Telesat's loss stands in contrast to a $187 million profit for the same period in 2009, which the firm stated was mainly due to a weaker United States dollar as well as a "gain on financial interests", which caused a non-cash expense of $104 million compared with $194 million last year.
The results, released Thursday, also showed Telesat had consolidated revenues of $205 million. This was a two per cent increase unless taking foreign exchange value into account, at which point it is an eight per cent increase.
"I am very pleased with our performance in the second quarter and first six months of this year," stated Mr. Goldberg. "Adjusting for foreign exchange movements, we experienced meaningful growth in revenue."
Telesat said the increase was mostly due to more revenues from its Nimiq 5 and Telstar 11N satellites, although Telesat also sold off its stake in Telstar 10 earlier this year and had decreased revenues from that stream.
The firm also reduced its operating and cost of equipment sales expenses by 22 per cent (14 per cent when taking into account foreign exchange), leaving it at $49 million.
Income before interest and taxes, and depreciation and amortization, was $158 million, an increase of 11 per cent or $15 million over Q2 2009.
Telesat's backlog for future service is $5.8 million, with its fleet use at 87 per cent in North America and 79 per cent for international.
The firm highlighted its procurement of Anik G1 as a key decision for this quarter. The Shaw Direct transmitter will be launched in the second half of 2012 to provide direct-to-home satellite television for Canada as well as the capability to handle government services communications.
Telesat also stated its support of Canadian government amendments to foreign ownership rules proposed in July, which would exempt satellite operators like Telesat from certain restrictions.
"Telesat believes the removal of these restrictions will give it access to additional sources of capital and, more generally, greater strategic flexibility to enhance its competitive position," the firm stated.
.jpg)
