Press Releases
Telesat reports first quarter results
After a very successful 2000, BCE-owned satellite operator continues strong performance.
OTTAWA, ON, April 26, 2001 - Telesat Canada, a wholly owned subsidiary of BCE Inc., today released its financial results for the three months ending March 31, 2001. The company reported higher net earnings and cash flow from operating activities due primarily to the sheltering of income taxes under a tax loss monetization plan with BCE.
Consolidated operating revenue for the period was $70.9 million, compared with $71.6 million in the first quarter of last year. Revenue for the first quarter was lower due to one-time Y2K-related revenue in the first quarter of 2000. This variance was partially offset by higher revenue from the Nimiq direct broadcast satellite and higher international consulting and related equipment sales in 2001. Earnings from operations of $16.1 million were $2.2 million lower than in 2000 because of increased depreciation expense relating to the Anik F1 satellite, which entered commercial service on February 19, 2001.
Unaudited consolidated net earnings applicable to common shareholders increased to $16.3 million from $7.0 million in the first quarter of 2000. The major reason for this increase was the sheltering of income taxes under the tax loss monetization plan.
Cash flow from operating activities for the first three months was $15.9 million. This increase of $32.2 million from the comparable figure for 2000 was primarily due to the payment of income taxes during the first quarter of 2000, with a minimal corresponding outlay in 2001. The tax loss monetization plan, which has contributed significantly to earnings over the last three quarters, was unwound on March 30, 2001.
Highlights of the quarter included:
- Telesat's new Anik F1 satellite entered commercial service on February 19, becoming the first Telesat satellite to serve both North and South America.
- Just a few weeks later, Telesat announced three separate contracts with iDirect Inc., Verestar Inc., and Teleglobe Inc., for the purchase of ten transponders on Anik F1, which will largely be used for internet traffic between North and South America.
- Telesat acquired 100% common share ownership of Infosat Communications, Inc., consolidating key BCE-owned satellite services under Telesat.
- Telesat and Satmex, Mexico's domestic satellite operator, concluded a $15 million, two-year contract for service to Mexican customers using Anik E1.
- In response to Industry Canada's call for applications to develop the Canadian satellite orbital slot at 118.7° WL, Telesat tabled two proposals with the Canadian government under which the company would design, build and launch two new satellites. One satellite would be used to provide innovative new capacity for broadcasting and telecommunications services, while the other would carry advanced multimedia services to individual Canadians and public institutions—including those in remote and underserved areas.
About Telesat
Telesat is the world's most experienced commercial satellite operator. The company made history in 1972 with the launch of the first domestic commercial communications satellite in geostationary orbit. Today, Telesat provides telecommunications and broadcast distribution services in the Americas and is a leading consultant, operator and partner in satellite ventures around the globe. Telesat is a wholly owned subsidiary of BCE Inc., one of the world's leading telecommunications companies.
For more information:
Dan Tisch
Environics Communications (media only)
(416) 920-9000, ext. 260
dtisch@pr.environics.ca
Ted Ignacy
Telesat
(613) 748-0123
