Telesat Reports Results for the Quarter and Twelve Months Ended December 31, 2024

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].