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.