OTTAWA – Satellite owner-operator Telesat reported consolidated revenues of $202 million in the second quarter of 2012 ended June 30th, an increase of approximately 1% compared to the same period in 2011.
However, when adjusted for foreign exchange rate changes over the period, revenue decreased by 1% ($1.4 million) compared to the same period in 2011. For the six month period ended June 30, 2012, consolidated revenues were $398 million, a decrease of approximately 1% compared to the same period in 2011. When adjusted for foreign exchange rate changes, revenues decreased by 2% compared to the same period in 2011, reads the press release.
Adjusted EBITDA for the second quarter of 2012 was $156 million, an increase of 1% compared to the second quarter of 2011 and a decrease of 1% when adjusted for foreign exchange rate changes. The adjusted EBITDA margin of 77% for the second quarter remained unchanged compared to the same period in 2011. For the six month period ended June 30, 2012, adjusted EBITDA was $309 million, a decrease of 1% ($3 million) over the same period of 2011 and a decrease of 2% ($6 million) when adjusted for foreign exchange rate changes. The adjusted EBITDA margin for the first half of 2012 remained unchanged at 77% compared to the same period in 2011, says the release.
For the second quarter and first half of 2012, revenue and adjusted EBITDA were adversely affected by a previously disclosed contractual rate reduction on one of Telesat’s Direct-to-Home (DTH) satellites, largely offset by growth from Telesat’s North American and international satellite fleet.
Telesat reported a net loss of $243 million in the second quarter compared to net income of $22 million for the same period in 2011. A significant portion ($216 million) of the second quarter loss was related to the refinancing of Telesat’s 11% senior notes: a $162 million non-cash loss related to a prepayment option and $54 million in expenses relating to the write off of certain deferred financing costs as well as tender and redemption premiums paid to the 11% senior noteholders. The net loss was $144 million for the first six months of 2012 compared to net income of $137 million for the same period in 2011.
“I am pleased with our financial and operating performance in the second quarter,” commented Dan Goldberg, Telesat’s president and CEO, in the release. “Notwithstanding the significant contracted reduction in revenue from one of our direct-to-home satellites, revenue and adjusted EBITDA were in line with 2011 results.
“We successfully launched and brought into service our Nimiq 6 satellite toward the end of the quarter and, as a result, expect meaningful growth in both revenue and Adjusted EBITDA in the second half of this year relative to the first half,” said Goldberg. “Lastly, we made continued progress on the construction of the Anik G1 satellite, which we expect to launch toward the end of this year. In light of the investments we are making in our new satellites and our industry-leading contractual backlog, we remain well positioned to grow going forward.”
