OTTAWA – Soon-to-be spun-off satellite operator Telesat posted record highs in revenue and earnings in 2005, the company reported Friday.
Bell Canada Enterprises, which owns Telesat, announced last month it plans to do an initial public offering on the satellite subsidiary some time in 2006, as previously reported.
Telesat’s 2005 consolidated operating revenue of $474.7 million represented a 31.1% increase over 2004. The company posted net earnings applicable to common shares of $88.9 million, 6.6% higher than the previous record of $83.4 million set in 2004.
Cash flow from operating activities came in at $203.9 million for the year compared with $185.3 million for the same period of 2004.
2005 highlights, according to the company, were:
* The launch of Anik F1R, its newest communications satellite, in September. It’s providing capacity for Canadian direct-to-home satellite television and a range of other services. Many of Telesat’s major customers, including Star Choice, CTV, CHUM Television and CBC, now use Anik F1R. That bird allowed Telesat to refocus the Anik F1 satellite solely on South American services.
* During 2005, Telesat completed the implementation of a procurement, installation and maintenance contract for a very large interactive distance learning (IDL) network. The initiative was a significant contributor to revenue throughout the year.
* In May, Telesat launched a two-way, high-speed internet service, making it available to consumers through multiple distributors across Canada. The service was one of the world’s first large-scale commercial rollouts of Ka-band technology, which offers cost-effective, high-speed Internet connectivity across the continent. Resellers include Barrett Xplore Inc.; Infosat Communications Inc.; Télébec, Limited Partnership; NorthernTel, Limited Partnership; and Northwestel Cable Inc.
* In January 2005, Telesat acquired 100% of The SpaceConnection Inc., a California-based reseller of full-time channel and occasional-use satellite capacity. Its clients include major television networks and cable programmers (i.e., ABC, CBS, FOX, NBC, PBS, CNN).
