Intelsat faces challenges despite progress on costs

Satellite operator Intelsat has said it is on track to meet its operating priorities and reduce debt, with better than expected progress on reducing operating costs.

The company posted second quarter revenues of US$616 million (€459 million), down 6% on the 2013 figure, and adjusted EBITDA of US$490 million, down from US$509 million in 2013. The company’s EBITDA margin improved from 78% to 80%, while it turned a 2013 2Q net loss of US$408 million into a profit of US$67 million.

On the downside, Intelsat said it faced a number of challenges limiting growth in the near term, including a lack of marketable inventory ahead of the launch of its next satellite in the fourth quarter, as well as reduced US government spending and intense network services competition in Africa.