Intelsat’s Q4 & FY revenues down
February 22, 2016
By Chris Forrester
Satellite operator Intelsat’s Q4 and full-year numbers are both down on the same period last year. Q4 saw revenue of $571 million ($619 million, same period last year) and FY-2015 revenues were $2.353 billion ($2.472).
The operator’s data saw management say that 2015’s full year performance was much in line with previous guidance and the trends experienced during the year which saw pricing pressures in certain regions and continued reductions in US governmental spending, plus continued currency challenges from some markets.
“Contracted backlog at December 31st 2015 was $9.4 billion, representing expected future revenue under existing contracts with customers, compared to $9.5 billion at September 30th 2015. At 4.0 times trailing 12 months revenue (from January 1st 2015 to December 31st 2015), our backlog remains sizable and a foundation for predictable cash flow and investment in our business,” said Intelsat.
Despite the challenges, Intelsat’s launch plans for this current year will see an expected improvement in overall revenues. Intelsat says that its I-29e satellite launched at the end of January, and now undergoing final in-orbit testing, is already generating business. “Since October 30th 2015, Intelsat has signed nine additional Intelsat Epic agreements with customers, spanning applications including enterprise and fixed and wireless infrastructure. The majority of these agreements reflect existing customers transitioning from existing satellites to the Intelsat Epic platform. Most customers in this period contracted for at least the same amount of bandwidth, with two providing incremental commitments. In addition, contract terms on the Intelsat Epic satellites continued to be favorable, with the average contract length approximately six years, longer than that of the average fleetwide network services contract.”