Intelsat S.A., operator of the world’s first Globalized Network and leader in integrated satellite communications, today announced financial results for the three months ended September 30, 2018.
Intelsat reported total revenue of $536.9 million and net loss attributable to Intelsat S.A. of $374.6 million for the three months ended September 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 September 30, 2018 reflects $25.1 million primarily related to the significant financing component identified in our customer contracts.
Total revenue excluding the effects of ASC 606 was $511.9 million for the three months ended September 30, 2018.
Intelsat reported EBITDA1, or earnings before net interest, gain on early extinguishment of debt, taxes and depreciation and amortization, of $411.5 million and Adjusted EBITDA1 of$416.3 million, or 78 percent of revenue, for the three months ended September 30, 2018. Total Adjusted EBITDA excluding the effects of ASC 606 was $390.0 million, or 76 percent of revenue, for the three months ended September 30, 2018. Free cash flow used in operations1was $15.7 million.
Intelsat’s Chief Executive Officer, Stephen Spengler, said, “During the third quarter, Intelsatmade important progress on its operational and financial goals. Our stable financial results reflect a continuation of recent trends. Operationally, a major milestone was the successful launch of Horizons 3e, completing the global footprint of our high-throughput satellite fleet. The Intelsat EpicNG fleet powers new services in wireless network extensions, in-flight passenger broadband connectivity, broadband services for maritime fleets and high definition video from small aeronautical surveillance platforms. In the past weeks, we introduced the Intelsat FlexExecSM managed service for the business jet segment, complementing our previously announced government and maritime managed service platforms that leverage the Intelsat EpicNG network.
“Further, since July 1 we completed $4.2 billion in capital markets transactions, achieving an improved maturity profile for our capital structure. This, combined with our operational progress, allows us to advance our business goals.”
Spengler concluded, “The Comment Phase of the U.S. Federal Communications Commission C-band proceeding ended yesterday, a major milestone as we continue to advance our proposal. The formation of the C-Band Alliance, announced earlier this month, demonstrates that the continental U.S. C-band satellite operators are in full agreement on the technical and operational steps necessary to clear 200 MHz of spectrum over the course of the next 18 to 36 months. We will continue to advocate for our breakthrough, market-based approach that is the best path to protecting incumbents while repurposing spectrum that will accelerate 5G deployment and innovation in the U.S.”