- Telesat Corp (TSX:TSAT) (NASDAQ:TSAT) reported first-quarter revenue of C$185.77 million, a decline of 2.5% year-over-year.
- The revenue decrease was due to a reduction of service for one of Telesat's North American direct-to-home customers, termination and reductions on contract renewal of certain services, and a decline in equipment sales to Canadian government customers.
- EPS improved to C$1.13 from C$0.83 in 1Q21.
- The operating income decreased by 28% Y/Y to C$68.37 million, and the margin fell to 36.8% from 49.9% in 1Q21.
- Adjusted EBITDA was C$145.57 million (-4.2% Y/Y), and the margin contracted by 143 bps to 78.4%.
- Net cash from operating activities for the quarter was C$43.44 million, versus C$99.05 million a year ago.
- Telesat had contracted a backlog for future services of ~C$2 billion as of March 31. 2022.
- The company's board authorized the purchase of up to US$100 million in face value of additional debt.
- Telesat CEO Dan Goldberg stated, "We signed an important partial renewal with the DISH Network and entered into another agreement to support broadband connectivity for the cruise industry that makes use of virtually all of the capacity that Dish did not renew."
- FY22 Outlook reaffirmed: Telesat expects revenues of C$720 million - C$740 million and Adjusted EBITDA of C$525 million - C$545 million in 2022.
- It expects cash flows used in investing activities of US$100 million - US$120 million.
- Price Action: TSAT shares are trading higher by 4.62% at C$17.00 on TSX, and TSAT is higher by 4.05% at $13.14 on NASDAQ on the last check Friday.
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