Telesat Revenues Up in 1Q
Ottawa, Canada, May 3, 2013 — Telesat Holdings Inc.’s first-quarter revenues increased by 12 percent year-over-year to US$217 million (CAD 219 million) while EBITDA increased 12 percent to US$ 168 million (CAD 170 million).
Telesat said revenue growth was principally the result of the successful deployment of the Nimiq 6 satellite in the second quarter of 2012 and higher equipment sales.
Operating expenses of US$49.6 million (CAD50 million) were 40% US$32.7 (CAD33 million) lower than for the same period in 2012. The adjusted EBITDA margin was unchanged at 78 percent.
First quarter net result, however, showed a loss of US$ 96.23 million (CAD 97 million) from net income of US$97.22 million (CAD 98 million) a year earlier due to forex losses. Telesat said results were also negatively impacted by a noncash loss on changes in the fair value of financial instruments, which resulted primarily from Telesat’s notice to redeem its 12.5% Senior Subordinated Notes and consequent write-off of the related prepayment option.
Dan Goldberg, Telesat’s President and CEO, said that compared to the same period in 2012, Telesat experienced meaningful growth in revenue and Adjusted EBITDA as a result of continued investments in its satellite fleet and discipline on the cost side of our business.
He said the company’s decision to re-price certain term loan facilities and redeem its 12.5% Notes will reduce borrowing costs and support improvement in its cash flows.
However, Telesat said a backlog worth US$4.96 billion (CAD 5 billion) at the end of March and the recent launch of its Anik G1 satellite, the company expects further growth in the rest of the year.
Related Articles
