MUMBAI: Asian satellite operator, Asiasat, has reported a 37 per cent jump in its first six month‘s turnover to HK $1 billion due to a new finance act in India.
The turnover includes a one-time payment of HK $296 million from customers affected by a new finance law enacted in India, where Asiasat sells satellite bandwidth.
The new Indian Finance Act adds what could be a substantial new tax on foreign satellite fleet operators for certain commercial transactions deemed to be sourced in India. Excluding this one-off item, the turnover was similar to that of during the same period last year.
Profit attributable to shareholders for the six months ended 30 June 2012 rose by eight per cent to HK $395.16 million.
The addition of Asiasat 7 satellite opens up opportunities for near-term business growth before it replaces Asiasat 3S in 2014. New satellites Asiasat 6 and Asiasat 8 under construction, will bring additional capacity for core business growth. Expansion of Tai Po Earth Station enhances capability to provide a wider range of value added services to customers.
Asiasat chairman Ju Wei Min said, “During the first half of the year, the Asia-Pacific region was largely able to weather the economic storms currently being felt in Europe and the United States. In the second half of 2012, there is the possibility that we may begin seeing signs of slower growth, especially given the nature of our industry which tends to lag economic trends, both negative and positive.
“Nevertheless, we remain confident in our ability to deliver sustainable growth based on our reputation for providing highly reliable satellite services and technical excellence as well as our commitment to serving our customers in a professional and responsive manner.”
