Company is currently looking for more financing for Telesat Lightspeed
OTTAWA – Telesat announced its second quarter 2022 financial results today, reporting consolidated revenue of $187 million, representing a decrease of 1% ($1 million) compared to the same quarter of 2021.
“When adjusted for changes in foreign exchange rates, revenue declined 3% ($6 million) compared to 2021,” a press release says.
The decrease is attributed primarily to “a reduction on renewal of a long-term agreement with a North American direct-to-home customer, partially offset by an early termination payment received from a customer in Latin America and an increase in services provided to customers in the mobility market as it continues to recover from the impact of COVID-19.”
Telesat further reported adjusted EBITDA for Q2 2022 was $146 million, a decrease of 1% ($2 million). When adjusted for foreign exchange rates, adjusted EBITDA decreased by 4% ($5 million).
“I am very pleased with our financial performance for the second quarter and first half of the year, as it positions us to exceed the revenue and Adjusted EBITDA guidance we gave at the outset of the year,” said Telesat president and CEO Dan Goldberg, in the press release.
“On Telesat Lightspeed, our revolutionary planned Low Earth Orbit satellite constellation, we worked closely with our prospective suppliers over the last quarter to refine key elements of the program. We remain highly confident in the promise of Telesat Lightspeed and expect to have greater clarity on our financing sources for the program toward the end of this year.”
Later, on a conference call with investors, Goldberg said the company is currently looking for more funding for Lightspeed.
“We also believe that we’re going to need to secure some additional financing above and beyond the ECA borrowings as inflation and the delay in the schedule for Telesat Lightspeed has led to an increase in the cost of the program. To that end, we’re in discussions with potential financing sources at this time,” he explained.
“Although we’ve been disappointed with the supply chain challenges and inflationary pressures that we’ve encountered, we remain extremely bullish about the opportunity Telesat Lightspeed gives us to grow our business.”
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