Quick Facts / Company Snapshot
- Legal Name: Telesat Corporation
- Trading Symbol: TSAT (Nasdaq & TSX)
- Headquarters Address: 160 Elgin Street, Suite 2100, Ottawa, Ontario, Canada K2P 2P7
- Total Revenue (2024): $571.0 million
- Net Loss (2024): $(302.5) million
- Adjusted EBITDA (2024): $383.7 million
- Adjusted EBITDA Margin (2024): 67.2%
- Total Assets (2024): $7,025 million
- Cash and Cash Equivalents (2024): $552.1 million
- Total Debt (2024): $3,098.1 million
- Contracted Revenue Backlog (2024): Approximately $1.1 billion
- Employees (2024): Approximately 610
- Fleet Size: 14 in-orbit Geostationary (GEO) satellites and 1 Low Earth Orbit (LEO) satellite
- Primary Operating Segments: GEO and LEO
- Key Growth Initiative: Telesat Lightspeed (LEO Constellation)
- Government Funding (Lightspeed): ~$2.54 billion (Government of Canada & Quebec)
- Top 5 Customers Revenue Share: Approximately 63%
- Fleet Utilization Rate: 72%
- Incorporation Jurisdiction: British Columbia, Canada
Company Overview
Telesat Corporation is a leading global satellite operator with a history of providing mission-critical communications services that dates back to the inception of the satellite industry. For over five decades, the company has delivered advanced satellite and ground facility solutions to support the requirements of sophisticated users worldwide. The company is defined by a culture of engineering excellence and a deep commitment to customer service, operating one of the largest satellite fleets in the world.
The company currently provides satellite services through a fleet of 14 in-orbit geostationary (GEO) satellites and one Low Earth Orbit (LEO) satellite. These assets occupy attractive orbital locations that offer global coverage with a specific concentration over the Americas. Telesat’s infrastructure serves as a platform for video distribution and Direct-to-Home (DTH) services in North America, as well as connectivity services for backhaul, corporate networks, maritime, aeronautical, and government users globally.
In addition to its established GEO business, Telesat is undertaking a transformative initiative known as Telesat Lightspeed. This project involves the development and deployment of a highly advanced constellation of Low Earth Orbit (LEO) satellites integrated with terrestrial infrastructure. Designed to revolutionize global broadband connectivity, Telesat Lightspeed aims to provide fiber-like broadband from the sky for commercial and government sectors, significantly expanding the company’s addressable market and growth potential.
Business Segments
Telesat manages its operations through two primary operating segments: GEO and LEO. The company reviews operating results, assesses performance, and makes capital allocation decisions based on these two distinct segments.
GEO Segment
- Operational Scope: This segment encompasses the company’s traditional business operations utilizing its fleet of 14 geostationary satellites and the Canadian payload on the ViaSat-1 satellite. It focuses on increasing the utilization of existing satellite capacity and maintaining operating efficiency.
- Strategic Focus: The segment targets high-quality, long-term customers to anchor replacement satellites and supports mission-critical connectivity for telecommunications, media, and government clients.
- Revenue Contribution: The GEO segment generates the vast majority of the company’s current revenue, derived from broadcast, enterprise, and consulting services.
LEO Segment
- Operational Scope: This segment is dedicated to the development, funding, construction, and eventual operation and commercialization of the Telesat Lightspeed constellation.
- Strategic Focus: The LEO segment represents the company’s primary growth engine, designed to capture the explosive demand for global broadband connectivity. It involves significant investment in state-of-the-art satellite and ground infrastructure to provide low-latency, high-capacity services.
- Revenue Contribution: While currently in the development and early commercialization phase (with some consulting revenue), this segment is projected to drive substantial future revenue growth upon the commencement of full commercial services.
History and Evolution
Telesat’s history is deeply rooted in the origins of the commercial satellite industry.
- 1962: Predecessors at AT&T and Bell Laboratories built Telstar 1, which successfully delivered the first live intercontinental satellite TV transmission between Europe and the United States.
- 1969: Telesat Canada was established by the Government of Canada under the Telesat Canada Act.
