Communications space revenues in the second quarter of 2006 climbed by about 14% to NIS 403 million
29.8.2006
Space Communications, operator of a loaded satellite, continues to show improvement in its areas of activity. The company's revenues in the second quarter of 2006 climbed by about 14% to NIS 403 million. Its operating profit jumped by 30% to NIS 17.8 million. The financing income section shakes up the company again and this time in its favor, when it transfers it to a profit of NIS 24.1 million, compared to a loss of NIS 8.8 million. The increase in revenues is mainly due to service to new customers and an increase in the company's share of revenues from the Amos 1 and Amos 2 satellites.
The company generated financing income of NIS 13.3 million in the second quarter, compared to financing expenses of NIS 25.5 million in the corresponding quarter. The expense is non-current and results from exchange rate differences. Halal reports its financial results in shekels, even though its activities and obligations are done in dollars. The company's total liabilities reach almost 600 million shekels, most of them in dollars. As a result, the company generates income or financing expenses that do not involve cash flow and result from changes in the exchange rate of the shekel against the dollar. Since in the previous quarter the dollar strengthened and financing expenses increased, this transferred it to a net loss. In the second quarter, the dollar weakened against the shekel, so the company generated financing income. The company has already announced in the past that it asked the Securities and Exchange Commission to switch to dollar reporting, which would prevent it from being affected.
The company's cash flow from current operations was strong and amounted to NIS 23 million, similar to the corresponding quarter of the year.
BOOM launched a project to provide satellite television services in Romania using Amos satellites
12.5.2006
In the photo from left to right: David Polak - CEO of Space Communication, Dori Dankner - Chairman of "Boom", Isaac Waldman - CEO of "Boom", Oded Bar - Vice President of Sales of Space Communication
The BOOM company that provides satellite TV services (DBS) in Romania held a launch event last Thursday with the participation of the company's owners and management. Space-Communications CEO David Polak participated in the launch event as a guest of the company's CEO Mr. Isaac Waldman. Halal-Communication provides satellite services to BOOM on an Amos satellite and recently signed a multi-year contract with it for the distribution of the channels in Romania and the countries of the region.
BOOM which is owned by Elran Investments, Milomore, R.P. Capital and private investors, is launching a high-quality DBS service and foresees a potential for rapid growth in the Romanian market, which is currently mostly controlled by cable companies with outdated infrastructure. BOOM is also considering leveraging the investment in Romania and expanding to other markets in the region.
Space Communications extended the contract with the Romanian DBS
23.4.2006
Halal Communications, which provides satellite communication services through Amos-1 and Amos-2, announced that it signed an expansion agreement with a Romanian company (the DBS company) to provide satellite services for the DBS project.
According to the amendment to the original agreement, from May of last year, the DBS company will exercise the option given to it, to lease an additional space segment from space immediately, and has committed to lease an additional satellite segment in Amos-3, subject to the start of its operation, no later than June 2008.
The companies also extended the period of the agreement by about five years, until the end of 2020. In addition, the company reported that the payments for the first half of 2006 will be postponed to the second half of the year. Following the amendment of the agreement, the company's revenues from this agreement are expected to grow to 90 million dollars cumulatively, compared to 34 million dollars in the original agreement. 11 million dollars of the amount is expected to be received in its first three years, and the balance in the following years.
Halal reported in February that its net loss in 2005 amounted to approximately NIS 8.2 million, despite a 63% growth in revenues that year. The company purchased the Amos-3 satellite from the Aerospace Industry and raised NIS 370 million by issuing bonds to finance the transaction.
Chaval Communications signed contracts for satellite services in Russia and Lithuania for one million dollars
27.3.2006
Halal Communications, which provides satellite communication services through the Amos 1 and Amos 2 satellites, recently signed long-term contracts for the distribution of TV channels totaling one million dollars. Chall will provide the services via the Amos 2 satellite to companies in Russia and Lithuania that operate local TV channels.
