Abstract
NSR's Satellite Operator Financial Analysis study is a first of its kind
assessment of the key financial metrics for the leading global and regional
fixed satellite services (FSS) operators. The report includes an
operator-by-operator assessment and cross comparison analysis of common and
unique metrics to determine true performance, health and outlook of the FSS
operator community. Key financial assessments undertaken include:
- What are the fundamental financial metrics for FSS operators, and what are
the industry average ranges for conducting a peer review?
- Who are the leading operators for each metric?
- What are the key historical and future trends among the publicly reporting
FSS operators, and what does it mean to the health of the industry?
To answer these questions, NSR presents a detailed assessment of all FSS
operators for which financial data is publicly available supplemented with
industry statics from additional satellite operators. The Satellite Operator
Financial Analysis study consists of three main segments plus a detailed
appendix that offers a wealth of data and industry financial analysis that is
valuable to industry insiders as well as institutions that need to better
understand the FSS sector's performance.
The first segment is an analytically rigorous, statistical assessment of some
of the most important financial metrics. Historical and current data is
evaluated to determine true mean values as well as typical standard deviations
of key metrics. This provides the industry with an authoritative view as well
as a deeper understanding into the meaning of each metric.
The second main segment is a side-by-side ranking of satellite operators based
on their 2010 performance in each specific financial metric. This segment
provides detailed insights into how the individual operators stand in relation
to each other and who leads in each metric. Furthermore, this serves as a
benchmark to analyze individual operators compared to their peers.
The third segment is a one-by-one assessment of each of the leading reporting
operators based on their 2006 to first half 2011 data. This last segment not
only illustrates historical trends per operator, but weighs specific trends as
well as offers projections on the future direction of these industry leaders.
Finally, a detailed appendix provides a single, easily accessible source for
all the key financial data presented within this study.
Detailed Analysis Backed up by Solid Data The detailed statistical assessment
of the key metrics relies on historical data back to 2006 from the leading FSS
operators in the industry. This provides a solid quantitative basis from which
a comprehensive analysis of trends in specific financial metrics can be drawn.
As an example, NSR's assessment of average annual revenues generated per
leased transponder indicates that the typical operator garners US$2.1 million
per year from each leased transponder. However, the relatively large standard
deviation of US$1.5 million implies that more than 68% of the values fall
within the range of US$0.6 million and US$3.6 million, which indicates there
is substantial variability in the average annual revenues generated per leased
transponder from one FSS operator to the next.
Further, the distribution of the values for average revenues per leased
transponder around the mean of US$2.1 million indicates that there are a
number of operators that garner substantially higher average revenues, in
excess of US$4 million per year, while relatively few generate less than US$1
million on average per leased transponder per year. This is mainly an
illustration of strong regional variability in capacity pricing with some
markets, notably Western Europe, typically being able to support quite high
transponder pricing, while more developing markets at times will see much
lower average capacity pricing.
Comparing Industry Peers
The side-by-side ranking of operators is not only useful in illustrating where
each operator stands in relations to its peers, but also helps illustrate
relative scale in the industry as well as variability from one operator to
another in regards the key metrics.
The combined 2010 revenues of the top three FSS operators are about twice that
of the combined revenues of the twenty operators that follow. While clearly
illustrating the scale and importance of the leading global FSS operators
within the industry, it remains NSR's view that there is not truly a " global"
satellite market. Instead, the satellite industry is an aggregate of many
national and regional markets in which a number of the smaller FSS operators
are often a leading or top ranking player. This is one of the key reasons
industry consolidation is so difficult in the FSS sector and why so many
smaller players continue to survive, even thrive, while new regional satellite
operators emerge regularly to address specific country level markets or
regional/application niches.
Individual Operator Statistics
For the fully reporting FSS operators, NSR provides detailed historical data
from 2006 through H1 2011 on all of the financial metrics (except when data is
not reported by the operator itself) in detailed yet easy to absorb tables.
