Overview

* Telesat ( TSAT ) Q2 revenue falls 30% yr/yr, impacted by lower contract renewals

* Adjusted EBITDA for Q2 declines 43%, reflecting reduced customer services

* Net income for Q2 decreases, affected by lower revenue and debt repurchase gains

Outlook

* Telesat ( TSAT ) expects 2025 revenue between C$405 mln and C$425 mln

* Company forecasts 2025 adjusted EBITDA between C$170 mln and C$190 mln

* Telesat ( TSAT ) plans 2025 capital expenditures of C$900 mln to C$1.1 bln

* Company focuses on expanding backlog in enterprise, aviation, maritime, government

Result Drivers

* CONTRACT RENEWALS - Revenue decline primarily due to lower renewal rates with North American direct-to-home TV customers

* SERVICE REDUCTIONS - Decreased services for Indonesian rural broadband and another North American direct-to-home customer contributed to revenue drop

* LEO CONSULTING - Lower LEO consulting revenues also impacted overall revenue performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$106

Revenue mln

Q2 Net C$76 mln

Income

Q2 55.3%

Adjusted

EBITDA

Margin

Q2 C$51 mln

Operatin

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)