Second Quarter Results and Outlook - Research Report on Intelsat

Aug 07, 2015, 09:05 ET from www.aciassociation.com

NEW YORK, August 7, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Intelsat S.A. (NYSE: I). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=I

Highlights from our I Report include:

  • Top-Line Performance Review - On July 30, 2015, Intelsat S.A. released results for Q2 2015. The Company generated total revenue of $598.1 million, compared to $615.7 million in Q2 2014. Revenue from network service, declined by 6% YoY to $270.6 million. Whereas, revenue from media sector increased by 2%, from $217.0 million in previous year quarter to $222.0 million in Q2 2015. In addition, revenue from Government sector declined by 8% YoY amounting to $95.3 million.
  • Operating Performance - In Q2 2015, net income attributable to Intelsat was recorded at $60.2 million, compared to $66.8 million in reported in prior year quarter. Consequently, the Company's diluted earnings per share declined to $0.47, from $0.53 in same period last year. Operating income in Q2 2015 stood at $290.8 million, versus $315.1 million in same period last year. Further, EBITDA for the reported period amounted to $462.3 million, compared with $485.5 million reported in Q2 2014.
  • Liquidity Position - The Company's current assets as at Jun 30, 2015, were recorded at $418.6 million, compared to $455.9 million as at Dec 31, 2014. Intelsat's cash and cash equivalents declined from $123.1 million as on Dec 31, 2014, to $114.4 million as on June 30, 2015. Further, total current liabilities as at June 30, 2015, were at $547.8 million, lower than $627.1 million as at Dec 31, 2014.
  • Outlook for 2015 - Along with the results, the Company also gave its financial outlook for 2015. Intelsat expects revenue of around $2.330 billion to $2.380 billion for full year 2015. Adjusted EBITDA is anticipated to be approximately $1.81 billion to $1.86 billion. The Company forecasts its capital expenditure to be in a range of $675 million to $750 million.
  • Views of Management - Commenting on the Q2 2015 results, Stephen Spengler, CEO of intelsat said "overall, Intelsat delivered a solid second quarter with revenues of $598 million. Contract renewals in each of our network services, media and government businesses are within our expectations for the year and include promising contract expansions that use traditional and next generation Intelsat Epic NG services."  

To find out how this influences our rating on Intelsat S.A. read the full report in its entirety here: http://www.aciassociation.com/?c=I

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