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AsiaSat warns of major profit shortfall

17 Jul 2017, 20:33 UTC
AsiaSat warns of major profit shortfall
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WASHINGTON — Hong Kong-based satellite fleet operator AsiaSat warned investors that it is expecting a 28 percent drop in profit for the first half of 2017 due to a trio of losses on top of steep competition in a highly competitive regional market.
In a statement to the Hong Kong stock exchange July 17, AsiaSat said it has not completed its interim results for the first six months of 2017, which it expects to deliver in August, but that the operator’s preliminary assessment of its unaudited financial information projects a significant loss.
AsiaSat reported a net profit of 249 million Hong Kong dollars ($32.1 million) for the six months ended June 30, 2016, roughly equal with 2015 thanks to a one-time HK$41 million tax credit. The absence of that credit, combined with an HK$11 million decrease in “interest being capitalised as cost of qualifying assets,” and an HK$16 million exchange loss are causing the predicted profitability loss.
A 28 percent loss off of last year’s interim profit puts the first six months of 2017 ended June 30 at HK$179 million.
AsiaSat said in March that despite regional oversupply from more than a dozen competitors — both neighbors and ...

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