Intelsat Revenues Climb in Q4

Bermuda-Based firm Taken Private by Consortium of Private-Equity Firms Last Month
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Satellite giant Intelsat posted a net loss of $2.6 million for the fourth quarter of 2007 against increased revenues of $575.5 million, a jump of $32.3 million, or 6%, from the fourth quarter of 2006.

The Bermuda-based firm -- which was taken private by a consortium of private-equity firms last month in a deal that left it with some $15 billion in debt -- noted that it has a backlog of $8.2 billion in future revenues from long-term transponder contracts.

Intelsat is seeing growth in sales of its network-services and government business segments, while its media business declined slightly as a percentage of overall revenues, from 37% in Q4 of 2006 to 36% in Q4 2007.

Intelsat’s transponder-services revenue increased by $22 million to $434.1 million, due primarily to higher demand for services from customers for wireless, data and Internet-related applications in Europe and Latin America and modest increases in services sold to media customers.

Managed-services revenue increased by $18.3 million to $73 million driven by Internet-related and network-broadband services sold to network-services customers. Revenue for managed broadband services to government customers and managed video services to media customers also increased compared with Q4 2006.

On the media side, Intelsat delivered more than 40 HD-video channels to North America and Europe and added new ethnic-program-distribution agreements with regional programmers such as View Africa, Russian TV Times and Mega TV Network.

“In 2007, Intelsat demonstrated the ability to deliver revenue growth, improved operating profit margins and positive free cash flow from operations even as we made significant investments in our fleet,” CEO David McGlade said in a statement. "Our fourth-quarter results provided a strong finish to a good year, with revenue growth in excess of 7% over the prior-year quarter after excluding our legacy channel-service offering. We believe Intelsat is well-positioned as an infrastructure provider of choice in each of the customer sets and regions served by our global network.”

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