Higher revenue pushed losses down at Ottawa’s Telesat Holdings Inc. but it wasn’t enough to give the satellite communications company a profitable first quarter.
The company reported revenue of $241.9 million during the three-month period that ended on March 31. That’s up from $218.8 million during the same period last year and from $224 million during the previous quarter.
The company credited the revenue growth to its Anik G1, which entered into commercial service, and began generating revenue, in May 2013 and the sale of satellite services to another satellite provider, on a short-term basis.
“Anik G1 made important contributions to our results and we continue to execute well across the various markets in which we operate,” Dan Goldberg, Telesat’s president and CEO, said in a press release.
The boost in revenue pushed the company’s first quarter net loss down from $97.4 million during the same period last year to $28.2 million. That’s down from the previous quarter, when Telesat reported net income of $48 million.
“Our investments in additional satellite capacity combined with our industry-leading contractual backlog provide visibility into the stability of our future revenue and cash flow and position us well for the balance of 2014 and beyond,” Mr. Goldberg said.