Intelsat revenues up 11%

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Intelsat is not yet profitable, not helped by $313m-worth of restructuring costs, but its overall revenues were up 11% (to $572.7m) in the quarter to March 31st.

The loss came about largely because of the somewhat-complex sale and purchase, back in February, of the parent company’s equity in Intelsat Holdings Ltd by Intelsat Global Ltd. Intelsat’s net loss of $412.7m for the quarter, which included $313.1m in restructuring and transaction costs incurred in connection with the February 4, 2008 acquisition (the “New Sponsors Acquisition”) of all of the equity ownership of its parent, Intelsat Holdings, Ltd., by Intelsat Global, Ltd. (formerly known as Serafina Holdings Limited), an entity controlled by funds advised by BC Partners Holdings Ltd., Silver Lake Partners and certain other equity investors.

“Total operating expenses for the three months ended March 31, 2008 increased by $349m, or 102% to $692.4m compared to $343.4m for the same period in 2007, with the increase primarily due to a $308.3m increase in restructuring and transaction costs in connection with the February 2008 New Sponsors Acquisition, and an increased loss on undesignated interest rate swaps of $41.1m,” said Intelsat’s statement.

Intelsat’s CEO Dave McGlade commented, “Intelsat delivered a strong first quarter. We achieved broad-based revenue growth, with increases reported by each of our three primary customer sectors, Media, Network Services and Government. The powerful forces of globalization, technology – including mobility, IP networks and high definition television – and deregulation continue to drive demand for our global communications infrastructure, as illustrated by our record contract backlog at quarter end of $8.3 billion.”

“Operationally, we are performing to our plan. Costs are in line with our objectives and margins are expanding, even as we invest in new service introductions to capitalize on mobility and broadband opportunities. We are building value through disciplined management of our fleet, optimizing existing transponder capacity and strategically replacing satellites. We are pleased with our first quarter results, and remain focused on the continued successful execution of our business strategy.”

Intelsat’s system average fill rate on its 2,197 station-kept transponders increased to 78% at March 31, 2008 as compared to 76% at December 31, 2007.




Source: Rapid TV News

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