Top FSS Operators | No. 5, Sky Perfect JSAT Holdings Inc.

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SkyPerfect JSat’s management appears to agree that the company has been underperforming in recent years and needs to get more aggressive in the regional market, and more efficient in its  operations.

Just 15 percent of SkyPerfect JSat’s revenue is from business outside Japan. EBITDA — or earnings before interest, taxes, depreciation and amortization — margins are lower than those of its competitors. SkyPerfect JSat does appear sluggish next to smaller Asian operators like ABS, Measat, Thaicom and AsiaSat.

The company’s annual report promises management will “drastically reform the cost structure [to] achieve operating costs on a par with global satellite operators.”

Demand for satellite bandwidth in the Asia-Pacific is expected to increase by an average 4 percent per year through 2017, meaning that despite the region’s glut of satellite operators, the market may be able to sustain current transponder price levels.

SkyPerfect JSat intends to operate government-owned satellites — even those with scientific or Earth observation missions — to broaden its revenue base. Another market opening could be in maritime broadband, where SkyPerfect JSat has already won a 100-ship contract.

 

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