AsiaSat’s profit up 20% to HK$367m in 1H 2011

And turnover for the first half of the year amounted to a whopping HK$802m.

Improved financial performance
Asia Satellite Telecommunications Company Limited is a long-established premium satellite operator with prime orbital slots, relaying high power signals across footprints that stretch from Australasia to the Middle East and Russia. This competitive edge positions the Company to capitalize on the continuing expansion of communications and video taking place across the markets we serve.

This situation held true in the first six months of 2011 which saw continued growth for AsiaSat. The generally favourable economic climate in the region stimulated growth across most of our customers which include broadcasters, content providers, telecommunications operators, broadband service providers and occasional-use clients engaged in satellite news gathering, video contribution and distribution services. The increase in demand and our Company‟s attractive service offering enabled us to improve on our financial performance as compared with the same period last year.

INTERIM RESULTS

Turnover
Turnover for the first half of 2011 was HK$802 million (2010: HK$690 million), representing an increase of 16% over the same period last year. This was primarily the result of continued growth in our core business, bolstered by significant contracts from new customers.

SpeedCast Holdings Limited, reported first-half revenue of HK$118 million (2010: HK$95 million), an increase of 24% compared with the corresponding period in 2010 due to continued strong demand from customers in the broadband and maritime sectors.

Operating expenses
Operating expenses in the first half of 2011, excluding depreciation, totaled HK$175 million (2010: HK$166 million), representing an increase of 5% compared with the first half of 2010.

This was mainly the result of incremental staff costs arising from headcount growth and was partially mitigated by savings in satellite insurance and savings in mainland China business tax.

Profit
Profit attributable to equity holders for the first half of 2011 was HK$367 million (2010: HK$305 million), an increase of 20%, achieved mainly as a result of strong revenue growth, greater interest income and careful management of costs during the period.

Cash flow
For the six months to 30 June 2011, the Group generated a net cash inflow of HK$97 million (2010: HK$618 million) after capital expenditure of HK$267 million (2010: HK$202 million) and dividends of HK$176 million (2010: HK$125 million). In the same period last year over HK$400 million was received from customers‟ deposits and a bid bond refund. As of 30 June 2011, the Group reported a cash and cash equivalents balance of HK$2,383 million (31 December 2010: HK$2,286 million) and continues to be free of debt.

Dividend
The Board has decided to declare an interim dividend of HK$0.08 per share (2010: HK$0.08 per share), which will become payable on or about 3 November 2011 to equity holders on the share register as at 7 October 2011. The share register will be closed from 3 to 7 October 2011, both days inclusive.