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Intelsat posts loss for quarter

Satellite operator Intelsat has posted a net loss of US$213.4 million (€150 million) on revenues of US$642.4 for the three months to June 30. The results included a US$158 million one-off charge for loss on early extinguishment of debt resulting from refinancing activity. Intelsat posted EBITDA of US$500.8 million for the quarter.

The company has noted that it is likely to file a partial loss claim following the failure of the C-band reflector on its New Dawn joint venture satellite to deploy, a failure that could result in the termination of contracts worth an approximate US$310.2 million. Any proceeds from an insurance claim will be used in part to pay down the venture’s debt.

European business highlights included Romanian pay TV provider RCS&RDS’s renewal of its contract for the DigiTV DTH service from 1° West. In the Asia Pacific region, Canal Plus Overseas signed a multi-transponder agreement for capacity on the forthcoming Intelsat 18 satellite to deliver DTH services to New Caledonia.

“Business activity is strong, driven by favourable demand trends for broadband infrastructure and media distribution for direct-to-home and cable applications.  Overall growth was muted in the second quarter, as a result of reduced mobile satellite services revenues in our government business and decreased network services revenues.  Still, we experienced strong revenue growth of 9% in our government business and modest growth in our media business, resulting in steady overall revenue and maintenance of our 78% adjusted EBITDA margin in the period,” said Intelsat CEO David McGlade.