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Intelsat posts $32.7m second-quarter loss

Bermuda-based Intelsat Ltd. suffered a $32.7 million net loss for the second quarter of 2009, despite seeing revenue rise by 10 percent ($57.6 million) to $642.5 million on demand for communications infrastructure over the same period.

The fixed satellite services provider, which made a net loss of $82 million for last year's second quarter, also made EBITDAi or earnings before net interest, loss on early extinguishment of debt, taxes and depreciation and amortisation of $522.4 million for the three months ended June 30, 2009.

The increase in revenue from $584.9 million the previous year was mainly attributed to new business, strong renewals, expansion of existing contracts and improved contract terms.

Intelsat continued to build the value of its regional media neighbourhoods, with African direct-to-home television services provider, Multichoice, signing a long-term agreement for satellite capacity, extending and expanding its existing agreement on the Intelsat 7 satellite to the follow-on satellite Intelsat 20, which is expected to be launched in early 2012.

Meanwhile, the company's network services business continued to reflect the demand from wireless operators for satellite-based infrastructure to support cellular networks, as Intelsat signed agreements with Hughes Telecomunicacoes do Brasil and Intelig Telecomunicacoes Ltda. in South America, as well as Senegal services provider, Sonatel, for cellular backhaul applications in Africa, the second quarter.

Elsewhere, Intelsat's 11 satellite construction and launch programmes continued to progress, while the company's system average fill rate on its approximately 2,050 station-kept transponders was 85 percent at June 30, 2009.