David Polak, CEO of Halal Communications, said that the company intends to expand its operations in these and other markets. Chall currently provides similar services to other countries in Eastern and Central Europe such as Ukraine, Romania, Hungary, Slovenia, Croatia and Bosnia.
According to him, the company continues to consistently increase the occupancy rates on the Amos 2 satellite which stood at 2005% at the end of December 75.6. The long-term order backlog of Halal Communications is $372 million. Halal Communications earned NIS 5 million on a turnover of NIS 41 million in the fourth quarter of 2005. This compares to a loss of NIS 7.5 million on a turnover of NIS 44 million in the third quarter of this year. The equity capital of Chalal Communication is NIS 105 million and the company's market value is NIS 295 million after an 18% decrease in the last 12 months.
Space Communication provides satellite communication services. The company controlled by Eurocom, Mr. Industries, the Aerospace Industry, and the group of founders (22% each) markets satellite segments of the Amos 1 satellite for the Aerospace Industry. The company also owns the Amos 2 satellite, which was launched in December 2003 and began commercial operations in April 2004.
Chalel Communications, which trades at a value of NIS 290 million, ended 2005 with a loss of NIS 8 million due to heavy financing expenses. The financing expenses resulted from the devaluation of the shekel against the dollar, which had a negative effect and increased the dollar liabilities that financed the purchase of the Amos 2 satellite.
However, it is worth noting that the company's dollar report actually indicates a profit of NIS 25 million and that the company generated a surplus of NIS 77 million in cash flow from current operations.
The space also had an EBITDA of NIS 128 million in 2005. That is, Chall is currently trading according to an EBITDA multiplier of 2.2. The use of the EBITDA figure is very relevant regarding space because of the nature of its activity - large investments at the beginning, and a revenue stream that covers them later. Chall is expected to launch the Amos 2007 satellite by the end of 3, which will help its growth.
Chalal Communications lost 8.3 million dollars in 2005 due to the devaluation of the shekel
24.2.2006
Chalel Communications, operator of the Amos satellite, ends 2005 with a net loss of NIS 8.3 million compared to a profit of NIS 11.2 million in 2004. The high financing losses amounted to NIS 82 million in the reporting year, compared to NIS 5.3 million in 2004. The financing expenses resulting from the devaluation of the shekel against the dollar and the expenses for raising bonds - led the company to a loss.
Despite the net loss, Space Communication shows an improvement in almost all other parameters. The company's revenues actually increased by 64% to NIS 157 million, with the company registering a more than three-fold increase in operating profit to NIS 70.8 million. This is alongside an improvement in the cash flow from current operations, which amounted to NIS 77.1 million - an increase of 78% compared to 2004. The revenues resulted mainly from receipts for the Amos 2 satellite. The company's EBITDA (operating profit before expenses, financing, depreciation and tax) amounted to 125 million NIS.
The fourth quarter of 2005 was ended by Haval Communications with revenues of NIS 41.1 million and a profit of NIS 4.5 million. The company's backlog of orders as of the end of 2005 stands at 372 million dollars.
In order to avoid the effect of the shekel reporting, when the company's activities are done in dollars - Chalal Communications requests it for several quarters to switch to dollar reporting, a confirmation that is currently being delayed by the Authority. For dollar liabilities that amount to 120 million dollars (on a balance sheet that amounts to about 200 million dollars), so a depreciation of the dollar's exchange rate requires the company to record financing expenses while according to the accounting rules it cannot value its income. "If we were to switch to accounting reporting in dollars, we would report a profit of 5 million dollars", says the CFO, Itzik Shinberg, "the reporting rules are really an anomaly for us". In connection with satellite activity, Amos 3 will be launched at the end of 2007 and will enter into operation in March 2008 and will replace Amos 1. At the same time, we are conducting negotiations with a number of customers to increase the number of customers and the hand is still tipped", he adds.
