Intelsat keeps FY guidance despite lower revenues, profit

Thursday 26 October 2017 | 15:32 CET | News

Intelsat said revenues for the third quarter slipped to USD 538.8 million from 542.7 million the year before, with the net result going to a loss of USD 30.4 million from a gain the year before of 195.6 million. The figure benefited last year from a net gain of USD 219.6 million for the extinguishment of debt. The adjusted EBITDA meanwhile rose to USD 420.5 million from 404.9 million. CEO Stephen Spengler said the results reflect the ongoing transition of the company, as Intelsat’s network services business continues to move toward a high-throughput satellite model of greater volume and lower price applications, such as mobility. The company’s media and government businesses are generally performing according to plan, he added. 

By service type, revenues slipped 5 percent to USD 211.5 million at Network Services and fell 13 percent to USD 84.6 million at government. At Media, they increased 9 percent to USD 236.7 million. At the end of September, Intelsat´s backlog was worth USD 7,9 billion, from 8,2 billion at the end of June. 

For the full year, the company now expects to report at the bottom of its previously disclosed revenue range of USD 2.150-2.180 billion. It has however kept its expectations for adjusted EBITDA at USD 1.640-1.670 billion and reaffirmed capex guidance targets of USD 500-550 million for 2017, USD 400-475 million for 2018 and USD 400-500 million for 2019. 

Intelsat 35e, the fourth of the company’s Intelsat Epic next generation high-throughput satellites, completed in-orbit testing and entered service on 15 August. Intelsat 37e was successfully launched on 29 September. Set to replace Intelsat 901 in the Atlantic Ocean region, the satellite is expected to enter into service in the first quarter of next year following the completion of in-orbit testing.

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