OTTAWA – BCE-owned satellite company Telesat Canada set new quarterly records for both revenue and earnings, the company said today.
Telesat’s second quarter operating revenues of $137.3 million represented a 62% increase over the same period of 2004. The company posted net earnings applicable to common shares of $26.3 million, 35% higher than Q2 ’04.
For the first six months of 2005, operating revenues totaled $245 million (2004: $168.9 million) and net earnings applicable to common shares were $45.8 million (2004: $38.6 million).
Broadcast revenues (earned from transmitting TV signals) were $51.7 million in the quarter and $102.8 million for the full six months, an increase of 4.7% and 5.7%, respectively. Broadcast sectional operating income was $33.4 million in Q2 and $66.2 million in the half, increases of 36.3% and 42.6%.
Cash flows from operating activities were $79.6 million for the first six months compared with $88.2 million for the same period of 2004. The decrease was due largely to a one-time payment of income taxes in March 2005, and to a significant increase in accounts receivable associated with the rollout of a large North American interactive distance learning network, said Telesat’s release.
Other highlights for the second quarter included:
* Telesat takes control of XM 3 satellite: Telesat assumed on-station control of XM Satellite Radio’s recently launched satellite, which the satellite operator will manage along with the XM 1 and 2 satellites.
* Interactive distance learning network rolls out on schedule: Telesat completed the installation of the U.S. and Mexican portions of the network, meeting the contractual delivery date. The company expects to complete the Canadian and European components of the network by the end of the fourth quarter of 2005.
* Satellite broadband service launched: In May, Telesat launched its new two-way high-speed internet service, making it available to consumers through multiple distributors from coast to coast. The new service delivers always-on, always-ready high-speed Internet connectivity — anywhere and anytime.
* Anik F1R launch planning: Telesat is working with the satellite manufacturer EADS Astrium to ready the new Anik F1R satellite for a launch late this summer. Anik F1R will provide valuable new capacity for Canadian direct-to-home satellite television services, and will feature an important satellite-based GPS navigation system that will make air traffic control safer, more reliable and more accurate than ever before, says the company.