This data is supplemented with specific analysis of trends for each operator
both detailing what occurred in the past and where the operator is headed in
the future. A more limited set of metrics is offered for the partially
reporting and other FSS operators based on the data that is provided by these
companies or obtained from other industry-recognized sources. This one-by-one
assessment offers at a glance all the financial trends as well as providing a
deeper assessment as required for specific needs.
Primary Questions Addressed in this Report Include:
- What are key financial metrics for fixed satellite services (FSS)
operators?
- How does each satellite operator rank against their peers for these
metrics?
- What are the typical averages and spread for these metrics?
- What are the underlying trends for each leading global and regional FSS
operators in terms of these metrics, and where are they likely headed in the
future?
- What are the key issues that both industry insiders and outsiders need to
track in terms of financial metrics and how to interpret them regarding the
FSS sector?
Primary Elements of the Report Include:
- Definition of key financial metrics as well as detailed data for each
reporting FSS operator as well as supplemental data on other, non-reporting
operators.
- Statistically determined means and spreads for the key financial metrics.
- Side-by-side analysis of leading global and regional operators based on
2010 results.
- Individual operator assessment of financial metrics for reporting global
and regional operators based on 2006 to H1 2011 results.
- Over 100+ detailed tables and charts.
- Includes Excel sheets with all key tables and charts.
Primary Clients for the Report Include:
- Satellite operators
- Banks, venture capital and private equity firms
- Analysts from ratings companies
- " Big Box" or " Boutique" analyst firms involved in M&A deals in the
satellite sector
- EXIM banks and other credit agencies
- Satellite manufacturers, launch service providers, satellite insurers and
brokers
- Service providers and resellers of capacity
Table of Contents
1. Introduction
2. General Metrics for Satellite Operators
- 2.1. Annual Revenues (US$) per Operational Satellite
- 2.2. Annual Revenues (US$) per Leased Transponder
- 2.3. Annual Revenues (US$) per Employee
- 2.4. EBITDA Margins
- 2.5. Years of Backlog to Annual Revenues Ratio
- 2.6. Total CAPEX to Cash Flow from Operating Activities Ratio
- 2.7. Total CAPEX to Annual Revenues Ratio
- 2.8. Net Debt to EBITDA Ratio
- 2.9. Total Debt to Total Assets Ratio
3. 2010 Comparative Metrics for Satellite Operators
- 3.1. Revenues (US$)
- 3.2. EBITDA/Adj. EBITDA(US$) and EBITDA Margin
- 3.3. Free Cash Flow
- 3.4. Backlog (US$)
- 3.5. Years of Backlog to Annual Revenues Ratio
- 3.6. Annual CAPEX (US$)
- 3.7. Total CAPEX to Cash Flow from Operating Activities Ratio
- 3.8. Total CAPEX to Annual Revenues
- 3.9. Commercialized Transponders
- 3.10. Fill Rates
- 3.11. Annual Revenues (US$) per Operational Satellite
- 3.12. Annual Revenues (US$) per Leased Transponder
- 3.13. Annual Revenues (US$) per Employee
- 3.14. Net Debt to EBITDA Ratio
- 3.15. Total Debt to Total Assets Ratio
4. 2006-2010 & H1 2011 Individual Satellite Operator Metric Analysis
- 4.1. Fully Reporting Operators
- 4.1.1. Intelsat
- 4.1.2. SES
- 4.1.3. Eutelsat
- 4.1.4. Telesat
- 4.1.5. AsiaSat
- 4.1.6. APT Satellite
- 4.1.7. Amos-Spacecom
- 4.1.8. Satmex
- 4.2. Partially Reporting Operators
- 4.2.1. SKY Perfect JSAT
- 4.2.2. Thaicom
Appendix: Reference Data per Satellite Operator
- Amos-Spacecom
- APT Satellite
- ArabSat
- AsiaSat
- ChinaSat
- Egyptian Satellite Co. (NileSat)
- Eutelsat
- Gazprom Space Systems
- Hispasat
- Intelsat
- ISRO/Antrix
- MEASAT
- PT Indosat
- PT Telkom
- RSCC
- Satmex
- SES
- SingTel Optus
- SKY Perfect JSAT
- Star One
- Telenor Satellite Broadcasting
- Telesat
- Thaicom
