The following is a summary of the Telesat Corporation (TSAT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Telesat reported annual revenues of CAD704 million for 2023 and adjusted EBITDA of CAD534 million.
In Q4, the company reported revenues of CAD166 million and adjusted EBITDA of CAD123 million.
Telesat projects full-year revenues for 2024 to fall between $545 million and $565 million, and an adjusted EBITDA between $340 million to $360 million.
Significant competition from Starlink is projected to negatively impact the aerospace and maritime sectors, causing up to a 50% decline in 2024 revenues.
Owing to the renewal secured with Bell for Nimiq 4, there's a projected decline in broadcast revenues that majorly factors into their 2024 guidance.
Business Progress:
Emphasizing on the Lightspeed Program, Telesat has formed partnerships with MDA and SpaceX.
Aiming to build a global satellite broadband network transitioning from Geosynchronous Equatorial Orbit (GEO) to Low Earth Orbit (LEO) in 2024.
Telesat anticipates a significant team working on Lightspeed, with a preliminary design review planned for Q3 2024 and the first lightspeed satellite launch is set for June 2026.
Despite client contract losses - particularly in the maritime sector, and significant revenue reductions expected, Telesat is focusing on strategic partnerships and securing significant government funding for the Lightspace program.
The company projects substantial savings through reduced borrowing costs and capital expenditure, estimated at $750 million, and government funding around $2.1 billion.
More details: Telesat IR
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