OTTAWA – Telesat started 2012 with decreases in both revenues and profits.
Consolidated revenue for the first quarter ended March 31, 2012 was down 3% to $196 million compared to the same period in 2011, which the company said was principally the result of a previously disclosed contractual rate reduction on one of its direct-to-home satellites. Adjusted EBITDA was $153 million, a decrease of 3% year-over-year.
Net income dropped to $99 million from $115 million last year due to slightly lower revenues, higher operating expenses and a non-cash loss relating to the write-off of deferred financing fees associated with Telesat’s previous credit facilities.
“I am pleased with our financial and operating performance in the first quarter of 2012”, said president and CEO Dan Goldberg, in a statement. “…(W)e made meaningful progress on the construction of Nimiq 6 and Anik G1, satellites we expect to launch later this year. In light of the significant investments we are making in our fleet and our substantial contractual backlog, we are well positioned to grow our business this year and beyond.”