- 1972: Telesat Canada launched Anik A1, the world’s first commercial domestic communications satellite in geostationary orbit.
- 1978: The company launched the first commercial Ku-band satellite, facilitating the first Direct-to-Home (DTH) satellite television service and laying the groundwork for the global DTH industry.
- 1981: Telesat pioneered the widely-used industry practice of co-locating two satellites in a single orbital slot.
- 1992: Under the Telesat Reorganization and Divestiture Act, Telesat was continued as a business corporation, and the Canadian government sold its shares.
- 1996: The company became the first to provide internet access to Internet Service Providers (ISPs) over satellite.
- 2004: Launch of Anik F2, the first satellite to successfully commercialize DTH consumer Ka-band broadband services.
- 2007: Telesat Canada combined with Loral Skynet. Loral Skynet traced its roots to AT&T Skynet and Orion Satellite Corporation. This combination expanded the company’s focus from a North American provider to a global operator.
- 2009: Launch of Telstar 11N, the first satellite to provide Ku-band coverage of the Atlantic Ocean from the Arctic Circle to the Equator.
- 2018: Launch of the Phase 1 LEO satellite (LEO 1), marking the beginning of the Telesat Lightspeed program and providing the first high-speed broadband connectivity from LEO.
- 2021: Telesat Corporation completed a transaction to become a publicly traded company listed on the Nasdaq and TSX.
- 2023: Telesat launched the LEO 3 satellite for demonstration purposes and contracted MDA Ltd. as the prime satellite manufacturer for the Lightspeed constellation.
- 2024: Secured approximately $2.54 billion in funding from the Government of Canada and the Government of Quebec for the Telesat Lightspeed program.
Products and Services
Telesat earns revenue by providing satellite-based services, ground-based transmit and receive services, equipment sales, network management, and consulting.
Broadcast Services
- 2024 Revenue: $274.4 million
- Percentage of Total Revenue: 48%
- Operational Profile:
- Direct-to-Home (DTH): Telesat satellites are used exclusively by Bell TV and Shaw Direct, the two major DTH providers in Canada, to deliver television programming, audio, and information channels. Two satellites also support DISH Network in the U.S.
- Video Distribution and Contribution: The company provides full-time transmission of television programming for broadcasters, cable networks, and DTH providers.
- Bundled Services: Includes satellite capacity combined with digital encoding, uplinking, and downlinking services.
- Market Concentration: Approximately 95% of broadcast revenue is derived from North American DTH television services.
Enterprise Services
- 2024 Revenue: $267.8 million
- Percentage of Total Revenue: 47%
- Operational Profile:
- Telecommunication Carrier and Integrator Services: Provision of satellite capacity and end-to-end services for data and voice transmission. Applications include enterprise connectivity, internet backhaul, cellular backhaul, and rural telephony.
- Maritime and Aeronautical Services: Delivery of broadband communications to commercial airplanes and vessels via satellite capacity provided to service customers.
- Government Services: Significant provider of satellite services to the Canadian government and U.S. government (including through integrators).
- Direct-to-Consumer Broadband: Provision of capacity to Xplore in Canada and Hughes Network Systems in South America for two-way broadband internet.
- VSAT Services: Operation of satellite and terrestrial networks supporting enterprise and retail activities, including point-of-sale applications.
- Resource Services: Communications services for geographically diverse onshore and offshore locations for the oil, gas, and mining industries.
Consulting and Other Services
- 2024 Revenue: $28.9 million
- Percentage of Total Revenue: 5%
- Operational Profile:
- Global Consulting: Provision of services to businesses and governments in over 40 countries on more than 100 satellite systems.
- Client Base: Includes entities such as Airbus, Brit Insurance, Lockheed Martin, MDA Geospatial Services, Mitsubishi Electric, DARPA, Telkom Indonesia, and Viasat.
- Scope: Services cover the establishment and management of satellite networks and technical consultation.
Brand Portfolio
Telesat’s brand portfolio consists of its renowned satellite families, each serving specific markets and technical requirements.
Anik Satellites
- Profile: The Anik series (Anik F1R, F2, F3, F4, G1) primarily serves the Canadian and North American markets. “Anik” means “brother” in Inuktitut. These satellites provide DTH television, broadcast, and telecommunications services.
