Telesat Q3 revenue falls 27% on lower renewal rates
Overview
Telesat Q3 revenue falls 27% yr/yr due to changes in customer agreements
Adjusted EBITDA for Q3 declines 51% yr/yr, margin drops to 46.3%
Net loss for Q3 is C$121 mln, impacted by foreign exchange losses
Outlook
Telesat expects 2025 revenue between C$405 mln and C$425 mln
Company forecasts 2025 adjusted EBITDA of C$170 mln to C$190 mln
LEO operating expenses projected at C$75 mln to C$85 mln for 2025
Capital expenditures for 2025 to range from C$900 mln to C$1.1 bln
Result Drivers
CUSTOMER AGREEMENTS - Revenue decline driven by lower rates on renewal and expiration of agreements with North American direct-to-home television customer and reductions in services for other customers
OPERATING EXPENSES - Increase due to higher legal and professional fees and LEO headcount growth, partially offset by higher capitalized engineering
FOREIGN EXCHANGE AND FINANCIAL INSTRUMENTS - Net loss impacted by foreign exchange loss and changes in fair value of financial instruments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| C$101 mln |
|
Q3 EPS |
| -C$2.38 |
|
Q3 Net Income |
| -C$121 mln |
|
Q3 Adjusted EBITDA Margin |
| 46.30% |
|
Q3 Operating Expenses |
| C$58 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
Press Release: ID:nGNX9dCyd7
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