OTTAWA – Satellite operator Telesat today reported consolidated revenue of $190 million in the first quarter of the year, a decrease of 9% compared to the same period in 2020.
Adjusted for foreign exchange rate changes, revenue declined 6%. “The largest single contributor to the decrease, excluding the impact of foreign exchange rate changes, was the adverse impact the Covid-19 pandemic has had on certain customers serving the commercial airline and cruise industries,” reads the company’s press release.
Operating expenses of $40 million for the quarter ended March 31st were 12% lower than the same period in 2020. “The decrease was primarily as a result of the reversal of a bad debt provision in the current quarter compared to a bad debt provision in the same period in the previous year. This was partially offset by higher wages due to the hiring of additional employees to support the Telesat Lightspeed program,” continues the release.
Adjusted EBITDA was $152 million, a decrease of 8% compared to Q1 2020. Telesat’s net income for the quarter was $42 million compared to a net loss of $278 million for the quarter ended March 31, 2020. The $320 million difference was the result of non-cash gains on foreign exchange arising principally from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars in the first quarter of 2021, compared to non-cash losses on foreign exchange in the first quarter of 2020, explains the release.
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