Vice President, Investor Relations
Intelsat Announces 2018 Second Quarter Results
Luxembourg, 31 July 2018
Intelsat S.A. (NYSE: I), operator of the world’s first Globalized Network and leader in integrated satellite communications, today announced financial results for the three months ended June 30, 2018.
Intelsat reported total revenue of $537.7 million and net loss attributable to Intelsat S.A. of $46.8 million for the three months ended June 30, 2018.
In the first quarter of 2018, we adopted the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”). As a result of the adoption of ASC 606, total revenue for the three months ended June 30, 2018 reflects $25.2 million primarily related to the significant financing component identified in our customer contracts.
Total revenue excluding the effects of ASC 606 was $512.5 million for the three months ended June 30, 2018.
Intelsat reported EBITDA1, or earnings before net interest, gain on early extinguishment of debt, taxes and depreciation and amortization, of $408.5 million and Adjusted EBITDA1 of $415.6 million, or 77 percent of revenue for the three months ended June 30, 2018. Total Adjusted EBITDA excluding the effects of ASC 606 was $390.5 million, or 76 percent of revenue, for the three months ended June 30, 2018. Free cash flow from operations1 was $4.9 million.
Intelsat’s Chief Executive Officer, Stephen Spengler, said, “This is a time of great opportunity for Intelsat. We are on the cusp of completing the global deployment of our next generation Intelsat EpicNG fleet, we are introducing more managed services to address high growth mobility applications, and we are increasingly recognized for the value of our global network of satellites and terrestrial infrastructure that connects billions of people around the globe.
“Our overall financial and operational performance year-to-date is tracking to our expectations against a global landscape of increasing mobility connectivity requirements. With our highly successful capital raise of approximately $633 million completed in the second quarter, we have taken significant strides in the management of our capital structure. This allows us to focus our energy on maximizing the commercial opportunities before us, not the least of which is the sizeable opportunity for satellite communications within the global race to deploy 5G.
“We are encouraged by the thoughtful reception that the Federal Communications Commission has given to the innovative proposal that we developed in conjunction with Intel. We’ll continue to promote our market-based proposal, joining with SES and more recently, Eutelsat. Our proposal will speed wireless access to spectrum in the 3.7-4.2 GHz band known as C-band, crucial for the development of the American economy, while not compromising on the protection of the quality and reliability of television and other critical services that currently rely on this spectrum.”
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 from (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 2018 Quarterly Commentary
Conference Call Information
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