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.
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