OTTAWA – Telesat today announced financial results for its full year and for the quarter ended Dec. 31, 2021, which shows consolidated revenue declined 8% and 7% respectively.
For the full year 2021, consolidated revenue decreased to $758 million, compared to the previous year. “When adjusted for changes in foreign exchange rates, revenue declined 4% ($32 million) compared to 2020,” a press release explains.
“The revenue decrease was primarily due to a reduction of service for one of Telesat’s North American direct-to-home customers, the reduction or non-renewal of certain services in the enterprise segment, including as a result of the full-year effect of contract restructurings in 2020 for a mobility customer as a result of Covid-19, and lower consulting revenue,” the release says.
“The revenue decline was partially offset by an increase in revenue associated with short-term services provided to another satellite operator in 2021, which had not occurred in 2020, as well as increased services provided to customers in the mobility market as it began to recover from the impact of Covid-19.”
Telesat also reported full year adjusted EBITDA for 2021 decreased 8% to $603 million and net income decreased to $158 million from $246 million in 2020.
“Although the program has been delayed as a result of certain supply chain issues, we remain bullish that Telesat Lightspeed will position Telesat and its customers for strong future growth” – Dan Goldberg, president and CEO of Telesat
For the quarter ended Dec. 31, 2021, Telesat’s consolidated revenue declined 7% to $187 million compared to the same quarter the previous year. “When adjusted for changes in foreign exchange rates, revenue declined 5% ($9 million) compared to 2020,” the release says.
This was mostly “due to lower equipment sales from certain government customers, the reduction or non-renewal of certain services in the enterprise segment, and a reduction of services for one of Telesat’s North American direct-to-home customers.”
Adjusted EBITDA for the quarter decreased 9% to $145 million compared to the same quarter in 2020, and net income was $97 million, a decrease from the $255 million reported for the same quarter in 2020.
Among the highlights listed for the year in the press release is Telesat going public in November and its progress on its Lightspeed constellation.
“I am pleased to report our 2021 fourth quarter and full year results as a dual-listed, public company,” said Dan Goldberg, Telesat’s president and CEO, in the release.
“I am also pleased that we made significant progress last year on our revolutionary Telesat Lightspeed constellation, including announcing $1.44 billion and $400 million of investment in the project by the Government of Canada and the Government of Quebec, respectively; making strong progress on the advanced technologies and systems underpinning the constellation; and concluding an agreement with the Government of Ontario to use Telesat Lightspeed to help bridge the Digital Divide, which, along with our Government of Canada agreement previously announced, contributes to the over $750 million in contractual backlog we had in place for Telesat Lightspeed at the end of 2021,” he said.
“Our focus now is completing the financing of Telesat Lightspeed and commencing the full-scale construction of the program. Although the program has been delayed as a result of certain supply chain issues, we remain bullish that Telesat Lightspeed will position Telesat and its customers for strong future growth.”
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