2006 interim results (unaudited) 11 september, 2006
TRANSCRIPT
20062006Interim Results Interim Results (unaudited)(unaudited)
11 September, 2006
Agenda
Financial HighlightsFinancial Highlights
Updates on APT’s OperationsUpdates on APT’s Operations
Business OutlookBusiness Outlook
Financial HighlightsFinancial Highlights
Interim Results
1H/2006(HK$ M)
1H/2005(HK$ M)
Turnover 208.0 144.3
Loss attributable to Equity Shareholders
(21.1) (10.4)
Turnover Breakdown By Business
49%44%
7%
43%50%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H/2005 1H/2006
Broadcasting
Telecom
Other
Turnover Breakdown By Region
62%55%
13% 11% 10% 9%5%
11% 10%14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China HK S'pore Indonesia Others
1H/ 20051H/ 2006
Income Statement Breakdown (1)
1H/2006
(HK$ M)
1H/2005
(HK$ M)
Turnover 208.0 144.3
Cost of Services (167.5) (121.1)
Gross Profit 40.5 23.2
Other net income 9.1 22.8
Revaluation gain on investment property
0.1 -
Administrative expenses (35.4) (37.0)
Profit from operations 14.3 9.0
Income Statement Breakdown (2)
1H/2006
(HK$ M)
1H/2005
(HK$ M)
Profit from operations 14.3 9.0
Finance costs (31.0) (8.6)
Share of results of jointly controlled entities (0.5) (2.9)
Loss before taxation (17.2) (2.5)
Income tax (4.5) (8.3)
Loss after taxation (21.7) (10.8)
Attributable to:
Equity shareholders of the company (21.1) (10.4)
Minority interests (0.6) (0.4)
Loss after taxation (21.7) (10.8)
Loss per share – Basic (HK cents) (5.12) (2.51)
Expenses Breakdown
72% 72%
22%
15%
6%13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cost of Services Admin. Exp. Finance Cost
1H/20051H/2006
Cost of Services Breakdown
66% 69%
13%17%
12%7% 9% 7%
0%
20%
40%
60%
80%
Depreciation Insurance Licence & Orbit SlotFees
Satellite-basedTelecom
1H/2005
1H/2006
EBITDA Margin
Note: EBITDA Margin represents earnings before interest income / expenses, other income, taxation, depreciation, amortization, impairment loss and share of results of jointly controlled entities as a percentage of turnover.
46%
59%
0%
20%
40%
60%
80%
100%
YE2005 1H/2006
Transponder
Utilization Rates
As at
30 Jun 06
APSTAR V 69.9%
APSTAR VI 40.4%
Assets & Liabilities
*As at 30 June 2006
Total assets HK$3,525 million
Total liabilities HK$1,487 million
Bank borrowings due within one year
HK$ 126 million
Bank borrowings due after one year
HK$ 933 million
Gearing
73%
42%
75%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
YE/2005 1H/2006
Debt-equity ratio
Debt-ratio
Cash
*As at 30 June 2006
Free cash HK$228 million
Pledged deposit HK$60 million
Updates on APT’s OperationsUpdates on APT’s Operations
Principal Shareholders
Singasat Pte Limited 20.33%
China Telecommunications Broadcast Satellite
Corporation16.26%
CASIL Satellite Holdings Limited 14.95%
China Aerospace Science & Tech. Corporation 8.85%
Kwang Hua Development & Investment Limited
7.40%
67.79%
(including both direct and indirect interests as of 30 June 2006)
APSTAR V: Boosting Edges
High power satellite based on SS/L
FS1300 at 138° E orbital slot
APT has taken up 25 C & 12 Ku
Provides versatile services including DTH, Internet, VSAT services within Asia Pacific region with inter-connection to USA
Operation mission life over 15 years
Boosting the APT’s competitive edges in the marketplace
APSTAR V: High Power & Bridging Pacific
APSTAR VI: High Power & Bridges Pacific
APSTAR VI: Welcome by customers
High-power satellite based on Alcatel SB4100 with 38 C-band and 12 Ku-band
Replaces APSTAR IA at 134°E
Asia Pacific footprints including Hawaii
Operation mission life over 15 years
Welcome by customers
Signed with Intelsat in December 2005
Expand business with combined satellite capacities and ground resources
Provide broadcasting, telecom & uplink services
Explore additional growth potential in IPTV, uplink services in Asia Pacific region
Strategic Alliance with Intelsat
Satellite TV Broadcasting Platform
Establish satellite TV uplink and broadcasting services platform for broadcasting services under the Broadcasting Licence of Hong Kong
As at June 30, 2006, the Broadcasting Platform uplinks and broadcasts up to 64 satellite TV channels, 21% increase from end of 2005
Provides VSAT, wholesales voice, facility management and teleport uplink services to Hong Kong and Asian telecom operators
Provides two-way satellite internet services and teleport uplink services
Satellite-based External Telecom Services
Met the Code Provisions of the Code on Corporate Governance Practices as required by the Listing Rules.
Established the Nomination Committee and the Remuneration Committee for handling appointments and the emoluments of directors and senior executives.
Set up an Internal Audit Team which reports directly to the Audit Committee.
Set up the Internal Control and Risk Management Committee.
Adopted the Code of Ethical Business Conduct for directors, senior executives and employees and Whistle-blower Protection Policy in compliance with the regulations
Corporate Governance
Business Outlook
The broadcasting and telecom businesses will grow slowly
Market competition will still be fierce due to more supply than demand
The price of transponders will still be subject to pressure
APSTAR V and APSTAR VI continue to boost the competitive edges of the Group
APT Satellite Holdings Limited11 September 2006
www.apstar.com