OTTAWA – Telesat saw 2013 consolidated revenues jump 6% to $897 million year-over-year on the backs of two of its newest birds, while net income jumped to $68.1 million, more than double the $24.4 million reported in 2012.
For the year ended December 31, 2013, the global satellite operator said that when adjusted for foreign exchange rate changes, revenue increased by 5% compared to 2012 mainly due to revenue earned on the Nimiq 6 and Anik G1 satellites which entered into commercial service in June 2012 and May 2013, respectively. The increase was partially offset by a decrease in revenue earned on Nimiq 1 and Nimiq 2.
Operating expenses of $201 million were 18% lower than in 2012, or 19% lower when taking into account changes in foreign exchange rates. Adjusted EBITDA was $711 million, an increase of 9% over the prior year, and the adjusted EBITDA margin for 2013 was 79%, up from 78% for 2012.
For the three month period ended December 31, 2013, consolidated revenues were $224 million, a dip of approximately 2% year-over-year. When adjusted for foreign exchange rate changes, revenue dropped 4% compared to the same period in 2012, driven mainly by lower equipment sales revenues and lower revenues from Nimiq 1 and Nimiq 2. Operating expenses were $50 million, down 17% compared to 2012.
Adjusted EBITDA for the fourth quarter of 2013 was $178 million, a 3% increase compared to the fourth quarter of 2012, and an increase of 1% when adjusted for foreign exchange rate changes. The adjusted EBITDA margin was 79% compared to 76% for the same period in 2012, and net income fell to $44.3 million from $55.3 million last year.
Telesat said that as of year-end, it had contracted backlog for future services of approximately $4.9 billion. Fleet utilization was 90% for its North American fleet and 82% for its international fleet.
“I am pleased with our strong financial performance, the successful entry into service of our Anik G1 satellite, the procurement of the Telstar 12 VANTAGE satellite and our ability to reduce borrowing costs by re-pricing and amending our credit facilities”, said president and CEO Dan Goldberg, in a statement. “Our substantial investment in satellite capacity combined with our industry-leading contractual backlog provides visibility into the stability of our future revenue and cash flow and positions us well for 2014 and beyond.”
