Telesat profits decline
February 22, 2013
Telesat Holdings has reported a bump in sales but a large decrease in profitability, which the company blamed on a large one-time insurance claim it received last year.
The Canadian maker of broadcast satellites reported its full-year financial results, stating revenues for 2012 of $846 million, a five per cent increase over the $809 million it reported in 2011. Net income for the year was $27 million compared to $237 million in 2011, a decrease of $210 million. The company said the drop in income was largely due to a one-time insurance payment of $135 million in 2011 which was received due to the failure of a solar array on one of its satellites.