HISPASAT Reports Flat Revenues Overall in 2014 but Increase of 9% in the Americas

Madrid, Spain, February 19, 2015--In 2014, Spanish satellite telecommunications operator HISPASAT, secured a total revenue of 202.1 million Euros, which roughly equates to the 201.4 million made in the previous fiscal year.  Intense commercial action has opened the doors to new markets and more than compensated for the shrinking European economy, the fault registered in the Amazonas 4A and the negative impact of exchange rates. 

HISPASAT succeeded in strengthening its turnover in a year marked by adverse conditions. The anomaly detected in the Amazonas 4A, after the launch of the satellite in March 2014, led to a significant decrease in the capacity available from this satellite, in addition to delaying its release onto the market. In turn, this had a negative impact on reaching predicted revenue levels. Unfavourable exchange rates throughout the better part of the year and the downturn in demand in European markets, with capacity returns and price cuts, did not help either, ending the past fiscal year on a complex note. 

Despite these challenges, the company succeeded in achieving positive turnover in such an adverse environment which facilitated expansion into the Latin American, Central American and North American markets, while  generating a revenue of 119.5 million Euros. This constitutes a 9% increase on 2013 figures in the region. HISPASAT was also able to make further capacity available on the market at 55.5º West, as a result of its agreement with Intelsat. In turn, this facilitated the expansion of services in Latin America.  

As a result of the initiatives taken, not only has the fall in revenue seen in 2014 been slowed down, but HISPASAT's portfolio of clients subscribed to long-term satellite capacity rental contracts has also hit a record high, having reached a back-log figure equivalent to seven years' worth of Company revenue. These figures are furthermore one of the highest held amongst all space telecommunication operators currently in business. In 2013, this back-log equated to a five-fold increase in revenue. 

HISPASAT president Elena Pisonero siad “strengthening the turnover in a year in which we successfully faced a variety of difficulties and setbacks demonstrates the dynamism of the Company's strategy and organisation, upon being able to adapt to significant changes in our line of work. This enables us to present strong, balanced figures and face 2015 with optimism.”

The revenue generated by space capacity rentals amounted to 197.2 million Euros in 2014, 60.6% of which comes from the American market, while 39.4% corresponds to clients located in Europe and North Africa.  

The 2014 EBITDA came in at 161.8 million Euros, which is almost the same as figures from the previous fiscal year. The EBITDA/Revenue margin remained above 80%, exceeding average values in the industry.  

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