- Key Asset: Anik F2 was the first to commercialize consumer Ka-band broadband.
Nimiq Satellites
- Profile: The Nimiq series (Nimiq 2, 4, 5, 6) is dedicated to video applications. “Nimiq” is an Inuit word for an object or force that binds things together. These satellites are fully contracted for DTH services, primarily by Bell TV and DISH Network.
Telstar Satellites
- Profile: The Telstar fleet (Telstar 11N, 12 VANTAGE, 14R, 18 VANTAGE, 19 VANTAGE) serves international markets. They offer broad coverage across the Americas, the Atlantic Ocean, EMEA (Europe, Middle East, Africa), and Asia.
- Key Innovation: Telstar 12 VANTAGE was the first satellite to combine high-throughput satellite (HTS) spot beams with conventional broad beams.
Telesat Lightspeed
- Profile: The future LEO constellation brand. It represents a state-of-the-art mesh network in space designed to deliver secure, low-latency, fiber-like broadband connectivity globally.
Geographical Presence
Telesat maintains a global footprint with a concentration of revenue and infrastructure in North America.
Revenue by Region (2024)
- North America: $471.1 million (82.5% of total revenue)
- Latin America and Caribbean: $32.0 million (5.6% of total revenue)
- Europe, Middle East and Africa (EMEA): $31.5 million (5.5% of total revenue)
- Asia and Australia: $36.5 million (6.4% of total revenue)
Earth Station Infrastructure
Telesat operates an extensive ground infrastructure to control satellites and provide services.
- Allan Park, Ontario, Canada: Main earth station complex (owned) providing Telemetry, Tracking and Control (TT&C) services.
- Ottawa, Ontario, Canada: Primary Satellite Control Center (SCC).
- Mount Jackson, Virginia, U.S.: Earth station (owned) and back-up satellite control center for Telstar satellites.
- Belo Horizonte, Brazil: Owned teleport.
- Other Owned Facilities: Calgary, Alberta; Winnipeg, Manitoba; Montreal, Quebec.
- Leased Facilities: Victoria, British Columbia; Fort McMurray, Alberta; Hague, Saskatchewan; Saskatoon, Saskatchewan; Iqaluit, Nunavut; St. John’s, Newfoundland; Middleton, Virginia.
- Third Party Sites: Kapolei, Hawaii; Aflenz, Austria; Perth, Australia; Jakarta, Indonesia.
Financial Performance Analysis
Telesat’s financial performance reflects its position as a mature operator with significant cash generation capabilities, currently investing heavily in future growth.
Consolidated Performance (2024 vs 2023)
- Total Revenue: Decreased by $133.1 million to $571.0 million in 2024 from $704.2 million in 2023.
- Operating Expenses: Increased by $3.2 million to $207.8 million.
- Adjusted EBITDA: $383.7 million, representing a margin of 67.2%.
- Net Income/Loss: Swing to a net loss of $(302.5) million in 2024 from a net income of $583.3 million in 2023.
Multi-Year Trend Analysis
- Revenue Trend: Revenues have declined primarily due to the reduction of services to, and renewal rates with, North American DTH customers, as well as lower revenue from aero, maritime, and government sectors in the GEO segment.
- Net Income Volatility: Net income has shown significant volatility ($583.3 million profit in 2023 vs $302.5 million loss in 2024) largely driven by non-cash foreign exchange gains/losses on U.S. dollar-denominated debt and other operating items like C-band clearing proceeds recognized in 2023.
Profit and Loss Analysis
Revenue
- Total: $571.0 million
- Broadcast Revenue: $274.4 million (17.3% decrease year-over-year).
- Enterprise Revenue: $267.8 million (25.6% decrease year-over-year).
- Consulting and Other Revenue: $28.9 million (129.4% increase year-over-year).
Expenses
- Depreciation: $127.3 million (decreased by 30.3% due to end of useful lives of certain satellites).
- Amortization: $11.3 million.
- Compensation and Employee Benefits: $110.3 million (decreased by 6.4%).
- Cost of Sales: $38.0 million (decreased by 1.4%).
