OTTAWA – Telesat ended fiscal 2017 on high note with gains in both revenues and profits.
For the fourth quarter ended December 31, 2017, Telesat reported revenues of $252 million, an increase of approximately 5% ($12 million) compared to the same period in 2016. After adjusting for the impact of changes in foreign exchange rates, revenue increased by 7% ($18 million) year-over-year, primarily driven by short-term services provided to other satellite operators.
Telesat’s net income for the quarter was $72 million compared to a loss of $21 million for the quarter ended December 31, 2016. The variation was primarily due to lower foreign exchange losses in 2017 compared to 2016, and a loss on refinancing in 2016, the company said Thursday.
Operating expenses of $47 million for the quarter were slightly ($1 million) higher than the same period in 2016. After adjusting for the impact of changes in foreign exchange rates, expenses were $2 million higher.
Adjusted EBITDA for the quarter was $207 million, an increase of 7% ($13 million) compared to the same period in 2016. After adjusting for the impact of changes in foreign exchange rates, Adjusted EBITDA was 9% ($18 million) higher. The Adjusted EBITDA margin was 82.0%, up 81.0% year-over-year.
At December 31, 2017, Telesat said it had contracted backlog for future services of approximately $3.8 billion, and fleet utilization was 95% for its North American fleet and 71% for its international fleet.
“I am pleased with our performance last quarter and over the past year, particularly given the challenging conditions that continue to prevail in many of the markets we serve,” said Telesat president and CEO Dan Goldberg, in the news release. “Our solid results highlight the strength of our business, which is underpinned by our industry leading contractual backlog to revenue ratio, as well our strong operating discipline, which is reflected in part in our favorable Adjusted EBITDA margin and improving capacity utilization.”
