spacetoday.net: PanAmSat reports higher profits

Posted: Wed, Jul 16, 2003, 10:33 AM ET (1433 GMT)
Satellite operator PanAmSat reported Tuesday an increase in profits for its fiscal second quarter despite a dip in revenue. In the quarter the company reported a net income of $30.3 million on total revenues of $203.6 million, compared to net income of $19.8 million on $209.2 million of total revenues in the same quarter of 2002. The company said that revenues in the 2nd quarter of 2002 were rather high because of business relaying video for the World Cup, and thus the drop in revenue in 2003. Profits were higher because of decreases in depreciation expenses on satellites and lower tax expenses. PanAmSat CEO Joe Wright told financial analysts that Intelsat's agreement to purchase six of Loral’s satellites for approximately $1 billion may help stabilize the pricing of satellite services, and thus the industry in general.