OTTAWA — Telesat’s full-year 2019 consolidated revenue grew 1% to $911 million, compared to its 2018 fiscal year. When adjusted for changes in foreign exchange rates, Telesat’s 2019 revenue was unchanged compared to the previous year.
The slight revenue increase was attributable to the company’s Telstar 19 Vantage and Telstar 18 Vantage satellites, which were launched in 2018, as well as revenues earned from short-term services to other satellite operators, Telesat said in the news release.
These increases were offset by lower equipment sales, a reduction of service for an unnamed customer in the broadcast segment, lower revenue due to the completion of the term for prepaid services in a customer agreement which was accounted for as having a significant financing component, and lower revenue from certain unnamed customers in the resource sector, the release says.
The company’s operating expenses for the full year of 2019 were $165 million, a decrease of 11% ($20 million) from 2018. When adjusting for the impact of foreign exchange rate changes, expenses decreased by 12% ($22 million). Adjusted EBITDA was $763 million, an increase of 1% ($11 million) or, when adjusted for foreign exchange rates, an increase of $3 million compared to 2018. Telesat’s Adjusted EBITDA margin for 2019 was 83.7%, compared to 83.3% in 2018.
For the year ended December 31, 2019, Telesat’s net income was $187 million, compared to a net loss of $91 million for 2018. The net income increase was principally the result of non-cash foreign exchange gains in 2019, arising from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars compared to foreign exchange losses in 2018, partially offset by higher non-cash losses on financial instruments and a loss on refinancing in 2019 when compared to 2018, the release says.
In its news release, Telesat highlighted company news related to its membership in the C-Band Alliance, a consortium formed to facilitate the potential repurposing of certain C-band spectrum in the United States for 5G mobile services. On February 7, 2020, the U.S. Federal Communications Commission issued a draft report and order on Expanding Flexible Use of the 3.7 to 4.2 GHz Band. The draft report and order indicated Telesat could receive as much as US$374 million from the repurposing of C-band spectrum in the U.S., subject to certain conditions. The draft order is scheduled to be voted on at the FCC’s February 28 meeting.
