The following is a summary of the Telesat Corporation (TSAT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Telesat Q3 2024 revenue was CAD138 million, a decrease from previous year, impacted by a renewed but reduced contract with a North American customer.

• Adjusted EBITDA for Q3 2024 stood at CAD96 million, with year-to-date adjusted EBITDA expected at or above CAD360 million.

• Net income for Q3 2024 was CAD68 million, significantly improved due to foreign exchange gains, contrasting a net loss in the previous year.

Business Progress:

• Telesat has successfully closed funding for its Lightspeed program, ensuring full financial backing and progressing on key technical and operational plans.

• Made significant strides in the Lightspeed program with expected global service launch and active engagements with customer communities across various sectors.

• Ongoing GEO activities included a strategic renewal agreement with EchoStar and restructuring of contract with Canadian ISP Explorer amidst financial adjustments.

Opportunities:

• Telesat has updated its revenue guidance for 2024 at the upper range of CAD545 million to CAD565 million, reflecting optimism from their operational performance and market demand for Lightspeed services.

• Announced collaborations and advancements, such as the contract with Intellian for gateway antennas and engaging in high-profile discussions that could lead to strategic benefits and market expansion.

Risks:

• Declining revenues due to contract adjustments with key customers such as DISH and potential market disruptions in satellite communication space highlighted by emerging competitors and technologies.

• Significant investments in the Lightspeed program, amounting to capital expenditures between CAD1 billion and CAD1.4 billion, present financial risks tied to successful execution and market adoption.

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