Telesat Takes a Net Loss on Debt Refinancing Costs

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[Satellite TODAY 08-03-12] Canadian FSS operator Telesat reported consolidated revenues of $202 million during its 2012 second quarter, which were relatively flat compared to the same period last year even when adjusting for foreign exchange rates, according to the company’s latest financial results issued Aug. 2.

The operator, however, reported a net loss of $243 million due to the refinancing of its senior debt, a $162 million non-cash loss related to a pre-payment option and $54 million in expenses related to the write-off of deferred financing costs. Telesat reported a net income of $22 million during the same period in 2011.

Telesat’s EBITDA for the second quarter was $156 million – a 1 percent increase compared to the same period last year – but its adjusted EBITDA was adversely affected by a previously disclosed contractual rate reduction on one of its DTH satellites. The loss was largely offset by growth from Telesat’s North American and international satellite fleet.

“Notwithstanding the significant contracted reduction in revenue from one of our DTH satellites, revenue and Adjusted EBITDA were in line with 2011 results,” Telesat President and CEO Dan Goldberg said in a statement. “We successfully launched and brought our Nimiq 6 satellite into service toward the end of the quarter and, as a result, expect meaningful growth in both revenue and Adjusted EBITDA in the second half of this year relative to the first half.”