Ottawa-based Telesat is the leading distributor of high definition television channels among global fixed satellite services operators.
Based on a report of capacity it provides to direct to home platform operators, Telesat says it delivers nearly 220 HD channels - more than any other global fixed satellite services operator based on an evaluation of publicly available information.
"Telesat has a growing lineup of HD channels on our Anik and Nimiq satellites that serve North America, and also on our Telstar satellites that serve international markets," Dan Goldberg, President and CEO of Telesat, said in a release. "Demand for HD programming continues to accelerate and it is gratifying to see that our relationships with companies like Bell TV, Shaw Direct, and EchoStar, as well as leading broadcasters like HBO Asia and the Canadian Broadcasting Corporation, have made Telesat a leader in HD channel delivery. We will be starting construction of a new satellite, Nimiq 6, for Bell TV in early 2010 to help meet this demand and anticipate additional capacity being required as Telesat's customers continue to expand their HD channel distribution."
Goldberg, Telesat has just announced its latest financial reports, as well, of which Goldberg said in a release, “I’m very pleased with Telesat’s strong financial and operating performance in the third quarter and first nine months of this year. We continue to achieve meaningful growth in revenue, Adjusted EBITDA and improvements to our Adjusted EBITDA margin compared to the same periods last year. With the recent entry into service of Nimiq 5, Telstar 14R under construction, and a recently announced new satellite, Nimiq 6, planned for Bell TV, Telesat remains well positioned for the balance of this year and beyond.”
Telesat Holdings announced its unaudited financial results for the three and nine month periods ended September 30, 2009.
For the three month period ended September 30, 2009, Telesat reported consolidated revenues of $187 million (all figures Canadian), an increase of approximately 9% ($15 million) compared to the same period in 2008. The increased revenue was primarily the result of the commencement of service on Nimiq 4 and Telstar 11N as well as the impact of the stronger U.S. dollar on the conversion of our U.S. dollar denominated revenues into Canadian dollars, partially offset by the sale of Telesat’s interest in Telstar 10. Adjusted EBITDA1 for the third quarter was $129 million, an increase of $19 million (18%) compared to the same quarter last year. Adjusted EBITDA margin was 69% for the quarter, compared to 64% for the same period in 2008. Telesat reported net income for the three months ended September 30, 2009 of $203 million. The gain on the sale of Telesat’s interest in Telstar 10 was $35 million. The impact on net income of a non-cash foreign exchange gain related to Telesat’s U.S. dollar denominated debt, partially offset by non-cash losses on financial instruments, was $178 million.
For the nine month period ended September 30, 2009, consolidated revenues were $592 million. Adjusted EBITDA for the first nine months of 2009 was $416 million and the Adjusted EBITDA margin was 70%. Net income was $351 million. Revenues, Adjusted EBITDA, and net income increased by $88 million, $103 million, and $502 million respectively compared to the same period in 2008.
Business Highlights
o At September 30, 2009:
o Telesat had contracted backlog for future services of approximately $4.8 billion.
o Fleet utilization was 84% for Telesat’s North American fleet, and 72% for Telesat’s international fleet. In the third quarter, Telesat sold its interest in Telstar 10, which reduced utilization in the international fleet.
o On September 18, 2009, Telesat announced the successful launch of its Nimiq 5 satellite. Nimiq 5 entered commercial service at the 72.7 degrees West orbital location on October 10, 2009. Telesat also announced that EchoStar Corporation, which had previously contracted for half the capacity of Nimiq 5, has committed to use all of the Nimiq 5 capacity for the 15-year manufacturer’s design life of the satellite.
o On September 17, 2009, Telesat announced that Bell TV, the leading provider of direct-to-home services in Canada, has agreed to utilize a new Telesat direct broadcast satellite, Nimiq 6, which is planned to commence construction in the first quarter of 2010. Telesat is now in the process of procuring Nimiq 6 and expects to reflect the anticipated revenues from this new satellite in its contractual backlog once the agreement with the satellite manufacturer is completed.
o In July 2009, Telesat announced its decision to procure the Telstar 14R/Estrela do Sul 2 replacement satellite which is expected to be operational in the 63 degrees West orbital location in the second half of 2011.
o On July 9, 2009, Telesat sold its interest in the Telstar 10 satellite and transferred certain related customer contracts to the satellite’s owner in exchange for a total price of approximately US$69 million. Previously reported discussions regarding the potential sale of Telesat’s interests in another one of its international satellites and related assets have terminated.
o As of September 30, 2009, our estimate of the expected end-of-commercial-service life for our Anik F1 satellite was 2016, as compared to our previous estimate, which was 2013.
Telesat will post its unaudited Quarterly Report for the three and nine month periods ended September 30, 2009 on its website at www.telesat.com in the “Investor Relations” section.
Headquartered in Ottawa, ON, with offices and facilities around the world, Telesat is the fourth largest fixed satellite services operator. Telesat has a global state-of-the-art fleet of 12 satellites, with one under construction and another planned to start construction early 2010, and manages the operations of 13 additional satellites for third parties. Telesat is privately held. Its principal shareholders are Canada's Public Sector Pension Investment Board and Loral Space & Communications Inc.