Intelsat posted revenue of $533 million (–2 percent) and Adjusted EBITDA of $418 million (+2 percent) in the second quarter of 2017.
The 2 percent increase in Adjusted EBITDA to $418 million was driven by lower operating expense, including an improvement in bad debt expense primarily related to increased collections from a delinquent account.
Intelsat has generated revenue of $215 million (–6 percent) from Network Services, $222 million (+5 percent) from Media and $86 million (–8 percent) from Sales to government customers.
What impacted Intelsat revenue
# pricing pressure as services renew for certain wide-beam network services applications
# reduced revenue resulting from point-to-point telecommunications infrastructure services moving to fiber alternatives
# revenue declines due to certain non-renewals
# low initial traffic as contracted managed services begin to build on our high-throughput satellites
# limited new U.S. government opportunities
# slower than expected revenue ramp on Intelsat 33e
# high volume contracts in the mobility sector
Intelsat CEO Stephen Spengler said: “We are making progress on sales of Intelsat EpicNG services with several new contracts on Intelsat 33e now completed, demonstrating that our new satellites are delivering superior performance for our service provider customers.”
“The introduction of Intelsat EpicNG enabled services, such as our wireless solutions for 2G and 3G network extensions, expands our market opportunities as we continue to deploy the Intelsat EpicNG network,” Stephen Spengler said.
Intelsat reported a net loss of $24 million for the three months ended June 30, 2017 against a net income of $116 million.
On June 16, 2017, Intelsat announced its capital expenditure $500-$550 million in 2017, $400-$475 million in 2018 and $400-$500 million in 2019.
