Intelsat Announces Second Quarter 2016 Results
- Second quarter revenue of $542.0 million
- Second quarter net income attributable to Intelsat S.A. of $116.4 million, including $131.4 million gain on early extinguishment of debt
- $9.2 billion contracted backlog provides visibility for future revenue and cash flow
- Intelsat 31 entered into service in late July; Intelsat 33e and Intelsat 36 on track for Q3 launch
- Intelsat reaffirms 2016 Guidance
Luxembourg, 27 July 2016
Intelsat S.A. (NYSE: I), operator of the world’s first Globalized Network, powered by its leading satellite backbone, today announced financial results for the three months ended June 30, 2016.
Intelsat reported total revenue of $542.0 million for the three months ended June 30, 2016. Net income attributable to Intelsat S.A. was $116.4 million for the three months ended June 30, 2016.
Intelsat reported EBITDA1, or earnings before net interest, taxes and depreciation and amortization, of $403.6 million and Adjusted EBITDA1 of $410.7 million, or 76 percent of revenue for the three months ended June 30, 2016.
Intelsat Chief Executive Officer, Stephen Spengler said, “Our 2016 business objectives are progressing on plan, with two of our four planned launches successfully completed and continued momentum on our next generation high throughput Intelsat EpicNG® platform. Our launch and in-service timelines remain on track. We are loading traffic onto our Intelsat 29e satellite, which entered into service in late March, and placed Intelsat 31 into service in late July. We recently signed our first global contract for our managed mobility service, IntelsatOne® Flex, an important milestone as we continue to build a differentiated, global high throughput service platform.”
“With $542 million in revenue and $411 million in Adjusted EBITDA, our second quarter financial results are consistent with our expectations for 2016,” continued Mr. Spengler. “Second quarter performance by customer set reflects the trends and operational accomplishments that were anticipated in the 2016 guidance established in February, and which we are reaffirming in totality today. As new capacity enters service over the balance of this year, we expect both our network services and media businesses to improve. In addition, the solid renewals and the six-month extension of an expiring contract will benefit our government business.”
Mr. Spengler added, “Our backlog continues to provide visibility into future revenue and cash flows that allows us to invest in our fleet and pursue our long-term business strategy. Backlog at June 30, 2016 was $9.2 billion, over four times our annual revenue. We are focused on effectively managing our capital structure while continuing to invest in initiatives that will drive customer growth.”
To read the full version of the earnings release, including detailed financial results, please download the Earnings Release.
To read the new Quarterly Commentary, including business trends, please download the Quarterly Commentary.
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1In this release, financial measures are presented both in accordance with U.S. GAAP and also on a non-U.S. GAAP basis. EBITDA, Adjusted EBITDA (or “AEBITDA”), free cash flow used in operations and related margins included in this release are non-U.S. GAAP financial measures. Please see the consolidated financial information below for information reconciling non-U.S. GAAP financial measures to comparable U.S. GAAP financial measures.
Q2 2016 Quarterly Commentary
Intelsat provides a detailed quarterly commentary on the company’s business trends and performance. Please visit www.intelsat.com/investors for management’s commentary on the company’s progress against its operational priorities and financial outlook.
Intelsat S.A. (NYSE: I) operates the world’s first Globalized Network, delivering high-quality, cost-effective video and broadband services anywhere in the world. Intelsat’s Globalized Network combines the world’s largest satellite backbone with terrestrial infrastructure, managed services and an open, interoperable architecture to enable customers to drive revenue and reach through a new generation of network services. Thousands of organizations serving billions of people worldwide rely on Intelsat to provide ubiquitous broadband connectivity, multi-format video broadcasting, secure satellite communications and seamless mobility services. The end result is an entirely new world, one that allows us to envision the impossible, connect without boundaries and transform the ways in which we live. For more information, visit intelsat.com.