Intelsat 2013 Results Reflect Challenges in the Government and African Markets
Washington, D.C., February 20, 2014-- Intelsat S.A. today reported total revenue of US$ 642.8 million and net income attributable to Intelsat S.A. of US$ 72.6 million, or $0.62 per share on a diluted basis, for the three months ended December 31, 2013. The company reported adjusted diluted net income per common share of $0.84 for the three months ended December 31, 2013.
Intelsat reported EBITDA, or earnings before net interest, taxes and depreciation and amortization, of US$ 506.4 million, and Adjusted EBITDA
of US$509.8 million, or 79 percent of revenue, for the three months ended December 31, 2013.
For the year ended December 31, 2013, Intelsat reported total revenue of US$ 2,603.6 million and a net loss attributable to Intelsat S.A. of US$ 255.7 million, or $2.70 per share on a diluted basis. The company reported adjusted diluted net income per common share of $2.44 for the year ended December 31, 2013. Intelsat also reported EBITDA of US$ 1,936.0 million, and Adjusted EBITDA of US$2,033.4 million, or 78 percent of revenue, for the year ended December 31, 2013.
Intelsat CEO David McGlade said, “Intelsat’s fourth quarter was in line with our expectations and capped a year of key accomplishments for the company as we position Intelsat to deliver on its long-term value creation strategy. The completion of our IPO, combined with successful refinancing activity, has enabled us to initiate our de-levering plan, improve our maturity profile and significantly reduce our debt service. On the operational side, in 2013, we have charted a solid course for steady longer-term growth expected upon the entry into service of our innovative
Intelsat EpicNG satellites beginning in 2016."
Intelsat reported a backlog at the end of 2013 of US$ 10.1 billion and it managed to decrease its overall debt by US$ 617 million in 2013. The end-2013 backlog was $200 million less than the backlog at the end of September 2013, mainly due to fewer goverment contracts.
“Performance overall continued to reflect two trends affecting our revenue growth, including the on-going effects of reduced U.S. government spending and the oversupply environment in Africa, which affects pricing within network services applications in that region, said McGlade. "At present, we believe these factors will persist in 2014, resulting in overall reduced revenues for the full year compared to 2013, while our mix of business and strong financial discipline should enable us to deliver Adjusted EBITDA margins consistent with 2013 results," he added.
Analyst firm Raymond James commenting on Intelsat's results said: "the company’s will continue to face notable headwinds in its government and African businesses that will likely challenge the company’s near-term growth prospects."
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