ARLINGTON, Va., April 22, 2025 (GLOBE NEWSWIRE) -- Telesat Government Solutions, a wholly-owned subsidiary of Telesat (Nasdaq and TSX:TSAT), today announced Ronald Thompson Jr., Colonel (retired), USAF, as Vice President of Telesat Government Solutions Growth. In this strategic role, Mr. Thompson will function as the chief growth officer, leading the business growth strategies and business development team for the company, with a mission of expanding the government user community for the Telesat Lightspeed ...

Core Insights - Satellites have played a crucial role in telecommunications since the launch of Sputnik in 1957, enabling various services such as media streaming and electronic communication [1] Industry Overview - Recent advancements in satellite technology are enhancing capabilities in monitoring, photography, and data transmission, which could lead to new investment opportunities in the satellite industry [1]

Company Overview - Telesat is a global satellite operator, previously known as Telesat Canada, providing connectivity solutions to governments, enterprises, and other organizations through its satellite fleet [1] Leadership and Expertise - Michael (Mike) Dion is an expert in FP&A, Corporate Finance, and Small Business, with 12 years of experience in Fortune 100 companies and various industries including Telecom, Media and Entertainment, Hospitality, and Construction [1] Investment Approach - The investment strategy focuses on identifying value opportunities where investors may overreact to negative news or underreact to positive news, emphasizing strong fundamentals and a preference for dividend-paying stocks [1] - The importance of cash flow is highlighted, indicating it is critical for both companies and investors at all levels [1]

Core Insights - Telesat has secured a significant multi-year contract with Viasat Inc. for its Lightspeed Low Earth Orbit (LEO) services, which will be integrated into Viasat's offerings for various markets including aviation, maritime, enterprise, and defense [1][2] Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, focusing on delivering critical connectivity solutions to address complex communication challenges [5][6] - The Telesat Lightspeed network is designed to meet the rigorous requirements of telecom, government, maritime, and aeronautical customers, promising high-capacity, secure, and resilient links with fiber-like speeds [6] Contract Details - Viasat plans to utilize Telesat Lightspeed to enhance its broadband connectivity services, particularly in the commercial aviation sector, where it is already the largest provider [2] - The integration will allow thousands of aircraft equipped with Viasat's GM-40 antenna to access the Telesat Lightspeed network starting in late 2027 [2] Service Capabilities - Telesat Lightspeed offers high-speed, low-latency broadband globally, ensuring quality connectivity for passengers on flights, including over polar regions, backed by enterprise-grade Service Level Agreements (SLAs) [3] - The network is built to government cybersecurity standards and employs a Zero-Trust Network Access architecture, making it suitable for defense communications [4]

