Telesat Q2 revenue falls 30%, adjusted EBITDA down 43%

Telesat

06/08/2025 12:30

Overview

Telesat Q2 revenue falls 30% yr/yr, impacted by lower contract renewals

Adjusted EBITDA for Q2 declines 43%, reflecting reduced customer services

Net income for Q2 decreases, affected by lower revenue and debt repurchase gains

Outlook

Telesat expects 2025 revenue between C$405 mln and C$425 mln

Company forecasts 2025 adjusted EBITDA between C$170 mln and C$190 mln

Telesat plans 2025 capital expenditures of C$900 mln to C$1.1 bln

Company focuses on expanding backlog in enterprise, aviation, maritime, government

Result Drivers

CONTRACT RENEWALS - Revenue decline primarily due to lower renewal rates with North American direct-to-home TV customers

SERVICE REDUCTIONS - Decreased services for Indonesian rural broadband and another North American direct-to-home customer contributed to revenue drop

LEO CONSULTING - Lower LEO consulting revenues also impacted overall revenue performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$106 mln
Q2 Net Income
C$76 mln
Q2 Adjusted EBITDA Margin
55.3%
Q2 Operating Expenses
C$51 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

Press Release: ID:nGNXjXgyZ

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)