- Interest Expense: $219.6 million.
Profitability Metrics
- Operating Income: $157.0 million (compared to $616.7 million in 2023, which included significant C-band clearing income).
- Foreign Exchange Loss: $(244.5) million (compared to a gain of $77.8 million in 2023).
- Gain on Repurchase of Debt: $202.5 million (from repurchasing notes below par value).
Balance Sheet Analysis
Assets
- Total Assets: $7,025 million.
- Cash and Cash Equivalents: $552.1 million.
- Satellites, Property, and Other Equipment: $1,088.4 million.
- Intangible Assets: $2,878.7 million (includes orbital slots and trade name).
- Goodwill: $2,427.5 million.
Liabilities
- Total Liabilities: $5,338 million.
- Total Debt (Non-Current): $3,098.1 million.
- Short-term Indebtedness: $37.5 million.
- Other Long-term Liabilities: $289.2 million (includes deferred revenue and satellite performance incentives).
Equity and Liquidity
- Shareholder Equity: $1,687 million.
- Liquidity Position: $552.1 million in cash and short-term investments.
- Available Credit: $2.54 billion available under Telesat Lightspeed Financing facilities.
Cash Flow Analysis
Operating Activities
- Cash Generated: $62.5 million.
- Trend: Decreased by $107.6 million compared to 2023, primarily due to the decline in revenue, partially offset by lower interest payments.
Investing Activities
- Cash Used: $(1,091.6) million.
- Primary Use: Payments associated with the development and construction of the Telesat Lightspeed constellation.
- Comparison: In 2023, investing activities generated $212.0 million due to C-band clearing proceeds.
Financing Activities
- Cash Used: $(170.2) million.
- Primary Activity: Repurchase of a portion of Telesat Canada Debt.
- Comparison: In 2023, cash used was $355.7 million, also primarily for debt repurchases.
Free Cash Flow Insights
- The company has historically generated strong cash flows from its GEO business.
- Current cash flows are being heavily reinvested into the massive capital expenditure requirements of the Telesat Lightspeed program ($1.2 billion capex in the last 12 months).
Board of Directors and Leadership Team
Board of Directors
- Michael Boychuk: Director, Chair of the Audit Committee. Corporate Director.
- Jane Craighead: Director, Member of Audit and Human Resources Committees. Corporate Director.
- Richard Fadden: Director, Member of Nominating & Corporate Governance Committee. Corporate Director/Advisor.
- Daniel Goldberg: Director, President and Chief Executive Officer of Telesat.
- Henry (Hank) Intven: Director, Member of Audit and Nominating & Corporate Governance Committees. President of Haro Strait Consulting Inc.
- Dr. Mark R. H. Rachesky: Chair of the Board of Directors, Member of Nominating & Corporate Governance Committee. Founder and President of MHR Fund Management.
- Guthrie Stewart: Director, Member of Human Resources Committee. Corporate Director.
- Michael Targoff: Vice Chair of the Board, Chair of Human Resources Committee. Corporate Director.
- David Heebner: Director.
- Melanie Bernier: Director. Senior Managing Director, Private Equity at PSP Investments.
Senior Leadership Team
- Daniel Goldberg: President and Chief Executive Officer.
- Christopher S. DiFrancesco: Vice President, General Counsel and Secretary.
- Andrew Bray: Chief Financial Officer.
- Michèle Beck: Senior Vice President, Canadian Sales.
- Glenn Katz: Chief Commercial Officer.
- David Wendling: Chief Technical Officer.
Subsidiaries, Associates, Joint Ventures
Telesat operates through a network of subsidiaries, many of which are wholly owned.
Significant Subsidiaries
- Telesat Canada: The primary operating subsidiary located in Canada (100% ownership).
- Telesat LEO Inc.: Designated as an Unrestricted Subsidiary for debt purposes, holding the Telesat Lightspeed assets (100% ownership).
- Telesat International Limited: 100% voting rights.
- Telesat LLC: 100% voting rights (USA).
- Telesat Brasil Capacidade de Satélites Ltda: 100% voting rights (Brazil).
- Telesat Network Services, Inc.: 100% voting rights.
