Intelsat Reports Reveneues of US$ 655 mil. and Net Loss of US $7.8 mil. in 1Q 2013
Washington, D.C., May 9, 2013 — Intelsat S.A. reported revenues of US$ 655.1 million and a net loss of US$ 7.8 million, or $0.09 per share, during the first quarter of 2013. Intelsat also reported an EBITDA or earnings before net interest, taxes and depreciation and amortization, of US$ 496.8 million, and Adjusted EBITDA1 of US$ 505.8 million, or 77 percent of revenue, for the first quarter. The company said it has contracted backlog amounting to $10.4 billion at the end of the quarter.
Intelsat CEO Dave McGlade said the company’s total revenue grew 2 percent in the first quarter of 2013, as compared to the year-earlier quarter while its on-network revenue grew 4 percent in the period, reflecting solid demand for transponder services and the benefit of refreshed video neighborhood capacity and mobility capacity provided by its 2012 launch campaign.
"In addition, managed services revenue increased, reflecting demand for our global hybrid infrastructure of terrestrial and satellite capacity, particularly for mobility applications for network services customers. New customer and renewal activity remains steady, and our backlog, at $10.4 billion, offers visibility into future revenue trends," he said.
"I am pleased to welcome common and preferred stockholders following our IPO in April 2013. We are using the funds raised in our stock offerings, combined with the interest savings from our recent debt re-financings, to begin a positive cycle of de-leveraging that we believe will enhance the equity value we create for our stakeholders," he added.
Intelsat said its network services business, which provides broadband infrastructure for fixed and wireless telecommunications and enterprise and mobility applications, accounted for 46 percent of Intelsat’s total first quarter 2013 revenue, at US$ 298.3 million. But its performance was flat compared to the first quarter 2012.
During the quarter, Intelsat said growth in transponder and managed services revenue from broadband network services for maritime customers was offset by reduced revenue from channel services. Intelsat attributed this to migration to fiber, and off network services, reflecting customer premises equipment revenue received in the first quarter 2012 but not in 2013.
Intelsat held an Initial Public Offering last April which raised US$ 347 million, which the company say it will use to pay off part of its debt load of US$ 15.9 Billion. Intelsat is now trading in the New York Stock Exchange using the symbol “I”.
The company also reported that the United Nations renewed its contract with Intelsat for transponder services on Intelsat 25, Intelsat 906 and Intelsat 907, and IntelsatOneSM Internet trunking circuits transiting Intelsat’s teleports in Germany and Maryland. These services are used to support United Nations peacekeeping operations around the world.
US-based ITC Global, a satellite network service provider for many of the world’s largest mining, energy, and maritime companies, also signed a multi-year agreement for managed network services leveraging Intelsat’s teleport in Maryland, and capacity on Intelsat 25 in support of a private data network for mining and other applications in remote areas of sub-Saharan Africa.
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