Financial Data and Key Metrics Changes - Telesat reported revenues of $571 million for the full year 2024, with adjusted EBITDA of $384 million and cash from operations of $62 million, outperforming guidance [21] - In Q4 2024, revenues were $128 million and adjusted EBITDA was $73 million, down $38 million and $50 million respectively from Q4 2023 [22] - The adjusted EBITDA margin decreased to 57.4% in Q4 2024 from 74.3% in Q4 2023, with the GEO segment adjusted EBITDA margin at 78% compared to 82.2% in the same period [22][23] - A net loss of $447 million was recorded in Q4 2024, compared to a net income of $39 million in Q4 2023, primarily due to foreign exchange impacts [25] Business Line Data and Key Metrics Changes - The GEO business is expected to face continued revenue pressure in 2025, with a forecasted decline of approximately $155 million, largely due to lower rates from the DTH business and the end of service contracts [9][10] - The enterprise and consulting activities are also expected to contribute to revenue decline, particularly from maritime and aero markets due to competition from Starlink [10][11] - Operating expenses for Lightspeed are anticipated to increase by approximately $40 million in 2025, driven by investments in engineering and operations [11] Market Data and Key Metrics Changes - The enterprise business has seen significant revenue declines, with a drop of $93 million in 2024, attributed to competition from Starlink and the sale of the Infosat business [72][80] - The company expects continued headwinds in the enterprise space in 2025, with a shift from GEO to LEO impacting revenues [80] Company Strategy and Development Direction - Telesat is focused on disciplined execution in both GEO and LEO markets, with a strong emphasis on building out and commercializing the Lightspeed constellation [12][15] - The company has secured funding from the governments of Canada and Quebec for Lightspeed, investing over $1 billion in development and deployment in 2024 [7][21] - Telesat is optimistic about the market for commercial services, particularly in light of geopolitical shifts increasing demand for sovereign national security requirements [14][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging operating environment for the GEO business to persist in 2025, with a focus on mitigating market pressures [8][12] - The company is optimistic about the potential for Lightspeed, expecting to launch the first batch of satellites in late 2025 and seeing strong traction with prospective customers [13][14] - Management highlighted the importance of refinancing restricted group debt as a priority for the year [15][58] Other Important Information - Telesat ended 2024 with $552 million in cash on the balance sheet and a total leverage ratio of 6.68 times [21][31] - The company repurchased $262 million in debt during 2024, resulting in annual interest savings of approximately $54 million [27] Q&A Session Summary Question: Can you provide insight on the geopolitical shifts affecting discussions? - Management noted that discussions have accelerated due to a greater focus on sovereign customers needing access to advanced LEO networks, particularly in Canada [36][42] Question: What is the current backlog for Lightspeed? - Management indicated that the LEO backlog is around $600 million, including a significant agreement with the government of Canada, and expects it to grow significantly by the end of the year [44][50] Question: What is the update on debt restructuring? - Management confirmed that refinancing restricted group debt is a priority and is expected to be tackled sooner rather than later [56][58] Question: How does the GEO revenue decline look for 2026? - Management has not projected far into 2026 but noted that the GEO business is predictable, with visibility on major contract renewals [60][62] Question: What is the state of the enterprise business? - Management acknowledged challenges in the enterprise segment due to competition and the aging satellite fleet, but remains optimistic about future opportunities with Lightspeed [80][112]

Core Insights - Telesat reported a significant decrease in revenue and net loss for the year ended December 31, 2024, primarily due to reduced demand from North American direct-to-home satellite video customers and other market challenges [2][6][12]. Financial Performance - For the year 2024, Telesat's consolidated revenue was $571 million, a decrease of 19% ($133 million) compared to 2023, with a 20% decline when adjusted for foreign exchange rates [2][6]. - Operating expenses for 2024 were $208 million, an increase of 2% ($3 million) from 2023, attributed to higher wages and professional fees [3]. - Adjusted EBITDA for 2024 was $384 million, down 28% ($150 million) from the previous year, with an Adjusted EBITDA margin of 67.2%, compared to 75.8% in 2023 [4][5]. - Telesat reported a net loss of $302 million for 2024, a significant decline from a net income of $583 million in 2023, largely due to foreign exchange impacts and higher impairment charges [6][10]. Quarterly Results - For Q4 2024, Telesat's consolidated revenue was $128 million, a decrease of 23% ($38 million) compared to Q4 2023, driven by contract renewals and lower enterprise revenues [7]. - Operating expenses for Q4 were $58 million, an increase of 17% ($9 million) from the same period in 2023 [8]. - Adjusted EBITDA for Q4 was $73 million, a decrease of 40% ($50 million), with an Adjusted EBITDA margin of 57.4%, down from 74.3% in Q4 2023 [9]. Future Outlook - For 2025, Telesat expects revenues between $405 million and $425 million, reflecting anticipated declines in various customer segments and increased operating expenditures related to the Telesat Lightspeed program [12][19]. - The company has secured $2.54 billion in loan financing from the Governments of Canada and Quebec to support the Telesat Lightspeed project, which aims to enhance connectivity and create jobs in Canada [2][13]. Strategic Developments - Telesat completed the Preliminary Design Review for the Telesat Lightspeed program in December 2024, marking a key milestone in its development [2][13]. - The company has established strategic partnerships with Space Norway, Orange, and ADN Telecom, indicating strong customer interest in Telesat Lightspeed services [2]. Management Changes - Telesat's CFO Andrew Browne announced plans to retire later in 2025, with a search for his successor already underway [2][13].

