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.

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. 

MacDonald, Dettwiler and Associates Ltd. (MDA) reported financial results for the full year and fourth quarter ended December 31, 2012.  Consolidated revenues for the full year 2012 increased to $880 million compared to $761 million for the year ended  December 31, 2011.

Telesat Holdings Inc. reported on Thursday a US$ 206 million (Ca$ 210) decrease in profitability, which the company blamed on a large one-time insurance claim it received last year.

EchoStar Corporation today reported total revenue of US$ 786 million for the quarter ended Dec. 31, 2012 compared to US$ 834 million for the corresponding period in 2011. Total revenue for the fiscal year ending Dec. 31, 2012 is US$ 3,122 million compared to US$ 2,761 million for the corresponding period in 2011.

Bob Zitter, EVP and CTO of Home Box Office (HBO) and Daniel Danker, General Manager of On Demand at the BBC, leading industry players in the OTT space, are set to deliver keynotes at next month’s TV Connect in London. The conference and exhibition, now in its ninth year, has evolved to reflect the changing nature of the converging connected entertainment ecosystem, which increasingly looks towards services, content and user-experience, rather than just technology, to drive the market.

Following the unsuccessful launch of the Intelsat 27 spacecraft on February 1, 2013, majority owner RSC Energia affirmed last week its unfailing commitment to the long-term success of the Sea Launch program. But despite the assurances from the Sea Launch partners, the company faces grim prospects. In addition to its difficulty to now secure launch contracts necessary for its survival, the company also faces a big lawsuit that could dampen prospects of Sea Launch’s emergence from bankruptcy.

Orbital Sciences Corporation today reported its fourth quarter and full year 2012 financial results.  Fourth quarter 2012 revenues were $354.6 million, up 6% compared to $335.5 million in the fourth quarter of 2011.  Fourth quarter 2012 operating income was $31.3 million, an increase of 41% compared to $22.2 million in the fourth quarter of 2011.  

DirecTV reported on Thursday an increase in fourth quarter net income by 31% to $942 million mainly due to addition of  761,000 new subscribers mostly from Latin America.

The satellite TV giant said fourth quarter 2012 revenues rose by 8% to $8.05 billion, operating profit before depreciation and amortization increased by 8% to $1.92 billion, and operating profit rose by 7% to $1.30 billion compared to last year's fourth quarter.