Still, chief executive Dan Goldberg stated the Ottawa satellite services company had posted a "very good year", while saying little about the possibility of an initial public offering – something Telesat's board of directors began exploring in the third quarter of 2010.
"Adjusting for foreign exchange movements, we experienced strong growth in revenue, a substantial reduction in expenses, significant growth in adjusted (earnings) and continued expansion of our adjusted (earnings) margin," he stated.
The company has been emphasizing foreign exchange rates in its releases as fodder for changing the company's direction, either in an initial public offering or possibly by selling the company to a United States buyer.
In November, Bloomberg cited unnamed sources saying Telesat hired JPMorgan Chase & Co., Morgan Stanley and Credit Suisse Group AG to start sales talks discuss financial arrangements with interested parties.
Telesat's net income was $228 million in 2010, with a foreign exchange gain of $164 million, compared with income of $431 million in 2009 on a foreign exchange gain of $335 million.
The company also reported an $11 million loss on financial instruments that partially offset the lesser foreign exchange gain, compared with a $117 million loss in 2009.
Consolidated revenues were $821 million, up four per cent or $34 million from 2009. When foreign exchange rates were taken into account, the increase was more like eight per cent, Telesat stated.
Revenues bumped up due to more business on Nimiq 5 and Telstar 11N and were partially offset by Telesat's decision to terminate its lease in the Telstar 10 satellite in July 2009.
"In sum, 2010 was a very good year for Telesat and, in light of the growing demand in the key markets we serve, our significant investments in expansion satellite capacity, and our industry-leading contractual backlog, we believe we are well positioned to continue to grow in the years ahead," Mr. Goldberg stated.
Telesat is dually owned by New York-based Loral Space and Communications, which has a majority economic interest, and a Canadian-owned holding company holding a majority voting interest.
