Telesat Revenue Flat in First Quarter 2017 Results

Telesat headquarters. Photo: Telesat.

Telesat Canada announced that its consolidated revenues of CA$235 million ($171 million) for the first quarter remained unchanged from the same period in 2016. During the quarter, the U.S. dollar was approximately 4 percent weaker against the Canadian dollar than it was during the first quarter of 2016, which resulted in an unfavorable impact on the conversation of U.S. dollar denominated revenues, the company stated. Excluding the impact of foreign exchange rate changes, revenue increased by 1 percent.

Net income for the quarter was CA$88 million ($64.7 million), while operating expenses of CA$55 million ($40.1 million) were 18 percent higher than the same period in 2017. According to Telesat, the increase in operating expenses was due to an increase in compensation and employee benefits expense. Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was CA$192 million ($140.1 million), an increase of 1 percent year-over-year.

Telesat reported that its fleet utilization was at 94 percent for its North American fleet and 67 percent for its international fleet, with a contracted backlog for future services of approximately CA$4.1 billion ($2.9 billion).

The company recently appointed a new vice president of its Low Earth Orbit (LEO) division, Erwin Hudson.