Telesat Reports Results for the Quarter and Twelve Months Ended December 31, 2022

About this update from Telesat Corporation

[{"type":"text","content":"OTTAWA, March 29, 2023 (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- month and one-year periods ended December 31, 2022. All amounts are in Canadian dollars and reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted. “I am pleased to report that we outperformed our 2022 financial guidance, including the increased and updated guidance we provided when we released our second quarter results in August last year,” commented Dan Goldberg, Telesat’s President and CEO. “Telesat continues to generate strong cash flow, ending the year with $1.7 billion in cash, deliver industry-leading Adjusted EBITDA margins1, and maintain high capacity utilization and a substantial contractual backlog, closing the year at $1.8 billion.” Goldberg added: “Last year we progressed our discussions with our suppliers and financing sources for Telesat Lightspeed, our revolutionary planned Low Earth Orbit satellite constellation. Although we had planned to complete our financing arrangements around the end of last year, it has taken longer than anticipated and we now believe that we will have greater clarity on those arrangements in the near term. Telesat Lightspeed represents a transformative growth opportunity for the company and a highly compelling value proposition for enterprise and government customers.” For the year ended December 31, 2022, Telesat reported consolidated revenue of $759 million, stable compared to the same period in 2021. When adjusted for changes in foreign exchange rates, revenue declined 2% ($15 million) compared to 2021. The slight reduction in revenue is primarily due to a reduction on the 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 offset by higher revenue from aero and maritime customers as well as the completion of an equipment sale in 2022 to the U.S. Defense Advanced Research Projects Agency (“DARPA”) combined with higher consulting revenue arising from DARPA and a NASA project. The DARPA and NASA projects both relate to U.S. government LEO programs. Operating expenses for the full year 2022 were $259 mil...

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