Two new satellites along with a reduced cost of borrowing pushed revenue and profits up at Ottawa-based Telesat Holdings during its fiscal year despite a decline during the fourth quarter.
By Jacob Serebrin
“We had a busy last year and I’m pleased with our results,” said Dan Goldberg, Telesat’s president and CEO while speaking to investors Monday morning on a conference call to discuss the company’s financial results.
The communications company, which had its fiscal year end on Dec. 31, had revenue of $897 million during the year. That’s up six per cent from $846 million last year.
Mr. Goldberg said that growth was driven by two new satellites, which launched in April 2012 and May 2013.
That revenue, along with lower expenses increased the company’s profits from $24 million in 2012 to $68 million in 2013.
In particular, Mr. Goldberg said, the company reduced the amount it spends on financing.
For the three-month period that ended Dec. 31, Telesat reported revenue of $224 million, a decline of two per cent from the $228 million it reported during the same period last year.
Mr. Goldberg said that was due to reduced equipment sales during that period.
The company had net income of $48 million for the three-month period that ended Dec. 31, down from $55 million the year before.
Telesat currently has one satellite under construction, which Mr. Goldberg said would have “larger capacity and better geographic coverage.”
The company also plans to “enter into an agreement” to build another new satellite, Mr. Goldberg said, “before the end of next year.”
The company said it has approximately $4.9 billion in order backlog and its North American satellite fleet is at 90 per cent of capacity. Telesat’s North American contracts account for 81 per cent of the company’s revenue.