Weaker Canadian dollar no help to Telesat’s bottom line in 2015 Q3

Ottawa’s Telesat had a “solid” third quarter with revenues of $242 million, CEO Dan Goldberg said Thursday.

“Although revenuegrew on a reported basis relative to the third quarter last year, it declined one per cent after taking foreign exchange rate changes into account,” Mr. Goldberg said in a statement. “Nonetheless, we achieved a reduction in operating expenses, a slight increase in Adjusted EBITDA,an expansion of our adjusted EBITDA margin and continued to generate a significant amount of cash from our operating activities.”

Telesat’s operating expenses, at $44 million, were 10 per cent lower than the same period last year, or 16 per cent lower when adjusted for foreign exchange rates. The decrease was related to lower share-based compensation expense, lower bad debt expense and lower cost of equipment sales, the company said.

The firm’s adjusted EBITDA of $198 million was up nine per cent year-over-year, or one per cent with foreign exchange rates taken into consideration. Telesat’s adjusted EBITDA margin increased to 81.9 per cent from 79.9 per cent for the same quarter last year.

A weaker Canadian dollar played a significant role in the company’s quarterly net loss rising to $139 million from the $41 million it posted in the same quarter last year.