Q1 2025 Telesat Corp Earnings Call Transcript
Key Points
- Telesat Corp (TSAT) reported a significant multi-year agreement with ViaSat, highlighting the capabilities of the Lightspeed constellation.
- The company has nearly CAD1.1 billion in LEO backlog, indicating strong momentum and a robust pipeline of opportunities.
- Telesat Corp (TSAT) ended the quarter with $797 million in cash, providing a solid financial position.
- Interest expense decreased by $8 million due to debt repurchases and lower market rates, resulting in annual interest savings of approximately USD54 million.
- The company has reiterated its guidance for 2025, showing confidence in achieving its financial targets.
- Revenues decreased by $25 million compared to the first quarter of 2024, primarily due to a lower rate on the renewal of a long-term agreement with a North American direct-to-home customer.
- Operating expenses increased by $6 million, driven by increased headcount at Telesat Lightspeed and higher legal and professional fees.
- Adjusted EBITDA decreased by $43 million, with a margin of 57.7%, indicating pressure on profitability.
- The company recorded a net loss of $51 million for the first quarter, similar to the previous year's loss.
- Cash flows used by investing activities were $235 million, reflecting significant capital expenditures related to Telesat Lightspeed.
Good morning, ladies and gentlemen. Welcome to the conference call to report the first quarter 2025 financial results for Telesat. Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat.
I would now like to turn the meeting over to Mr. James Ratcliffe, Vice President of Investor Relations. Please go ahead, sir.
Thank you, Moe. Good morning, everyone and thank you for joining us today. Earlier this morning, we filed our quarterly report for the period ending March 31, 2025, on Form 6-K with the SEC and on SEDAR+.
Our remarks today may contain forward-looking statements. There are risks Telesat's actual results may differ materially from the results contemplated by the forward-looking statements as a result of known and unknown risks and uncertainties. For a discussion of known risks, please see Telesat's Annual Report and update filed with the SEC. Telesat assumes no responsibility
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