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Telesat making ‘strong progress’ on Lightspeed, CEO says as firm’s revenues fall in Q3

November 14, 2024

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Telesat’s CEO says the Ottawa firm is making “strong progress” in the production of its US$3.5-billion low-Earth-orbit satellite constellation as it ramps up the project that’s expected to start serving commercial customers in 2027. “The third quarter showed strong progress in our build-out of Telesat Lightspeed, our state-of-the-art Low Earth Orbit (LEO) constellation,” the firm’s chief executive, Dan Goldberg, said in a statement on Thursday announcing Telesat’s financial results for the three-month period ending Sept. 30. “During the quarter, we concluded our funding arrangements with the governments of Canada and Quebec, securing the financial resources necessary to fund the global Telesat Lightspeed network. Telesat Lightspeed will revolutionize broadband connectivity for enterprise and government users and represents a highly compelling growth and value creation opportunity for Telesat and its stakeholders.” In September, the federal government announced it is lending Telesat $2.14 billion to help it build the constellation, which is expected to include 198 LEO satellites. Quebec’s government, meanwhile, announced a loan of $400 million to the company, which has contracted aerospace technology firm MDA to build its satellites in Ste-Anne-de-Bellevue, Que., in the Montreal area. Telesat, which trades on the Toronto Stock Exchange and the Nasdaq, reported revenue of $138 million for the third quarter, down 20.9 per cent from a year earlier. The company attributed the drop in revenue to a reduction of services and lower rate on the renewal of a long-term agreement with a North American direct-to-home television customer as well as non-renewals and reductions on renewal of services by certain mobility and Latin American customers. The firm posted a profit of $68 million, compared with a net loss of $4 million in the same period in 2023. Telesat said the change was primarily due to a gain associated with the impact of changes in foreign exchange rates on the value of the company’s U.S.-dollar-denominated debt. Goldberg said Telesat remains “on track to meet or exceed” its 2024 revenue guidance of between $545 million and $565 million. “In addition to focusing on the Telesat Lightspeed build-out, we continue to show disciplined execution in managing our existing business,” he said. Telesat shares were up $1.39, or nearly eight per cent, to $18.85 in late-afternoon trading on the Toronto Stock Exchange.