- Telesat Spectrum Corporation: 100% voting rights (Canada).
Joint Operations
- Telstar 18 VANTAGE: Telesat International Limited has a 42.5% interest in this satellite through agreements with APT Satellite Company Limited.
Physical Properties
Telesat owns and leases various properties to support its global operations.
Owned Properties
- Satellites: 14 in-orbit GEO satellites and 1 LEO satellite.
- Earth Stations:
- Allan Park, Ontario (65 acres of land).
- Mount Jackson, Virginia.
- Calgary, Alberta.
- Winnipeg, Manitoba.
- Montreal, Quebec.
- Belo Horizonte, Brazil.
Leased Properties
- Headquarters: 75,900 square feet at 160 Elgin Street, Ottawa, Ontario.
- Earth Stations: Victoria, British Columbia; Fort McMurray, Alberta; Hague, Saskatchewan; Saskatoon, Saskatchewan; Iqaluit, Nunavut; St. John’s, Newfoundland; Middleton, Virginia.
- Offices: Administrative and sales offices in various locations in Canada, the U.S., Brazil, England, and Singapore.
Segment-wise Performance
GEO Segment
- Performance: Continues to generate the majority of revenue ($571 million total company revenue is largely GEO-based).
- Operational Trend: Facing headwinds from declining DTH subscribers and completion of useful lives for certain satellites (e.g., Nimiq 4, Nimiq 5).
- Utilization: Fleet utilization rate stood at 72% as of December 31, 2024.
LEO Segment
- Performance: Currently generating minimal revenue, primarily from consulting (e.g., NASA Goddard Space Flight Center services).
- Operational Trend: Rapidly scaling up with a 24% workforce increase in the last 12 months and $1.2 billion in capital expenditures.
- Milestones: Completed funding agreements for $2.54 billion; construction of the constellation is underway.
Founders
Telesat was originally established by the Government of Canada in 1969 under the Telesat Canada Act. The company is a pioneer in the industry, launching the world’s first domestic commercial communications satellite in geostationary orbit. It was privatized in the 1990s and later acquired by Loral and PSP Investments before becoming a public corporation.
Shareholding Pattern
As of December 31, 2024, the outstanding share capital consisted of:
- Class A Common Shares: 2,442,921 shares.
- Class B Variable Voting Shares: 11,637,089 shares.
- Total Public Shares: 14,080,010 shares.
- Telesat Partnership LP Units:
- Class A and Class B LP Units: 18,321,792 units.
- Class C LP Units: 2,482,479 units.
- Special Voting Shares: One each of Class A, Class B, and Class C Special Voting Shares.
- Golden Share: One Golden Share outstanding.
- Major Shareholders: MHR Fund Management and PSP Investments (Public Sector Pension Investment Board) have substantial governance rights and voting interests.
Parent
Telesat Corporation is the ultimate parent company. It is a publicly traded entity with no single parent company, although it has significant shareholders (MHR and PSP Investments) who exercise substantial control. Telesat Corporation is the general partner of Telesat Partnership LP.
Investments and Capital Expenditure Plans
Telesat is in a phase of intensive capital investment focused on the Telesat Lightspeed program.
- Capex Allocation: Capital expenditures were $1.2 billion over the last 12 months, primarily directed toward the construction of the Telesat Lightspeed constellation.
- Telesat Lightspeed Funding: The company has secured a total funding package for the program, including:
- $2.14 billion loan from the Government of Canada.
- $400 million loan from the Government of Quebec.
- Approximately US$1.6 billion in equity contribution from Telesat.
- Strategic Priorities: The primary investment priority is the successful deployment of the first 156 satellites of the Lightspeed constellation to commence global service by mid-2026.
Future Strategy
Telesat’s strategy is twofold: optimizing its existing GEO business while aggressively deploying its LEO network.
- Maximize GEO Performance: Focus on increasing the utilization of existing GEO satellite capacity and maintaining operating efficiency.
- Deploy Telesat Lightspeed: Revolutionize global broadband connectivity by building an advanced constellation of LEO satellites. The network is optimized to serve enterprise, government, maritime, and aeronautical verticals.
