Intelsat Quarterly Revenue Rises 7%, Nets $35.3 Million in First Half

Washington DC, Aug. 4/Satnews Daily/ — Intelsat, Ltd reported today revenue of $261.7 million and net income of $18.5 million for the quarter ended June 30, 2004. For the first six months of the year, the company posted revenues of $497.0 million and net income of $35.3 million.

The company said its EBITDA, or earnings before interest, taxes and depreciation and amortization, for the six-month period was $339.3 million. The company also reported EBITDA of $174.7 million for the quarter.

Net income, however, decreased by $24.1 million, or 57 percent, to $18.5 million for the quarter from $42.6 million for the same period last year. This was attributed to higher total operating expenses and a $10.2 million increase in interest expense associated with Intelsat’s Senior Notes.

"Our enhanced North American reach is resulting in expanded opportunities with our international customer base. Our managed services business, which generated $18.1 million in second quarter revenue, grew over 20 percent on a sequential basis and has now reached a scale that is substantially replacing the revenue decline in our legacy channel and carrier services," said Intelsat chief executive officer Conny Kullman.

Intelsat attributed its stronger results to its government services business unit, which signed a number of multi-transponder agreements for government applications. In the second quarter, Intelsat was awarded several contracts to provide over 400 MHz of satellite capacity to government contractors and won a contract to provide hybrid satellite and terrestrial services in support of a global VSAT network.

Intelsat said its results for the three-month period reflect both increased lease services revenue and increased operating expenses associated the Intelsat Americas satellites and other assets acquired in March 2004. Total revenue increased $17.2 million, or 7 percent, to $261.7 million for the quarter from $244.5 million for the three months ended June 30 of last year. The increase was due to a net increase in lease services revenue of $17.9 million.

Company’s total operating expenses increased $42.0 million, or 25 percent, to $209.0 million for the quarter from $167.0 million during the same period last year.