and some governments have set strict regulations to protect domestic operators. The escalating competition from satellite operators and terrestrial networks, have also added challenges to our sales and marketing efforts.
VIA SATELLITE: What trends have you seen in the Asian satellite market this year? Has the overall market performed better than expected?
Wade: We see increased demand from high-growth markets in South Asia, China and South East Asia where national satellites are not always able to meet the requirements. DTH will continue to be a major driver of demand in Asia. We see rapid expansion of DTH services, in terms of market size and level of penetration in several Asian countries, most notably India and Indonesia, as a result of increasing competition among existing platforms and the entry of new DTH licensees, who are demanding capacity for expansion or for the launching of new services.
VIA SATELLITE: Finally, what are your hopes and expectations for AsiaSat in 2014? What would represent a good 12 months for the company?
Wade: 2014 will mark several major milestones for AsiaSat’s development. We anticipate that new business from our new satellites AsiaSat 6 and AsiaSat 8 will fuel company growth. Furthermore, with AsiaSat 7 eventually replacing AsiaSat 3S in 2014, we will own and operate the most powerful fleet in Asia, providing a comprehensive range of capacity for the expanding broadcast and telecommunications applications in the region.
AsiaSat CEO Expects Tough Few Months Ahead - Via Satellite
..
