Telesat Delivers 28% Revenue Increase in Q1
Telesat Canada, a wholly owned subsidiary of BCE Inc., announced today its unaudited financial results for the first quarter ending March 31, 2005. The company, which owns and operates satellites serving the Americas and provides a wide range of consulting services, posted
$107.7 million in consolidated revenue, a 28% increase from $83.9 million in the same period last year. The company continued its long track record of profitability with the net earnings of $19.5 million, an increase of 2% from the first quarter of 2004.
Cash flows from operating activities were $39 million compared with $51.6 million in 2004, a decrease of $12.6 million from the first quarter of 2004. The decrease was largely due to a one-time payment of income taxes in
Highlights for the first quarter of 2005 included:
- Anik F1R satellite testing: Telesat completed the environmental testing phase for its new Anik F1R satellite, and is now in the final stage of system testing. The satellite should be ready for service in
the fourth quarter of 2005.
- Satellite broadband prepares for lift-off: Telesat concluded three distribution agreements for the new satellite broadband service operating in the Ka-band on the company's Anik F2 satellite. Barrett Xplore Inc. will offer nationwide service to the consumer and business
markets, and Telebec and NorthernTel will provide regional service to Ontario and Qu�bec.
- Broadband equipment purchase: Telesat entered into an agreement with ViaSat Inc., a producer of digital satellite telecommunications and wireless signal processing equipment, to support the resale of the new
Ka-band broadband service. ViaSat will provide the remote terminal equipment required at the customer premises into 2006.
- Interactive distance learning rollout: Telesat continued its work as the prime vendor for one of the world's largest interactive distance learning (IDL) networks. The company has distributed 5,000 integrated
IP receiver/IDL control units for installation in the United States and Mexico during the first quarter. The Canadian and European roll out will occur at a later date.
- Anik E1 retirement: Telesat's Anik E1 satellite, launched on September 26, 1991, was retired on January 18, 2005, having far exceeded its 12-year lifetime design.