Telesat’s headquarters in downtown Ottawa, Ontario, Canada. Photo: Telesat

Revenue for Canadian satellite operator Telesat dipped 17% in the first quarter of 2024 compared to the same time last year. Telesat reported $152 million Canadian dollars ($111 million) in revenue in the first quarter of 2024. 

The revenue decline was due to reduction of services and lower renewal rate on a direct-to-home capacity deal. Telesat also reported lower revenue from certain mobility and Latin American customers and lower equipment sales to Canadian government customers. 

Adjusted EBITDA for the quarter was CA$111 million ($81 million), a decrease of 20% compared to the same time last year. Adjusted EBITDA margin was 72.8% in Q1, compared to 75.7% in the same period in 2023. 

Net loss was CA$52 million ($38 million) compared to net income of CA$28 million ($20 million) for the same period in the prior year. Telesat said the change was mostly due to to a negative variation in foreign exchange.

Telesat CEO Dan Goldberg commented that the company is focusing on maximizing adjusted EBITDA and cash flow “by seeking to mitigate anticipated revenue declines and rigorously manage our legacy cost structure,” while preparing for the upcoming Lightspeed Low-Earth Orbit (LEO) constellation. 

Goldberg confirmed Telesat is on track to meet its 2024 financial objectives of revenues between CA$545 million and CA$565 million ($399 million to $414 million) and adjusted EBITDA between CA$340 million and CA$360 million ($249 million to $263 million). 

Telesat expects Lightspeed operating expenses for this year to be between CA$80 million and CA$90 million ($59 million to $67 million).

In early April, Telesat secured a new loan from the government of Canada for CA$2.14 billion ($1.6 billion) for Lightspeed.