Intelsat relies on backlog to boost 2H income

Intelsat predicts a backlog of orders will boost its 2H10 performance, after cutting its losses during the first-half of the year.
 
The European satellite operator says outstanding contracts worth $9.4 billion (€7.1 billion) will help it to continue reducing its losses, which were down from $590 million in 1H09 to $285 million this year.
 
However, the firm’s 2Q10 figures paint a different picture, with net loss growing to $180.6 million from $32.7 million in 2Q09.
 
Intelsat said the increased loss was mostly due to a decline in service revenues during the quarter, which resulted in overall revenues falling $7.2 million year-on-year to $635.3 million.
 
Income during the quarter was also hit by a $104 million write-down on the firm’s Galaxy 15 satellite, which is drifting off course and likely to shut down during the back-half of the year.
 
That charge and other adjustments during the quarter hit the firm’s EBITDA, which fell $183.1 million to $339.3 million in 2Q10.
 
Regardless, CEO David McGlade is confident the firm will begin to see revenues pick-up during 2H10, noting the firm is “making good progress” on long-term growth initiatives, and “enhancing the value of our regional satellite neighbourhoods.”
 
The firm unveiled a new deal to supply C-band capacity to Sony Pictures Television shortly after announcing its results.
 
The deal covers the Intelsat 17 bird, which is due to launch during 2H, Satellite Today reported.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.