OTTAWA – Telesat Canada last week reported third quarter operating revenues of $112.2 million, a 23.2% increase from $91.1 million in the same period of 2004. The company posted net earnings applicable to common shares of $25.3 million, 7.7% higher than the $23.5 million in the third quarter of 2004.
For the first nine months of 2005, operating revenues totaled $357.2 million and net earnings applicable to common shares were $71.1 million (2004: $62.1 million). Cash flows from operating activities were $154.5 million for the first nine months compared with $138.5 million for the same period of 2004. The increase was due to higher cash earnings.
Highlights for the third quarter included:
* The launch of a new satellite: On September 9th, Telesat successfully launched its Anik F1R satellite from the Baikonur Cosmodrome in the Republic of Kazakhstan. The subsequent in-orbit testing of the satellite was completed during September. Telesat’s major customers, including CTV, CHUM Television and CBC, will use Anik F1R to deliver high-quality, reliable broadcasting services from coast to coast. The satellite will also play a key role in Star Choice’s national direct-to-home satellite television service.
* Anik F1 traffic was transferred: Transfer of traffic on the Anik F1 satellite to Anik F1R commenced on October 1st, signaling the start of commercial operations on the new satellite. With the transfer of North American traffic to Anik F1R, the Anik F1 satellite will be used solely for South American services. The largest satellite solutions company in Latin America, Star One S.A., has signed a reservation agreement with Telesat for six C-band transponders for a 22-month term.
* Completed agreements with Ka-band service providers. Telesat has now completed agreements with all of its Ka-band service providers: Barrett Xplore Inc.; Infosat Communications Inc.; Télébec, Limited Partnership; NorthernTel, Limited Partnership; and Northwestel Cable Inc. This new broadband internet access service is being offered on Telesat’s Anik F2 satellite. All providers now have a supply of terminals and the service is rolling out across the country.
* Telesat reached an agreement on the use of the Anik E2 satellite by the government of Argentina in an Argentinean orbital slot. The satellite is being relocated to the Argentinean slot for their use.
* The company was awarded a contract from XM Satellite Radio, Inc. for station-keeping control of the XM 4 satellite to be launched in 2006.
* During the quarter, Telesat signed an agreement with Canadian Satellite Radio Holdings, Inc. (XM Canada) to install 12 high power and 10 standard power terrestrial repeaters for their network to support the distribution of XM Satellite Radio in Canada. Canadian Satellite Radio is expected to introduce their service later this year.
Telesat is a division of Bell Canada Enterprises.
