Press Releases

Telesat reports second quarter results

BCE-owned satellite operator posts increases in both revenue and net earnings

OTTAWA, ON, July 30, 2003 - Telesat Canada, a wholly owned subsidiary of BCE Inc., announced today its unaudited financial results for the second quarter ending June 30, 2003. The company, which owns and operates satellites serving the Americas and provides a wide range of consulting services, posted $82.4 million in second quarter revenue and net earnings of $21.2 million, compared with $77.8 million in revenue and net earnings of $16.8 million in the second quarter of 2002.

For the first six months of 2003, consolidated operating revenue totaled $161.6 million (2002: $155 million) and net earnings were $43.3 million (2002: $29.4 million). The growth resulted from higher earnings from operations partially offset by higher taxes.

Cash flows from operating activities were $78.1 million for first six months of 2003 compared with $56.9 million for the comparable period in 2002.

Highlights of the second quarter included:

Telesat and Sixdion, an Aboriginal information management solutions company, entered into a partnership to provide high-speed satellite Internet service to 148 of Health Canada’s First Nations and Inuit Health Branch sites.
The company took over control of Mobile Satellite Venture’s (MSV’s) MSAT-2 satellite on May 1st, and is now operating both North American mobile communications satellites.
On May 5th, Telesat decommissioned the Anik C1 satellite, celebrating the amazing longevity of one of the world’s longest-serving communication satellites. Built by Hughes Aircraft Corporation (now Boeing Satellite Systems) with an anticipated nine-year life, the satellite was operated by Telesat throughout its entire lifetime of 18 years and 23 days.
Telesat leased an in-orbit satellite from Panamsat Corporation to be moved to Telesat’s 111.1° WL orbital position to provide interim capacity. This satellite, re-named Anik E2R, was successfully co-located with Telesat’s Anik E2. All traffic on Anik E2 was subsequently transferred to Anik E2R, which will provide service to customers for a minimum of ten months.
Telesat signed a navigational payload agreement with Lockheed Martin Corporation to provide a North American Wide Area Augmentation System (WAAS) beacon on Anik F1R, which is scheduled for launch in 2005.

About Telesat

Telesat is a world leader in satellite operations and systems management. The company made history in 1972 with the launch of the first domestic commercial communications satellite in geostationary orbit. Today, Telesat competes with other top international satellite fleets in providing telecommunications and broadcasting services throughout the Americas. Telesat is a wholly-owned subsidiary of BCE Inc., one of the world’s premier communications companies.

For more information:

Ted Ignacy
Telesat
(613) 748-0123

Dan Tisch or Melissa Chang (media only)
Argyle Rowland Communications
(416) 968-7311 ext. 223 or 239
dtisch@argylerowland.com
melissa@argylerowland.com