Intelsat reports $23.8 million loss during second quarter
Luxembourg-based integrated satellite communications services Intelsat SA. announced a second-quarter loss of $23.8 million, after reporting a $131.4 million gain in the same period a year earlier.
Intelsat which is the operator of the world's first globalised network has reported a loss of 20 cents on a per-share basis.
The company's revenue in the second quarter of 2017 was $533 million, which marks a two per cent decline, as compared to the revenue of $542 million recorded in the second quarter of 2016.
The net loss attributable to Intelsat S.A. was $24 million for the three months ending on June 30, 2017, as compared to its net income of $116 million in the previous year, which included a gain on an early extinguishment of debt.
Intelsat’s Chief Executive Officer, Stephen Spengler commented that the second quarter results are "in line with our June guidance update" and outlined that "the introduction of new Intelsat EpicNG enabled services "expands our market opportunities."
Its second-quarter EBITDA amounted to $407.3 million as opposed to $403.6 million for the same period in 2016.
During the three months to June 30, the company's adjusted EBITDA increased 2 percent to $417.9 million, or 78 percent of revenue, compared to $410.7 million, or 76 percent of revenue, for the same period a year earlier.
Intelsat's contracted backlog at the end of June was $8.2 billion, representing expected future revenue under existing contracts with customers, as compared to $8.5 billion on March 31 this year.
Intelsat provides critical communications infrastructure to customers in the network services, media and government sectors and forecasts their full-year 2017 revenue to be in a range of $2.150 billion to $2.180 billion.
Intelsat's network services revenue was $214.9 million (or 40 percent of Intelsat’s total revenue) for the three months to June 30, 2017; a decrease of six percent compared to the second quarter of 2016.
The company's media revenue was $222.2 million (or 42 percent of Intelsat’s total revenue) for the three months ended on June 30, 2017; an increase of five percent compared to the three months ended on June 30, 2016.
Government revenue was $86.0 million (or 16 percent of Intelsat’s total revenue) for the three months to June 30, 2017, showing a decline of eight per cent compared to the same period in 2016.
Earlier in July, Intelsat announced the successful launch of its Intelsat 35e satellite that will support wireless infrastructure, mobility, broadband, government and media customers in the Americas, the Caribbean, Europe and Africa.
Spengler explained that “the Intelsat 35e satellite mission is successfully progressing, with in-orbit testing now underway. The third quarter launch of Intelsat 37e, the fifth satellite in the Intelsat EpicNG fleet, is our last launch planned for 2017. By the end of this year, we expect to achieve in-orbit resilience across a substantial portion of the Intelsat EpicNG fleet, creating an infrastructure that will unlock new applications for satellite-based solutions, connecting people and devices everywhere.”
Intelsat was founded on July 8, 2011 and employs over 1100 people. According to Nasdaq at 15:23 on July 28 the company's shares traded at $3.24.
(Roxana Mironescu, firstname.lastname@example.org, +325 49 93 748)