BCE-owned satellite operator maintains strong revenue and profitability
OTTAWA, March 8 /CNW/ - Telesat Canada, a wholly owned subsidiary of BCE
Inc., announced today its audited financial results for the fiscal year ending
December 31, 2006. The company, which owns and operates satellites serving the
Americas and provides a wide range of consulting services, maintained strong
revenue and profitability.
Telesat's 2006 consolidated operating revenue of $479.0 million
represented a 1% increase from $474.7 million in 2005. The company posted net
earnings applicable to common shares of $102.5 million, 15% higher than the
previous record of $88.9 million set in 2005.
Cash flows from operating activities were $217.1 million for the year
compared with $230.2 million for the same period in 2005, a decrease of
$13.1 million or 6%. The decrease is due to the costs for special one-time
executive compensation arrangements and to the expenses of the now-cancelled
initial public offering.
Highlights for the year included:
- Sale of Telesat: On December 18, BCE Inc. announced the sale of
Telesat to a new company formed by the Public Sector Pension
Investment Board and Loral Space & Communications Inc. The sale is
subject to regulatory approvals both in Canada and the United States
and is expected to close in mid-2007.
- Senior executive changes: In September, Telesat announced the
retirement of Larry Boisvert and the appointment of Daniel S.
Goldberg as the company's new president and CEO. Mr. Goldberg,
formerly president and CEO of SES New Skies, has 15 years' experience
in the communications sector.
- Anik F3 nearing launch: The launch of Telesat's Anik F3 satellite is
scheduled for the first half of 2007.
- Satellite construction: Early in 2006, Telesat signed a construction
contract with EADS Astrium and a launch contract with International
Launch Services for Nimiq 4, expected to be available for use in
2008. Telesat signed a construction contract in December with Space
Systems/Loral for Nimiq, 5, which is slated for launch in 2009. Bell
ExpressVu will have exclusive use of both these direct broadcast
- Industry Canada licensing call: On July 7, 2006, Industry Canada
issued a Gazette Notice Call for Applications to License Satellite
Orbital Positions. Telesat has applied for ten of the twenty-nine
total licenses for satellite orbital spectrum.
About Telesat (www.telesat.com)
Headquartered in Ottawa, Telesat Canada is one of the early pioneers in
satellite communications and systems management. Created in 1969, Telesat made
history three years later with the launch of Anik A1, the world's first
domestic communications satellite in geostationary orbit operated by a
Telesat operates a fleet of satellites for the provision of broadcast
distribution and telecommunications services, and is a highly respected
consultant and partner in satellite ventures around the world. Telesat has
offices throughout Canada, in the United States and in Brazil. On December 18,
2006, Telesat's parent company, BCE Inc., agreed to sell the satellite
operator for $3.42 billion to a new acquisition company formed by Canada's
Public Sector Pension Investment Board (PSP Investments) and Loral Space &
Communications Inc. As part of the agreement, Loral will transfer the fixed
satellite services and network services assets of Loral Skynet to the new
acquisition company, which assets will be combined with Telesat's.
For further information:
For further information: Ted Ignacy, Telesat, Tel: (613) 748-0123; Dan
Tisch or Karen Passmore (media only), Argyle Communications, (416) 968-7311,
ext. 223 or 228, firstname.lastname@example.org,