Intelsat’s Revenues, Earnings Dip In Second Quarter

Satellite operator Intelsat reported reduced revenues and earnings for the second quarter compared with the same quarter a year ago.

Telecommunications revenues for Intelsat dipped 1 percent, or $2.2 million, to $244.5 million for the second quarter, compared with the same quarter in 2002. Intelsat’s net income fell 44 percent, or $32.9 million, to $42.6 million for the quarter, compared to the same period in 2002, due principally to higher operating expenses, lower revenues, a $9.8 million hike in interest expenses, and a $4.7 million rise in other expenses.

However, reduced capital expenditures in the face of industry-wide overcapacity helped Intelsat lift its free cash flow from operations for the second quarter to $166.7 million, up dramatically from $20.1 million for the same period in 2002. The increase was due to reduced spending for new satellites, other property and equipment, company officials said.

For more on this story, check out the Aug. 4 issue of SATELLITE NEWS. For info on subscribing to PBI Media’s satellite newsletters, check out our Web site at http://www.telecomweb.com/catalog.