Telesat reports Q3 2023 results

Telesat Corp. announced its financial performance for the three month period ended Sept. 30, posting a three per cent decrease in revenue compared to the third quarter of 2022 and a net loss of $3 million versus $229 million compared to Q3 2022. “I am pleased with our financial and operating performance for the third quarter and first nine months of the year,” Dan Goldberg, Telesat’s president and CEO stated in the company’s press release. “We remain on track to meet our guidance and, as a result of our continued disciplined execution, delivered industry- leading Adjusted EBITDA margins, high capacity utilization, a substantial contractual backlog of $1.5 billion, and a cash balance of $1.8 billion. In addition, in the third quarter and subsequent period we strengthened our financial position by repurchasing debt with a cumulative face value of US$195 million, received the remaining C-band proceeds from our U.S. spectrum clearing efforts, and successfully completed in-orbit testing of our LEO 3 demonstration satellite.” The company reported consolidated revenues of $175 million, which is $5 million less than the year prior. The decrease was primarily due to lower revenue from its South American customers. The positive variation in its net losses this quarter compared to Q3 2022, was due to “a positive variation in foreign exchange gain (loss) on the conversion of U.S. dollar debt into Canadian dollars and a gain on its repurchase of debt,” the company stated. Telesat highlighted several business milestones in its operations during this period. In July, the company successfully launched its LEO 3 demonstration satellite, which underwent in-orbit testing. This satellite, equipped with Ka- and V-band payloads, will play a crucial role in maintaining continuity for customer and ecosystem vendor testing efforts following the retirement of Telesat's Phase 1 LEO satellite. Telesat secured a key agreement with space technology company MDA Ltd. in August. This deal involves MDA Ltd. building advanced satellites for the Telesat Lightspeed LEO program. Telesat Lightspeed is now fully funded for global service delivery, encompassing the company's equity contribution, vendor financing, and funding commitments from Canadian federal and provincial government partners, subject to finalization through definitive agreements. Telesat inked a launch agreement with Space Exploration Technologies Corp. in September, for 14 launches using SpaceX's Falcon 9. These launches will transport up to 18 Lightspeed satellites per mission from SpaceX's facilities in California and Florida. The company successfully cleared the C-band spectrum, with the U.S. Federal Communications Commission confirming Telesat's eligibility for a substantial accelerated relocation payment of US$259.6 million. This payment was recognized in financial records for the period, contributing to Telesat's overall financial stability.

Telesat reports Q3 2023 results

Brief | November 6, 2023

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Telesat reports Q3 2023 results

Brief | November 6, 2023

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