| For the first nine months of 2003, total
revenues were $613.4 million compared to $615.5 million in 2002 and
EPS was $0.55 per share compared to $0.41 per share for the same period
in 2002, says a company release.
According to Panamsat president and CEO Joe Wright, "It continues
to be a tough environment for our industry, which has unfortunately
launched more capacity than the markets demand. We saw this coming,
focused on the fundamentals of our business and managed for profitability
and free cash flow. Our strategy has worked."
Panamsat has acquired Esatel to add to its Hughes Global Services
HGS acquisition, to fillip its communication capabilities, both
in the air and on the ground section to meet the rapidly growing
government demand. The satellite service provider launched satellites
Galaxy XIII/Horizons-1, which offer the first High-Definition television
neighborhood in the US.
Operating lease revenues were $206.0 million for the third quarter
of 2003, compared to $194.4 million for the same period in 2002.
According to the release, the increase in operating lease revenues
could be attributed to additional government revenues related to
the Company's new G2 Satellite Solutions division and an increase
in network services revenues. These increases were partially offset
by lower video revenues recorded as a result of customer credit
related issues. Total sales and sales-type lease revenues were $4.0
million for the quarter ended September 30, 2003, compared to $4.7
million for the same period in 2002.
Operating lease revenues from video services were $119.0 million
during the third quarter of 2003, compared to $124.9 million for
the third quarter of 2002. This decrease was primarily due to customer
credit related issues and lower occasional services revenues. Overall
video services revenues were $123.1 million in the third quarter
of 2003, compared to $129.6 million in the third quarter of 2002,
says the release.
Operating lease revenues from network services increased to $54.5
million for the third quarter of 2003, compared to $49.4 million
for the third quarter of 2002. This increase in network services
revenues is primarily a result of net new business recorded during
the third quarter of 2003 from network resellers. Operating lease
revenues from government services (previously included within network
services revenues) increased to $21.2 million for the third quarter
of 2003, compared to $6.3 million for the third quarter of 2002.
The $21.2 million for the third quarter of 2003 primarily represents
revenues from the Company's G2 Satellite Solutions division, which
was formed in 2003 after the acquisition of HGS.
Total direct operating costs and selling, general & administrative
costs for the three months ended 30 September 2003 increased by
$5.4 million or 10 percent to $57.9 million as compared to $52.5
million for the same period in 2002. This increase is primarily
attributable to additional costs related to the Company's G2 Satellite
Services division, partially offset by lower bad debt expense and
the Company's continued focus on operational efficiencies including
lower insurance costs.