Press Releases
Telesat reports third quarter results
BCE-owned satellite operator posts increases in both revenue and net earnings
OTTAWA, ON, October 29, 2003 - Telesat Canada, a wholly owned subsidiary of BCE Inc., announced today its unaudited financial results for the third quarter ending September 30, 2003. The company, which owns and operates satellites serving the Americas and provides a wide range of consulting services, showed continued growth in the quarter. Telesat posted $83.9 million in third quarter revenue and net earnings of $15.9 million, compared with $77.4 million in revenue and net earnings of $7.4 million in the third quarter of 2002.
For the first nine months of 2003, consolidated operating revenue totaled $245.5 million (2002: $232.4 million) and net earnings were $59.2 million (2002: $36.8 million). The earnings growth resulted from higher earnings from operations and foreign exchange gains partially offset by higher taxes and interest expense.
Cash flows from operating activities were $116.4 million for first nine months of 2003 compared with $95.1 million for the comparable period in 2002.
Highlights of the third quarter included:
- Long-term US contract: Telesat successfully extended its existing agreement with the Electronic Data Systems Corporation (EDS) for the VSAT (Very Small Aperture Terminal) maintenance service it provides to over 7,500 General Motors dealerships in the United States. In addition, the company secured the MAC (moves, additions and changes) portion of this same network. Both agreements are in place through June 2006.
- International consulting contracts: Telesat’s international consulting group was selected to provide technical monitoring services to Malaysia’s Binariang Satellite Systems, in support of its MEASAT-3 satellite procurement from Boeing Satellite Systems International. As well, Telesat was chosen to monitor the KOREASAT 5 satellite procurement from Alcatel Space, on behalf of Korea’s KT Corporation.
- Anik F2 nears completion: EMS Technologies delivered two SpaceMux on-board processor units and COM DEV International Ltd. delivered eight BEAM*LINK® analogue processors to Boeing Satellite Systems. These components have been successfully integrated with the Ka-band payload on Telesat’s Anik F2 satellite. The satellite is virtually complete and is currently entering the testing phases of the construction program. The launch is projected for the second quarter of 2004.
- Successful insurance claim: Following an anomaly on the Nimiq 2 satellite in February 2003, Telesat submitted an insurance claim for US$49.8 million. During the quarter, insurers accepted and subsequently paid the majority of the claim. Fifty percent of the proceeds received to date have been paid to Bell ExpressVu, the owner of the satellite’s transponders.
About Telesat
Telesat is a global pioneer 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., Canada’s largest communications company.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
