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Hispasat Blames Exchange Rates for Flat 2013 Revenue
PARIS — Satellite fleet operator Hispasat of Spain on June 25 reported flat revenue but increased net profit for 2013, saying its results were hurt by foreign-exchange turbulence.
Madrid-based Hispasat reported revenue of 201.4 million euros ($277 million) for the year ending Dec. 31, up just 0.5 percent from a year ago. At constant foreign-exchange rates, the company said, revenue would have grown by 4.4 percent.
EBITDA, or earnings before interest, taxes, depreciation and amortization, was 81.3 percent of revenue, up marginally from 80 percent a year earlier. Net profit was 54.3 million euros, up 5.5 percent for the year.
For the past several years Hispasat has been generating more revenue in the Americas, mainly South America through its Amazonas satellites, than in its home region of Europe and North Africa. The trend continued in 2013, when 55.6 percent of the revenue was from the Americas.
Hispasat’s shareholding structure changed in 2013 as Abertis, the Spanish infrastructure management company, increased its holdings to 57.05 percent. Abertis recently sold its shares in satellite fleet operator Eutelsat of Paris.
Eutelsat for the moment has retained a minority stake in Hispasat despite concerns that with a representation on the Hispasat board, it has a privileged view of the strategy of what has become a competitor. Eutelsat’s recent purchase of Satmex of Mexico, now named Eutelsat Americas, means it is more frequently in competition with Hispasat for market share in a region with fast-growing demand for satellite bandwidth.
Hispasat launched its Amazonas 4A telecommunications satellite in March. The satellite has a power defect that the company did not mention in its year-end accounts notice but that is expected to reduce its broadcasting ability and result in an insurance payment. Two more satellites are under construction, Hispasat AG1 and Amazonas 4B. The investments are part of Hispasat’s planned spending of about 1 billion euros between 2006 and 2016.
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