OTTAWA – Telesat saw third quarter consolidated revenues increase 8% to $238 million year-over-year, the global satellite operator reported this week.
Revenue growth for the period ended September 30, 2013 was principally the result of revenue earned on the Anik G1 satellite, which entered into commercial service last May, and the provision of short-term satellite services to another satellite service provider.
Operating expenses of $52 million were 4% ($2 million) higher than for the same period in 2012 related primarily to an increase in non-cash stock based compensation expense arising from additional stock options granted in 2013, partially offset by expenses incurred in relation to special payments made in 2012.
Adjusted EBITDA was $192 million, an increase of 10% ($17 million) over the same period in 2012. The Adjusted EBITDA margin for the third quarter of 2013 was 81%, compared to 80% in the same period in 2012.
Telesat’s net income for the quarter was $102 million compared to net income of $114 million for the quarter ended September 30, 2012. The unfavorable variation was primarily due to a lower non-cash gain on foreign exchange, which was principally a result of the U.S. dollar strengthening during the quarter relative to the Canadian dollar and thus adversely impacting the translation of Telesat’s U.S. denominated debt into Canadian dollars. The unfavorable variations were partially offset by increased revenue, a decrease in the loss on changes in the fair value of financial instruments and lower interest expense due to refinancing activities.
“I am very pleased with the strong growth in revenue and Adjusted EBITDA we achieved in the third quarter and first nine months of the year compared to the same periods last year,” said president and CEO Dan Goldberg, in the news release. “In light of our favorable performance year to date, the recent entry into service of our Anik G1 satellite, and our industry-leading contractual backlog, we are well positioned to continue to grow our business this year and beyond.”