Financial Performance - For the year ended December 31, 2024, Telesat reported consolidated revenue of $571 million, a decrease of 19% ($133 million) compared to the prior year[2]. - Adjusted EBITDA for the full year 2024 was $384 million, a decrease of 28% ($150 million), with an Adjusted EBITDA margin of 67.2%, down from 75.8% in 2023[4]. - Telesat had a net loss of $302 million for the year, compared to net income of $583 million for the prior year, primarily due to foreign exchange impacts and higher impairment charges[5]. - For the quarter ended December 31, 2024, consolidated revenue was $128 million, a decrease of 23% ($38 million) compared to the same period in 2023[6]. - Adjusted EBITDA for the quarter was $73 million, a decrease of 40% ($50 million), with an Adjusted EBITDA margin of 57.4%, down from 74.3% in the same period in 2023[8]. - Revenue for Q4 2024 was $127,995,000, a decrease of 22.8% from $165,901,000 in Q4 2023[22]. - Operating income for Q4 2024 was $(227,528,000), compared to $(9,668,000) in Q4 2023, indicating a significant decline[22]. - Net loss attributable to Telesat Corporation shareholders for the year 2024 was $(126,311,000), compared to a profit of $10,465,000 in 2023[22]. - Adjusted EBITDA for the year 2024 was $383,737,000, down from $533,702,000 in 2023, reflecting a decrease of 28.0%[27]. - Adjusted EBITDA margin for Q4 2024 was 57.4%, compared to 74.3% in Q4 2023, showing a decline in profitability[27]. Future Projections - For 2025, Telesat expects revenue between $405 million and $425 million, with Adjusted EBITDA projected between $170 million and $190 million[18]. - Telesat anticipates a substantial decrease in consolidated Adjusted EBITDA for 2025, down 53% at the mid-point of guidance compared to 2024[2]. Financial Position - Total assets increased to $6,945,179,000 in 2024 from $6,313,368,000 in 2023, representing a growth of 10.0%[23]. - Cash and cash equivalents decreased significantly to $552,064,000 in 2024 from $1,669,089,000 in 2023, a decline of 66.9%[24]. - Long-term indebtedness decreased to $3,096,615,000 in 2024 from $3,197,019,000 in 2023, a reduction of 3.1%[23]. - Total liabilities increased to $4,448,474,000 in 2024 from $3,914,385,000 in 2023, an increase of 13.6%[23]. - Telesat Corporation's total shareholders' equity rose to $2,496,705,000 in 2024 from $2,398,983,000 in 2023, an increase of 4.1%[23]. Contracted Revenue Backlog - Telesat's contracted backlog for future services was approximately $1.1 billion as of December 31, 2024[10]. - The contracted revenue backlog represents Telesat's expected future revenue from existing service contracts, primarily from satellite capacity agreements[29]. - The majority of Telesat's contracted revenue backlog is derived from contractual agreements for satellite capacity[29]. - The backlog calculation adheres to revenue recognition policies under IFRS 15, without discounting for present value[29]. Financial Metrics and Definitions - Telesat utilizes Adjusted EBITDA and Adjusted EBITDA margin to enhance understanding of operating results and facilitate comparisons with competitors[29]. - Adjusted EBITDA and Adjusted EBITDA margin are not substitutes for cash flows from operations or net income as indicators of liquidity and operating performance, respectively[29]. - Severance payments and special compensation for executives and employees are included in the financial metrics[29].

