Telesat Reports 62% Rise in Revenues to $137.3-M

OTTAWA, ON, Aug. 4, 2005/Satnews Daily/ — Telesat Canada, a wholly owned subsidiary of BCE Inc., said on Wednesday the company set new quarterly records for both revenue and earnings when it posted second quarter operating revenues of $137.3 million, representing a 62% increase from $85.0 million in the same period of 2004.

The company said its net earnings applicable to common shares of $26.3 million is 35% higher than the $19.5 million in the second quarter of 2004.

For the first six months of 2005, operating revenues totaled $245 million (2004: $168.9 million) and net earnings applicable to common shares were $45.8 million (2004: $38.6 million).

But Telesat said cash flows from operating activities were $79.6 million for the first six months compared with $88.2 million for the same period of 2004. The decrease was due largely to a one-time payment of income taxes in March 2005, and to a significant increase in accounts receivable associated with the rollout of a large North American interactive distance learning network.

During the second quarter, Telesat assumed on-station control of XM Satellite Radio’s recently launched satellite, which the satellite operator will manage along with the XM 1 and 2 satellites.

Telesat also completed the installation of the U.S. and Mexican portions of the network, meeting the contractual delivery date. The company expects to complete the Canadian and European components of the network by the end of the fourth quarter of 2005.

In May, Telesat launched its new two-way high-speed internet service, making it available to consumers through multiple distributors from coast to coast. The new service delivers always-on, always-ready high-speed Internet connectivity - anywhere and anytime.

Telesat is also working with the satellite manufacturer EADS Astrium to ready the new Anik F1R satellite for a launch late this summer. Anik F1R will provide valuable new capacity for Canadian direct-to-home satellite television services, and will feature an important satellite-based GPS navigation system that will make air traffic control safer, more reliable and more accurate than ever before.

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