Overview

* Telesat ( TSAT ) Q3 revenue falls 27% yr/yr due to changes in customer agreements

* Adjusted EBITDA for Q3 declines 51% yr/yr, margin drops to 46.3%

* Net loss for Q3 is C$121 mln, impacted by foreign exchange losses

Outlook

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

* Company forecasts 2025 adjusted EBITDA of C$170 mln to C$190 mln

* LEO operating expenses projected at C$75 mln to C$85 mln for 2025

* Capital expenditures for 2025 to range from C$900 mln to C$1.1 bln

Result Drivers

* CUSTOMER AGREEMENTS - Revenue decline driven by lower rates on renewal and expiration of agreements with North American direct-to-home television customer and reductions in services for other customers

* OPERATING EXPENSES - Increase due to higher legal and professional fees and LEO headcount growth, partially offset by higher capitalized engineering

* FOREIGN EXCHANGE AND FINANCIAL INSTRUMENTS - Net loss impacted by foreign exchange loss and changes in fair value of financial instruments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$101

Revenue mln

Q3 EPS -C$2.38

Q3 Net -C$121

Income mln

Q3 46.30%

Adjusted

EBITDA

Margin

Q3 C$58 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:

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(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.)