- Vertical Market Expansion: Capture explosive demand for fiber-like broadband connectivity in unserved and underserved areas, targeting a Total Addressable Market (TAM) for LEO estimated at US$425 billion in 2025.
- Disciplined Growth: Pursue opportunities to invest in expansion satellite capacity only where strong market demand is anticipated and maintain financial discipline.
Key Strengths
- Global Leadership: A top global satellite operator with over 55 years of heritage and a blue-chip customer base.
- Orbital Assets: Possession of a portfolio of strategic and valuable orbital real estate with access to scarce spectrum rights.
- Revenue Visibility: Strong contracted revenue backlog of approximately $1.1 billion with 100% of backlog being non-cancellable.
- High Margins: Attractive operating margins with an Adjusted EBITDA margin of 67.2% for 2024.
- Technical Expertise: Industry-leading engineering expertise driving continuous innovation, from the first domestic commercial GEO satellite to the first LEO broadband tests.
- Government Support: Strong partnership with the Government of Canada, including a $600 million revenue agreement to bridge the digital divide and significant financing support.
Key Challenges and Risks
- Satellite Anomalies: In-orbit satellites utilize complex technology and operate in harsh environments; anomalies (like those experienced by Anik F2 and Nimiq 4) can result in lost revenues or shortened satellite life.
- Market Shifts: Changes in consumer demand, such as the decline in DTH subscribers due to the rise of terrestrial and OTT services, negatively impact broadcast revenues.
- Competition: Intense competition from global operators (Starlink, Eutelsat/OneWeb) and terrestrial networks could result in revenue loss and pricing pressure.
- Lightspeed Execution: The Lightspeed constellation involves significant technological, regulatory, and execution risks. Delays in launch or failure to develop commercial capabilities could materially affect viability.
- Regulatory Hurdles: Operations are subject to complex regulations by the ITU, FCC, ISED, and other bodies. Failure to obtain or maintain spectrum rights and landing rights could severely restrict operations.
- Debt Levels: Telesat has a significant amount of debt ($3.1 billion), which requires substantial cash flow for service and repayment, reducing financial flexibility.
- Supply Chain: Dependence on a limited number of suppliers for satellite construction and launch services exposes the company to risks of delay and cost increases.
Conclusion and Strategic Outlook
Telesat Corporation stands at a pivotal juncture in its history. While its traditional GEO business faces secular headwinds in the broadcast sector, it continues to generate robust cash flows and maintain high margins. The company is strategically pivoting toward the future of connectivity through its Telesat Lightspeed program. With fully secured funding, strong government backing, and a clear focus on enterprise-grade LEO services, Telesat is positioned to transition from a traditional satellite operator into a leader in the global broadband revolution. The successful execution of the Lightspeed constellation launch in mid-2026 will be the defining factor in the company’s long-term growth and value creation.
Official Site: https://www.telesat.com
FAQ Section:
- What is Telesat’s primary business? Telesat is a global satellite operator providing mission-critical communications services to broadcast, telecom, corporate, and government customers worldwide through its fleet of GEO and LEO satellites.
- What is Telesat Lightspeed? Telesat Lightspeed is the company’s planned Low Earth Orbit (LEO) satellite constellation designed to provide enterprise-grade, fiber-like, low-latency broadband connectivity globally.
- How many satellites does Telesat operate? As of December 31, 2024, Telesat operates 14 in-orbit Geostationary (GEO) satellites and 1 Low Earth Orbit (LEO) satellite.
- Is Telesat a public company? Yes, Telesat Corporation is publicly traded on both the Nasdaq Global Select Market and the Toronto Stock Exchange under the ticker symbol TSAT.
- Where is Telesat headquartered? Telesat’s headquarters are located at 160 Elgin Street, Suite 2100, Ottawa, Ontario, Canada.
- What was Telesat’s revenue in 2024? For the year ended December 31, 2024, Telesat reported total revenue of $571.0 million.
- Who are Telesat’s major customers? Major customers include Bell TV, Shaw Direct, DISH Network, Bell Canada, Hughes Network Systems, Marlink, Northwestel, Viasat, Vodafone, and the Government of Canada.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
