Intelsat Ltd.‘s revenues grew 10 percent to $293.6 million in the third quarter 2005, though the satellite operator posted a net loss of $54.5 million, Intelsat reported Nov. 10. In the same period in 2004, the company lost $17.1 million on revenues of $266.2 million.
Lease services revenue improved $15.3 million to $189.8 million in the third quarter 2005, which ended Sept. 30. Managed solutions revenue grew $6.6 million to $29.8 million, while mobile satellite services revenues, created by the acquisition of the Comsat General business in October 2004, were $15.7 million. The only revenue decline was in channel services, which fell $11.3 million to $54 million.
The increase in the net loss was attributed primarily to higher operating expenses and interest expense. Operating expenses grew from $201.6 million in the third quarter 2004 to $242.6 million in the most recent quarter due mainly to depreciation and amortization expense.
Separately, Panamsat Corp., which Intelsat intends to acquire to create the world’s largest Fixed Satellite Services (FSS) company, posted a profit of $54.2 million in the third quarter 2005 on revenues of $209.1 million. In the same period in 2004, Panamsat lost $76.7 million on revenues of $159.2 million. The third quarter 2005 includes a gain of $18.3 million on an interest rate swap agreement, while the third quarter 2004 loss was attributed mainly to $154.5 million of costs related to recapitalization.
FSS revenues for the third quarter of 2005 increased $3.9 million to $195.8 million due to higher video services revenues and higher government services revenues. FSS operating income was $194.6 million in the most recent quarter, compared to a loss of $88.9 million in the third quarter 2004.
Government Services segment revenues were $19.7 million in the third quarter 2005, down from $20.5 million in the third quarter 2004. Panamsat attributed the decline to a decrease in equipment sales and revenues from the lease of third-party satellite capacity. Operating income grew $1.7 million to $4.4 million due to a shift to higher margin products and services.
