OTTAWA – Canadian satellite owner-operator Telesat posted net earnings applicable to common shares of $43 million in the second quarter of 2006, ended June 30th, 63% higher than the second quarter of 2005.
This is largely due to lower enacted future tax rates and the elimination of the large corporations tax in 2006, said the company.
Due to the major one-time sale of an IDL network in the second quarter of 2005, Telesat’s second quarter operating revenue of $119.6 million represented a 13% decrease from $137.3 million in the same period last year. Excluding the one-time sale in the second quarter of 2005, revenue would have shown an increase of 1%.
For the first six months of 2006, operating revenues totaled $237.5 million (2005: $245 million) and net earnings applicable to common shares were $64.6 million (2005: $45.8 million). Cash flows from operating activities were $123.3 million for the first six months of 2006 compared to $96.4 million for the same period in 2005, an increase of $26.9 million or 28%. The increase is due to a significant increase in accounts receivable in 2005 for the IDL network.
However, Anik F3, which was due to launch this month, is sitting in a hangar somewhere. Thanks to a Proton rocket failure earlier this year, the launch of F3 has been delayed for months. "The spacecraft has completed all of its testing at the manufacturer’s facility in Toulouse, France. A Proton launch has been tentatively rescheduled for early next year," says Telesat’s release.
Telesat owner Bell Canada Enterprises re-iterated its plan to offer up a minority of the company in an IPO later this year.
