Telesat Reports consolidated 1st Quarter Revenue of CDN$ 242 million, an increase of 11%
Ottawa, Canada, May 1, 2014--For the quarter ended March 31, 2014, satellite operator Telesat reported consolidated revenue of CDN$ 242 million, an increase of 11% (CDN$ 23 million) compared to the same period in 2013.
During the quarter, the U.S. dollar was 9% stronger than it was during the first quarter of 2013 and, as a result, there was a positive impact on the conversion of U.S. dollar denominated revenue and a negative impact on the conversion of U.S. dollar denominated expenses. Accordingly, revenue increased by 7% ($16 million) compared to the same period in 2013 when adjusted for foreign exchange rate changes. Revenue growth was principally the result of revenue earned on the Anik G1 satellite, which entered into commercial service in May 2013, and the provision of short-term satellite services to another satellite service provider. The growth was partially offset by lower broadcast services revenue earned on Telesat’s Nimiq 2 satellite and lower revenue from equipment sales.
Operating expenses of CDN$ 47 million were 6% (CDN$ 3 million) lower than the same period in 2013 or 9% ($5 million) lower when taking into account changes in foreign exchange rates. This reduction was primarily due to lower cost of equipment sales partially offset by an increase in share-based compensation expense as a result of stock options granted during the second quarter of 2013.
Adjusted EBITDA was CDN$ 198 million, an increase of 16% ($28 million) compared to the same period in 2013 and an increase of 13% ($22 million) when adjusted for foreign exchange rate changes. The Adjusted EBITDA margin was 82% for the first quarter of 2014 compared to 78% for the same period in 2013.
Telesat’s net loss for the quarter was CDN$ 28 million compared to a net loss of CDN$ 97 million for the quarter ended March 31, 2013. Results were positively impacted by improved operating income and lower interest expense in 2014, partially offset by a non-cash loss on foreign exchange arising from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars and higher tax expense. The favorable variation was also due to the recognition, in the first quarter of 2013, of a loss on changes in fair value of financial instruments and a loss on financing related to the irrevocable notice to redeem Telesat’s 12.5% Senior Subordinated Notes, according to a company statement.
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