Telesat Reports Results for the Quarter Ended March 31, 2023

About this update from Telesat Corporation

[{"type":"text","content":"OTTAWA, May 11, 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 period ended March 31, 2023. All amounts are in Canadian dollars and reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted. “I am pleased with our first quarter results and the steps we are taking to strengthen our business and execute on our long term plan,” commented Dan Goldberg, Telesat’s President and CEO. “Our financial results in the quarter were consistent with our expectations and we continue to generate strong cash flow, ending the first quarter with $1.7 billion in cash. Through our operational discipline and focus we have been able to deliver industry-leading Adjusted EBITDA margins1 and maintain high capacity utilization and a substantial contractual backlog, closing the quarter with $1.7 billion. We reaffirm at this time all of our previously issued financial guidance for 2023 and note also that, subsequent to quarter end, we took steps to strengthen our financial position by repurchasing a portion of our debt.” Goldberg added: “We continue to progress our discussions with our suppliers and financing sources for Telesat Lightspeed, our revolutionary planned Low Earth Orbit satellite constellation. We strongly believe Telesat Lightspeed represents a transformative growth opportunity for the company and a highly compelling value proposition for enterprise and government customers.” For the quarter ended March 31, 2023, Telesat reported consolidated revenue of $183 million, a decrease of 1% ($2 million) compared to the same period in 2022. When adjusted for changes in foreign exchange rates, revenue declined 5% ($9 million) compared to 2022. The decrease was mainly due to a reduction of revenue from one of Telesat’s North American DTH customers, partially offset by higher equipment sales to Canadian government customers combined with increased services provided to aero and maritime customers. Operating expenses for the quarter were $53 million, a decrease of $11 million from 2022. When adjusted for changes in foreign exchange rates, operating expenses decreased by $12 million compared to 2022. The decrease was primarily due to higher non-cash share-based compensation recognized in the t...

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