CONNECTICUT US: Panamsat has reported financial results for the first quarter ended 31 March.
Revenues were $199.8 million, compared to revenues of $207.1 million for last years first quarter. Operating lease revenues decreased to $195.4 million compared to $201.4 million for the same period last year. The company has attributed the decrease in operating lease revenues to lower termination fee revenue of $7.7 million and lower occasional use services revenue of $2.7 million
On a positive note the decreases were offset to a certain extent by net new business related to network services, as well as revenues related to the company's new G2 Satellite Solutions division, which was formed as a result of the acquisition of Hughes Global Services last month. Total sales and sales-type lease revenues were $4.3 million for the quarter compared to $5.8 million for the same period last year.
During the quarter Panamsat added future revenue and backlog after new agreements with Equity Broadcasting, The Health TV Channel, ARY Digital and others.
Looking at the future Panamsat CEO Joe Wright said, "There are expansion opportunities in our industry today and we are reviewing them. We will act on those that relate to our current service offerings, match the needs of our customers, offer near term growth opportunities at a low risk, and provide a good return for our shareholders. We are particularly interested in exploring areas such as Video-On-Demand, Digital Store and Forward, HDTV, Broadcast Services and Government Services.
While many in our sector are wrestling with the overall weakness in our industry, Panamsat saw this situation occurring two years ago, and made the necessary changes. As a result, Panamsat is now stronger than at any time in its history. Not only have we delivered excellent financial results quarter-after-quarter, but we also completed the rebuilding of the Company and have initiated our growth programme. The acquisition of HGS and the rollout of our hybrid fiber/satellite offering were two critical advances we achieved in the first quarter."
