Intelsat hit by reduced US government spending

Intelsat said that it “performed to plan” in the first quarter, but that revenue continued to be challenged by reduced US government spending and price pressure on network service applications in Africa.

Reporting results for the three months ending March 31, Intelsat CEO Dave McGlade said that the firm’s satellite programmes remain on track and that its Intelsat 30 launch, its single launch planned for 2014, is expected to fall in the third quarter.

He added that the business continued to support regional media customers with distribution services and DTT platforms.

“We expanded distribution agreements with leaders in the maritime sector, building on our leadership position in broadband mobility solutions. We ended the first quarter of 2014 with a contracted backlog of US$9.9 billion, providing visibility into revenue and cash flow,” he said.

Overall the firm reported first quarter revenue of US$628.9 million – down compared to US$655.1 million in the same quarter last year.

Media, including DTT services, comprised 36% of the company’s revenue for the quarter. At US$221.8 million, this marked a 1% year-on-year decline.

Net income attributable to Intelsat was US$81.9 million, compared with a loss of US$7.8 million in the same quarter last year.