Intelsat Government Segment Sees 13% Growth in Q3
Intelsat’s Third Quarter (Q3) financial results showed revenue at similar levels to the same time period in 2019, despite the pandemic. For the three months that ended September 30, Intelsat on Nov. 6 reported total revenue of $489.4 million, down 3% compared to the same time period in 2019.
Net loss attributable to Intelsat was $15.9 million, compared to a net loss of $148.3 million for the same period in 2019. Third quarter Adjusted EBITDA was $332.9 million, or 68% of revenue. At September 30, 2020, Intelsat’s contracted backlog was $6.2 billion, as compared to $6.4 billion at June 30, 2020.
Intelsat’s Government customer segment was the only segment that saw revenue growth in Q3, with $108 million in revenue, up 13% from the same time period in 2019. Government segment made up 22% of Intelsat’s revenue, slightly up from 19% in Q3 2019.
Intelsat’s Media business makes up the largest portion of the company’s revenue, but that portion is slightly shrinking. In Q3, Media made up 42% of revenue, slightly down from the 44% it made up in the same time period last year. Media revenue was $204 million in Q3, a decrease of 9% from Q3 2019.
Network Services follows the Media business in terms of the portion of the company’s revenue at 35%. Network Services revenue of $170 million was down 6% from Q3 2019.
Intelsat CEO Stephen Spengler gave a statement on the company’s segments for the quarter: “Financial results were positively impacted by our government business, which generated meaningful top-line growth when compared to the same period last year as a result of new transponder and FlexGround managed services. The reported decline in the media business reflects the macro trends that have continued to impact our results over the past few quarters. Our network services business remained resilient despite the impacts of COVID-19 on the mobility segments that we serve, with new business booked for enterprise network and maritime mobility solutions.”
Intelsat is undergoing Chapter 11 restructuring and therefore did not hold an investor call. Intelsat also reported $36.4 million worth of reorganization costs for the quarter, primarily for professional fees.