Satellite Fleet and Services - Telesat's GEO satellite fleet consists of 14 satellites, providing global coverage with a focus on the Americas, generating significant cash flows and maintaining a leading position in the satellite services market [339]. - For the year ended December 31, 2024, Telesat's broadcast services accounted for approximately 48% of total revenues, while enterprise services contributed about 47% [343]. - Telesat's consulting services contributed approximately 5% of total revenues for the year ended December 31, 2024, serving businesses and governments in over 40 countries [347]. - The company operates a primary Satellite Control Center in Ottawa, Ontario, managing 11 owned satellites and providing telemetry, tracking, and control services [353]. - Telesat Lightspeed is designed to provide fast, reliable, and secure broadband connectivity globally, targeting enterprise and government users who require fiber-like connectivity [330]. Revenue and Market Opportunities - Revenue breakdown for 2024 shows North America at $471.1 million, Asia and Australia at $36.5 million, Latin America and the Caribbean at $32.0 million, and Europe, the Middle East, and Africa at $31.5 million [344]. - Telesat's total addressable market (TAM) for GEO business is projected to reach approximately US$15.6 billion by the end of 2025, while the TAM for LEO is estimated at US$425 billion in 2025, expected to nearly double by 2032 [366]. - The enterprise and telecom market opportunity for LEO is estimated to be around US$415 billion in 2025, growing at a 7% annual rate to approximately US$575 billion by 2030 [368]. - The aviation market opportunity addressable by LEO is projected to be US$7 billion in 2025, with an anticipated growth rate of 15% annually, reaching US$15 billion by 2030 [376]. - The maritime market opportunity for LEO satellite constellations is expected to reach about US$3 billion in 2025, growing at a 7% annual rate to US$5 billion by 2030 [380]. Demand and Connectivity Solutions - Global broadband demand is forecasted to grow from 160 exabytes per month in 2023 to 563 exabytes per month in 2029, representing a 23% compound annual growth rate [361]. - Telesat Lightspeed is designed to provide low latency and high throughput, addressing the connectivity needs of underserved areas, including over three billion people lacking adequate broadband access [362][370]. - Telesat Lightspeed aims to deliver fiber-like connectivity to high-demand areas, including airports and seaports, to meet concentrated demand for connectivity [369]. - The flexible architecture of Telesat Lightspeed will allow dynamic allocation of capacity to any plane or maritime vessel globally, enhancing service delivery [379][383]. - Telesat's focus on enterprise and telecom markets will initially prioritize backhaul services, with potential future expansion into direct-to-consumer services as technology evolves [372]. Government and Regulatory Engagement - The company plans to leverage government programs aimed at improving connectivity in remote areas, such as the US$20 billion Rural Digital Opportunity Fund and the US$42 billion Broadband Equity, Access, and Deployment program [374]. - The government market opportunity for Telesat Lightspeed is estimated to be approximately US$1.8 billion in 2025, growing at an annual rate of 23% to reach about US$5.2 billion by 2030 [385]. - The U.S. government is the largest user of commercial satellite communications, primarily for DoD operations, which are expected to increase global requirements for such services [386]. - Telesat has established contracts with various U.S. government agencies, including DARPA and the U.S. Space Development Agency, indicating strong interest in Telesat Lightspeed as a commercial satellite solutions provider [408]. Financial and Investment Aspects - Telesat has secured funding of up to approximately US$2 billion from the Canadian federal and Quebec provincial governments, along with US$1.6 billion in equity contributions, to support the Telesat Lightspeed program [395]. - An agreement with the Government of Canada will provide Telesat with $600 million over ten years to enhance internet connectivity in rural and underserved areas, expected to generate a total of $1.2 billion for Telesat [397]. - Telesat Lightspeed has received approximately US$2 billion in financing to support its operations and bridge the digital divide in Canada [417]. Technological Innovations - Telesat Lightspeed will feature advanced phased array antennas capable of dynamically focusing multiple Gbps of capacity into demand hotspots, enhancing service delivery [401]. - The Telesat Lightspeed network will provide true global coverage from pole to pole, fulfilling the needs of government and mobility markets [404]. - The Telesat Lightspeed system is designed to offer low latency, with data traveling approximately 20 times faster than GEO satellites, enhancing competitiveness in the satellite broadband market [404]. - Telesat Lightspeed demonstrated effective backhaul transport for mobile network operators with round trip latency of 18-40 milliseconds during testing, among the lowest for satellite broadband connections [412]. Competitive Landscape - Telesat competes with major satellite operators like SpaceX and Eutelsat, leveraging its innovative architecture and advanced technology to maintain a competitive edge in the market [411]. Regulatory Compliance and Risk Management - Telesat has extensive experience in regulatory compliance, crucial for operating and commercializing a satellite network [417]. - The company is required to maintain satellite insurance under the covenants of its Senior Secured Credit Facilities, applicable only to GEO satellites [467]. - Telesat plans to purchase transport insurance for its Telesat Lightspeed program to cover satellites after shipment from the manufacturer [469]. - Telesat's risk management program includes on-board redundancies and oversight of satellite manufacturing to reduce the risk of failures and lower insurance costs [464]. Legal and Tax Matters - Telesat Canada is involved in a contract dispute with Shaw regarding payments for services on the Anik F2 satellite, claiming damages of $45 million for breach of contract [477]. - The total disputed tax amount with Brazilian authorities for the period 2002 to 2021 is $93.5 million, including interest and penalties [478]. - The Canadian tax authorities previously reassessed Telesat for $13.1 million related to transfer pricing issues, which was reversed in late 2023, resulting in a tax refund [479]. - Telesat believes the likelihood of a favorable outcome in its tax disputes is more likely than not, and no reserve has been established for these disputes [479][480]. Environmental and Insurance Considerations - Telesat is subject to various environmental laws and regulations but is not aware of any material environmental matters outstanding or threatened [482]. - The satellite insurance market has deteriorated in 2024, leading to significant premium rate increases and additional coverage restrictions [472]. - Regulatory bodies in various countries are considering new regulations for sustainable satellite operations, which may impact Telesat's future compliance requirements [483].

