Telesat reports third quarter results with increases in both revenue and net earnings
Telesat Canada announced today its unaudited financial results for the third quarter ending September 30, 2007. The company, which owns and operates satellites serving the Americas and provides a wide range of consulting services, posted increases in both revenue and profitability.
Telesat’s third quarter operating revenue of $130.4 million represented a 15% increase from $113.5 million in the same period of 2006. The company posted net earnings applicable to common shares of $26.4 million, 33% higher than the $19.8 million in the third quarter of 2006 as a result of higher revenues. Cash flows from operating activities were $74.7 million for the quarter compared to $47.6 million for the same period in 2006, an increase of $27.1 million or 57%. The increase is largely due to higher revenues and to lower cash payments for taxes in 2007.
On October 5, 2007 Loral Space & Communications Inc. and Public Pension Investment Board received the final regulatory approval necessary to complete the acquisition of Telesat from BCE Inc. The transaction is expected to close on October 31, 2007.
About Telesat
Headquartered in Ottawa, Telesat Canada is one of the world’s pioneers in satellite communications and systems management and the leading satellite service provider in Canada. Created in 1969, the company made history three years later with the launch of Anik A1, the world’s first domestic communications satellite in geostationary orbit operated by a commercial company.
Telesat operates a fleet of satellites that provide broadcast distribution and telecommunications services, and is a highly respected consultant and partner in satellite ventures around the world. Telesat has offices throughout Canada, in the United States and in Brazil. On December 18, 2006, Telesat’s parent company, BCE Inc., announced the sale of the satellite operator for $3.25 billion, net of debt, to a new acquisition company formed by Canada’s Public Sector Pension Investment Board (PSP Investments) and Loral Space & Communications Inc. (Loral). As part of the agreement between PSP Investments and Loral, Loral will contribute its fixed satellite services and network services assets to the new acquisition company.
For further information: Ted Ignacy, Telesat, Tel: (613) 748-0123; Dan Tisch or Kyla Thoms (media only), Argyle Communications, (416) 968-7311, ext. 223 or 237, dtisch@argylecommunications.com, kthoms@argylecommunications.com
