Intelsat reports $218.8m net loss in Q1 2020

Intelsat S.A. has announced financial results for the three months ending March 31, 2020. Intelsat reported total revenue of $458.8m and net loss attributable to Intelsat S.A. of $218.8m for Q1. The satellite operator reported EBITDA, or earnings before net interest, taxes and depreciation and amortisation, of $263.3m and Adjusted EBITDA of $294.0m, or 64% of revenue, for the said period.

Total Off-Network and Other Revenues decreased by $2.5m, or 4%, to $54.8m, as compared to the three months ended March 31, 2019.

Selling, general and administrative expenses increased by $29.3m, or 57%, to $81.0m for the three months ended March 31, 2020, as compared to the same period last year. The increase was primarily due to a $19.5m increase in bad debt expense, largely as a result of a customer that filed for Chapter 11 bankruptcy protection.

Commenting on the report, Intelsat’s Chief Executive Officer, Stephen Spengler, said: “Like many companies, we were not immune to the effects of COVID-19, which created challenges for our underlying business. Our first quarter results reflect the decline in sea and air travel which negatively impacted our network services business. The media business also experienced disruptions primarily related to the decline in “occasional use” services for sporting events and concerts which were cancelled to comply with the broad stay-at-home orders issued during the period. We were pleased with the resilience of the government services business which delivered stable results in a challenging environment while generating renewals and new business contracts.”

Spengler concluded: “Last week we announced our decision to opt into the FCC Accelerated C-band Clearing Plan. We are already working closely with our customers and vendors to ensure we achieve the agreed upon milestones. Intelsat is committed to helping the US maintain its leadership in developing advanced telecommunications technologies. Our role in clearing the C-band will help create a winning formula for America in the race to deploy 5G networks.”