{"id":56338,"date":"2021-11-05T21:17:30","date_gmt":"2021-11-05T13:17:30","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/intelsat-restructuring-costs-add-up-to-a-net-loss-in-q3-2021\/"},"modified":"2021-11-05T21:17:30","modified_gmt":"2021-11-05T13:17:30","slug":"intelsat-restructuring-costs-add-up-to-a-net-loss-in-q3-2021","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/intelsat-restructuring-costs-add-up-to-a-net-loss-in-q3-2021\/","title":{"rendered":"Intelsat Restructuring Costs Add Up to a Net Loss in Q3 2021"},"content":{"rendered":"<\/p>\n

Global satellite operator Intelsat<\/strong> generated a 7% year-over-year increase in total revenue during its third fiscal quarter of 2021, but its hefty legal and restructuring costs caused net losses to jump from $15.9 million to $145.7 million.<\/p>\n

Intelsat earned $526.1 million in revenue and spent $98.3 million in reorganization costs in Q3, including professional and financing fees related to its debtor-in-possession senior secured credit facilities. The operator\u2019s income tax expenses also increased $21.3 million year-over-year due to higher income from its U.S. subsidiaries \u2014 mainly its In-Flight Connectivity (IFC) business. The operator also incurred $17.9 million of C-band clearing expenses during the quarter.<\/p>\n

These are the first results Intelsat has released since Stephen Spengler, the operator\u2019s CEO for the past 18 years, surprised many last month with an an announcement that he was retiring from the company once it emerged from Chapter 11 bankruptcy. He later told Via Satellite<\/em> magazine that he had planned the retirement for some time, and that the decision \u201cwasn\u2019t easy.\u201d Intelsat has yet to name a CEO to replace Spengler.<\/p>\n

Intelsat\u2019s third quarter results also highlight just how important its August 2020 acquisition of Gogo<\/strong>\u2018s commercial In-Flight Connectivity business was to its core financial health. The operator\u2019s network services division grew its Q3 revenues by 43% year-over-year to $241 million on the back of increasing demand for IFC services and the expansion of services with mobility and network customers.<\/p>\n

However, Intelsat still has a way to go to get back to the level of network services revenue it was generating nine years ago in 2013, when the division was averaging $290 million per quarter.<\/p>\n

Intelsat\u2019s media division revenues continued to decline in Q3, dropping 11% year-over-year to $181.1 million. The operator attributed this quarter\u2019s decline to a planned service migration by a specific customer from Intelsat\u2019s network to the customer\u2019s own network assets.  Intelsat\u2019s Q3 media revenue peaked back in 2017, when it reached $237 million. It has gradually declined ever since.<\/p>\n

The operator\u2019s Q3 government services revenue decreased 12% year-over-year to $95 million, due to a \u201cone-time equipment sale\u201d in 2020, offset by new hosted payload services on Intelsat\u2019s Galaxy 30 satellite and increased demand for FlexMove land mobility managed services. Intelsat\u2019s government revenue has hovered between $95 million and $98 million for several years.<\/p>\n

Intelsat\u2019s average fill rate remains at 74% and its contracted backlog dipped from $6 billion in Q2 2021 to $5.7 billion in Q3 2021.<\/p>\n

\u201cWe delivered strong quarterly sequential results despite the secular headwinds impacting the satellite industry,\u201d said Spengler. \u201cNetwork Services benefited from the continued recovery in North American airline travel resulting in higher in-flight connectivity revenues. Media was impacted by a large planned service migration from the Intelsat network onto customer-owned assets coupled with the ongoing business trends. The start of hosted payload service on our Galaxy 30 satellite and continued demand for our FlexMove land mobility managed services created positive momentum for our Government business.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Global satellite operator Intelsat generated a 7% year-over-year increase in total revenue during its third fiscal quarter of 2021, but its hefty legal and restructuring costs caused net losses to jump from $15.9 million to $145.7 million. Intelsat earned $526.1 million in revenue and spent $98.3 million in reorganization costs in Q3, including professional and […]<\/p>\n","protected":false},"author":1,"featured_media":48977,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-56338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/56338"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=56338"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/56338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/48977"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=56338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=56338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=56338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}