Core Insights - Telesat and ADN Telecom have entered a multi-year partnership to provide Telesat Lightspeed low earth orbit (LEO) connectivity solutions in Bangladesh and South Asia [1][3] - Telesat's LEO network is designed to meet the connectivity needs of telecom, enterprise, and government customers, with the first satellite launches expected in the second half of 2026 [2][6] - ADN Telecom will utilize Telesat Lightspeed services to enhance its offerings, participating in early field trials and launching full-time services by late 2027 [3][4] Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, with over 55 years of experience in satellite operations and engineering [2][5] - ADN Telecom is a leading telecommunications provider in Bangladesh, known for its advanced infrastructure and commitment to delivering next-generation digital services [7][8] Partnership Details - The partnership will enable ADN Telecom to manage and deliver customized connectivity solutions for various sectors, including enterprise, maritime, and government [3][4] - Telesat's LEO services will be integrated with ADN's terrestrial network, expanding the reach of ADN's offerings both locally and internationally [4] Future Developments - Telesat Lightspeed aims to redefine satellite connectivity with high-capacity, secure, and resilient links that offer fiber-like speeds [6] - Both companies will collaborate to secure local regulatory approvals for the deployment of Telesat Lightspeed services in Bangladesh [4]

Core Viewpoint - Telesat is set to discuss its financial results for the year ending December 31, 2024, in a conference call scheduled for March 27, 2025, highlighting its position as a leading satellite operator in the industry [1]. Group 1: Conference Call Details - The conference call will be hosted by Telesat's President and CEO, Daniel S. Goldberg, and CFO, Andrew Browne [1]. - A news release containing financial results will be posted on Telesat's website prior to the call [2]. - The toll-free dial-in number for the teleconference is +1 800 952 5114, with an access code of 1687079 [2]. Group 2: Webcast and Replay Information - The conference call can also be accessed via a listen-only webcast [3]. - A replay of the teleconference will be available one hour after the call until April 10, 2025 [4]. Group 3: Company Overview - Telesat is recognized as one of the largest and most innovative global satellite operators, focusing on delivering critical connectivity solutions [5]. - The company is advancing its Telesat Lightspeed network, which aims to provide high-capacity, secure, and resilient satellite connectivity with fibre-like speeds [6].