Intelsat warns of lower revenues
Intelsat, the world’s largest satellite operator, says that its Q3 revenues will be hit by the slowdown in military and other ‘government’ spending. Speaking at the Deutsche Bank investors conference, Intelsat CEO Dave McGlade said the normal end-of-year buying burst from the US government’s Defense Information Systems Agency (DISA) will not happen this year.
McGlade said the normal pattern for DISA would be to spend its spare budget before year end or else the cash would be lost by the agency. The Federal Government’s financial year ended September 30th, hence the current problems in Washington. McGlade told conference delegates that the lack of spend would impact Intelsat’s Q3 revenues.
Typically, Intelsat generates around 19 per cent of its annual revenues from sales to government agencies and the military.