Intelsat S. A. (I) Tops Q3 EPS by 8c, Slight Miss on Revenues; Offers FY18 Revenue Outlook Below Consensus

Intelsat S. A. (NYSE: I) reported Q3 EPS of ($0.26), $0.08 better than the analyst estimate of ($0.34). Revenue for the quarter came in at $538.76 million versus the consensus estimate of $539 million.

• Third quarter revenue of $536.9 million; $511.9 million excluding effects of revenue recognition rules (ASC 606)
• Third quarter net loss attributable to Intelsat S.A. of $374.6 million after $204.1 million primarily non-cash loss on early retirement of debt and $107.9 million primarily non-cash provision for income taxes
• Third quarter Adjusted EBITDA of $416.3 million or 78 percent of revenue; $390.0 million or 76 percent of revenue excluding effects of ASC 606
• September 30, 2018 contracted backlog of $8.4 billion, or $7.3 billion excluding the effects of ASC 606
• 2018 guidance maintained, with the exception of a reduction in our guidance for 2018 Capital Expenditures

Intelsat’s Chief Executive Officer, Stephen Spengler, said, “During the third quarter, Intelsat made 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.”

GUIDANCE:

Intelsat S. A. sees FY2018 revenue of $2.06-2.11 billion, versus the consensus of $2.17 billion.

For earnings history and earnings-related data on Intelsat S. A. (I) click here.

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