Telesat
Achieves
Strong
Growth
in
the
Second
Quarter
and
First
Six
Months
of
2010
August
5,
2010
Telesat
Holdings
Inc.
announced
its
unaudited
financial
results
for
the
three
and
six
month
periods
ended
June
30,
2010.
Unless
otherwise
stated
herein,
all
amounts
are
in
Canadian
dollars.
For
the
three
month
period
ended
June
30,
2010,
Telesat
reported
consolidated
revenues
of
$205
million,
an
increase
of
approximately
2%
($4
million)
compared
to
the
same
period
in
2009.
When
adjusted
for
changes
in
foreign
exchange
rates
over
the
period,
revenue
increased
by
8%
compared
to
the
same
quarter
in
2009.
The
year
over
year
increase
was
primarily
the
result
of
increased
revenues
from
Nimiq
5
and
Telstar
11N,
partially
offset
by
the
sale
of
Telesat’s
interest
in
Telstar
10.
Operating
and
cost
of
equipment
sales
expenses
of
$49
million
were
22%
($14
million)
less
than
the
same
period
in
2009,
but
14%
less
when
taking
into
account
changes
in
foreign
exchange
rates.
Adjusted
EBITDA1
for
the
second
quarter
of
2010
was
$158
million,
an
increase
of
11%
($15
million)
compared
to
the
second
quarter
2009
and
an
increase
of
17%
when
adjusted
for
foreign
exchange
rate
changes.
The
Adjusted
EBITDA
margin1
for
the
second
quarter
was
77%,
compared
to
71%
for
2009.
During
the
second
quarter
of
2010,
the
foreign
exchange
loss
related
to
the
conversion
of
the
U.S.
dollar
denominated
debt
combined
with
the
gain
on
financial
instruments
resulted
in a
non-cash
expense
of
$104
million,
compared
to a
non-cash
gain
of
$194
million
for
the
same
period
in
2009.
As a
result
of
this
non-cash
expense,
Telesat
reported
a
net
loss
of
$72
million
in
the
second
quarter
compared
to a
profit
of
$187
million
for
the
same
period
in
2009.
For
the
six
month
period
ended
June
30,
2010,
consolidated
revenues
were
$405
million,
virtually
unchanged
from
2009.
When
adjusted
for
foreign
exchange
rate
changes
over
the
period,
revenue
increased
by
7%
compared
to
the
first
half
of
2009.
Adjusted
EBITDA
was
$306
million,
an
increase
of
7%
($20
million)
over
the
first
half
of
2009
and
an
increase
of
14%
when
adjusted
for
foreign
exchange
rate
changes.
The
Adjusted
EBITDA
margin
was
76%
and
net
income
was
$8
million
for
the
first
six
months
of
2010,
compared
to
71%
and
$148
million,
respectively,
in
the
prior
period.
“I
am
very
pleased
with
our
performance
in
the
second
quarter
and
first
six
months
of
this
year,”
commented
Dan
Goldberg,
Telesat’s
President
and
CEO.
“Adjusting
for
foreign
exchange
movements,
we
experienced
meaningful
growth
in
revenue,
even
more
significant
growth
in
Adjusted
EBITDA
and
a
pronounced
expansion
in
our
Adjusted
EBITDA
margin
compared
to
the
same
period
last
year.
In
addition
to
the
strong
financial
performance,
we
also
concluded
the
procurement
of
Anik
G1,
a
state-of-the-art
satellite
that
will
augment
our
already
strong
North
American
DTH
business
by
providing
new
capacity
fully
contracted
to
Shaw
Direct
for
the
life
of
the
satellite.
Anik
G1
also
will
replace
and
expand
upon
our
Anik
F1
satellite
for
the
fast
growing
Latin
American
market
and
allow
us
to
develop
further
our
government
services
activities
with
its
innovative
X-band
payload.
In
short,
Telesat
has
had
another
strong
quarter
and
at
this
time
we
anticipate
achieving
record
levels
of
revenue
and
Adjusted
EBITDA
for
the
full
year.”
