Asia Satellite Telecommunications Holdings Limited, or AsiaSat, reported that licensing approvals are inhibiting growth from its new satellites AsiaSat 6 and AsiaSat 8 during its 2015 interim results for the six months ended June 30. Combined with the challenge of excess capacity in Asian markets and flattening demand in some places, the company felt downward pressure on pricing that it expects will persist into the near future until that capacity is absorbed.
“The first six months of 2015 were challenging for AsiaSat and the satellite sector as a whole. The company does not expect significant positive change in the market environment in the second half. Due to delays in licensing approvals, it is taking longer than expected to lease out the transponder capacity of AsiaSat 6 and AsiaSat 8 while the depreciation of both satellites will commence in the second half of the year,” said Gregory Zeluck, chairman, AsiaSat.
AsiaSat 6 and 8 Growth Cut Short by Licensing Hang-ups - Via Satellite
“The first six months of 2015 were challenging for AsiaSat and the satellite sector as a whole. The company does not expect significant positive change in the market environment in the second half. Due to delays in licensing approvals, it is taking longer than expected to lease out the transponder capacity of AsiaSat 6 and AsiaSat 8 while the depreciation of both satellites will commence in the second half of the year,” said Gregory Zeluck, chairman, AsiaSat.
AsiaSat 6 and 8 Growth Cut Short by Licensing Hang-ups - Via Satellite
