For most satellite service providers and teleports, satellite capacity is the single largest Operating Expense (OPEX) cost item and is therefore key to their profitability. This is traditionally also one of the most difficult cost elements to manage, especially for service providers who provide data services for VSAT and trunking.

The launch of the first commercial communications satellite (Intelsat1, nicknamed “Early Bird”) on 06 April 1965, the commercial satellite industry has seen declining technology risks but still remains fraught with many business risks. It is a capital-intensive industry with high barriers to entry. An aspiring satellite operator faces the difficult decision of investing hundreds of millions of dollars up to three years before the satellite takes its flight and stabilizes in its orbital slot.

Jean Loïc Galle, President and CEO of Thales Alenia Space,  and Nikolay Testoedov, General Designer and General Director of ISS – Reshetnev  Company, signed an agreement on February 28 for the creation of a Joint Venture between their two companies.

The signing of the agreement  took place in Moscow, in a ceremony attended by leading authorities from  France and Russia, including presidents François Hollande and Vladimir Putin, Vladimir  Popovkin, head of the Federal space agency (Roskosmos), and Jean de Gliniasty., French  ambassador to Russia.

Intelsat S.A. reported it suffered a net loss of $146.6 million on revenue of $2,610.2 million in 2012. The company reported EBITDA of $1,940.6 million, and Adjusted EBITDA of $2,016.5 million, or 77 percent of revenue, for 2012. 

Intelsat posted revenue of $672.4 million and a net loss of $3.7 million in the last quarter of 2012.  The company EBITDA, or earnings before net interest, loss on early extinguishment of debt, taxes and depreciation and amortization, was $520 million, while its Adjusted EBITDA was $516.5 million, or 77 percent of revenue, in the last quarter. 

Deutsche Telekom, the German telecoms group, declared on Thursday it was able to achieve its financial targets for 2012. However, the company downplayed a year-end net loss of €5.3 billion (US$6.93 billion), which it attributed to an impairment loss of €7.4 billion (US$9.67 billion) in the third quarter over the planned merger of T-Mobile USA and MetroPCS.

RTL Group reported on Monday revenue rose 4 percent reaching a record €6 billion (US$7.84 billion) in 2012 but profits of €690 million (US$901.58 million) were down 13.2 percent from €795 million (US$1.038 billion) last year.

Satellite operator SES reported today its revenue increased by 5.5% to EUR 1.828 billion (US$2.41 billion) in 2012 compared to EUR 1.73 billion (US$2.28 billion) in 2011 raising profit by 5% to EUR 648.8 million (US$855 million).

SES also reported a 5.6% increase in EBITDA to EUR 1.346.6 billion (US$1.775 billion) compared to EBITDA in 2011 of EUR 1.274.6 billion (US$1.68 billion).

Romain Bausch, President and CEO, said 2012 was a highly successful year even with the German analogue broadcasting switched off, taking EUR 108 million (US$142.37 million) out of SES revenue.

Hispasat, increased its revenue in 2012 to 200.3  million euros, (US$264.1) increasing by 6.85% over the previous year largely because of increase in volume of business in Latin America.

Hispasat, the Spanish satellite communications operator, said consolidated EBITDA stood at 161.1 million euros (US$212.29), 4.15% more than in 2011, and the EBITDA margin continued to remain above 80%. The company also recorded new investment of 168.2 million euros (US$221.8) in 2012, increasing the company´s net equity by 6.23% from 2011.

As broadband subscribers approach 635 million globally, the latest figures published by the Broadband Forum and prepared by broadband industry analysts Point Topic reveal that hybrid fiber access (FTTx) has experienced the highest market gain over the past year. Of the 54 million new broadband subscribers added in the year leading up to 3Q 2012, 26 million are being served with fiber (48%). Overall, fiber deployments have now passed cable to account for 19.7% of the total broadband market.

SES  announced today that satellite continued to increase its household reach in Germany last year, with 18.07 million households receiving their TV directly from satellite at the end of 2012. This increase of 524,000 households from year-end 2011 (plus 3 percent) is despite the switch-off of the analogue satellite signal in April 2012 and is driven by continued strong consumer demand for the large programme offer and quality of satellite TV, especially in High Definition (HD).