Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2022

About this update from Telesat Corporation

[{"type":"text","content":"OTTAWA, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Telesat (NASDAQ and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three and nine-month periods ended September 30, 2022. All amounts are in Canadian dollars and reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted. “We remain on track to outperform the financial guidance we gave at the outset of this year and are pleased with our performance year to date,” commented Dan Goldberg, Telesat’s President and CEO. “Our revenue and Adjusted EBITDA1 are, as anticipated, lower relative to the prior period as a result principally of the reduction in a North American direct-to-home television customer contract renewal earlier in the year. Telesat’s business continued to generate strong cash flow, ending the quarter with $1.7 billion in cash. We also delivered industry-leading Adjusted EBITDA margins1, maintained high capacity utilization and have a substantial contractual backlog of $1.9 billion.” Goldberg added: “In the quarter we progressed discussions with our suppliers and financing sources on Telesat Lightspeed, our revolutionary planned Low Earth Orbit satellite constellation. We continue to believe that we will have greater clarity on the financing of the program around year end and that Telesat Lightspeed represents a transformative growth opportunity for the company and a highly compelling value proposition for the communications enterprise user community.” For the quarter ended September 30, 2022, Telesat reported consolidated revenue of $180 million, a decrease of 6% ($12 million) compared to the same period in 2021. When adjusted for changes in foreign exchange rates, revenue declined 8% ($16 million) compared to 2021. The revenue decrease was primarily due to a reduction on renewal of a long-term agreement with a North American DTH customer and, to a lesser extent, revenue from short-term services provided to another satellite operator in 2021 that did not recur in 2022. This was partially offset by higher revenue from mobility customers and the NASA Communications Services Project (CSP) program. Operating expenses for the third quarter were $56 million, a decrease of 7% ($4 million) from the same period in 2021. When adjusted for changes in foreign exchange rates, oper...

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