NSR's Satellite Operator Financial Analysis, 2nd Edition study is an
assessment of the key financial metrics for the leading global and regional
fixed satellite services (FSS) operators. It provides an in-depth analysis
of reported results over time, as well as a cross comparison between
the operators. Resulting benchmarks for the industry are also
reported, providing standards useful in decision-making. The outcome is an
evaluation of each company's execution of their strategy, with results that
determine true performance, health and outlook of the FSS operator community,
taking into account both internal and industry-wide factors. NSR puts the
results into context and ranks the FSS operators by performance and metric.
NEW in this Edition:
Enhanced granularity of past and current reported results
Improved in-depth analysis and relevant discussions
Increased number of metrics considered and reported
Focus analysis on peers' FY 2011 and H1 2012 performance
Conclusive discussion regarding each operators' performance and
execution of strategy
New format: easy to navigate, concise but still rich content,
presented in Microsoft PowerPoint
The study is a valuable resource that:
is beneficial to all industry insiders and institutions that need a deeper
understanding of the FSS sector's financial performance;
offers an assessment of reporting FSS operators and how they rank against
each other in each metric;
and, permits non-reporting FSS operators or other third parties to make
comparisons of themselves to the main reporting FSS operators.
Key financial assessments undertaken include:
Key financial metrics for FSS operators and industry average ranges for
conducting peer reviews
Leading operators for each metric and peer ranking
Key historical and expected trends among the publicly reporting FSS
operators and what it means for the outlook of the industry
Detailed Analysis Backed by the Latest Data
The detailed assessment of the key metrics relies on the latest results
reported, until H1 2012, as well as historical data going back to 2006 from
the leading FSS operators in the industry. This provides a solid quantitative
basis from which a comprehensive analysis of trends in specific financial
metrics can be drawn.
The report includes the following core elements:
Historical and current data, evaluated to determine individual and
peer performance over time
>Side-by-side ranking and comparison of satellite operators based on
their 2011 and 2012 H1 performance in each specific financial metric
>Detailed insights into how the individual operators stand in
relation to each other and who leads in each metric
A one-by-one assessment of each of the leading reporting operators
based on their 2006 to H1 2012 data
Discussion and weighing of specific trends as well as
projections on the future direction of the industry leaders
True mean values as well as typical standard deviations of key
metrics, providing an authoritative view and deeper understanding into the
meaning of each metric
EBITDA and EBITDA Margin
Revenue per TPE
Cost per TPE
Revenue per Employee
Years of Backlog to Annual Revenues
2. Debt Position and Solvency
Net Debt to EBITDA
Total Debt to Assets
Times to Interest Earned
3. CAPEX and Cash Generation
Annual CAPEX and Future Guidance
Total CAPEX to Annual Revenues
Total CAPEX to Operating Cash Flow
EBITDA to Cash Conversion Ratio
Free Cash Flow
Who Should Purchase this Report?
National, Regional, and Global Satellite Operators
Satellite Service Providers and Integrators
Banks, Financial Institutions Other Investors
Satellite Manufacturers and Launchers
Satellite Equipment Manufacturers
Regulators and Agencies Funding Telecom Research and Development
A Complete Analytical Perspective
Elements of this Study Include:
A Complete Power Pointreport document segmented by analysis and
discussion on all financial metrics and reporting satellite operators
An Excel file containing all data and graphs so the client can
easily use this work as a basis for their own internal market projections.
Ex. 2.248: Thaicom and IPSTAR Annual Revenues per Employee, 2006-2011
Ex. 2.249: Thaicom and IPSTAR Annual Revenues per Employee, 2006-2011
Ex. 2.250: Thaicom Conventional Satellite Business CAPEX Commitments, 2011
Ex. 2.251: Thaicom Conventional Satellite Business CAPEX Commitments, 2011
Satellite Operator Financial Analysis, 2nd Edition published by Northern Sky Research, LLC in October 2, 2012. This report price starts from US $ 2995.
The contents of this page may be different from the latest version. Please contact us for details.
Intelsat and Telesat IPOs on the Horizon
October 24th, 2012
Global Information Inc. would like to present a new market research report, "Satellite Operator Financial Analysis, 2nd Edition" by Northern Sky Research, LLC.
On May 18 this year, Intelsat Global Holdings, the worlds largest operator of satellite services, filed with the Securities & Exchange Commission to raise up to $1.75 (¬ 1.37) billion in an initial public offering (IPO) of its common stock. Specific date for the offering is still TBD. Meanwhile, the request for an IPO from one of Telesats two major investors, the Public Sector Pension Investment Board (PSP), was filed and disclosed in the last month. What are the motives for these IPOs, and are they justifiable ?
In the case of Intelsat, it clearly indicated that it will use some or most of the proceeds from the offering to repay its debt . The company reported a total debt of US$ 16 billion at the end of 2011, which is equivalent to a 7.7x Net Debt to Adjusted EBITDA level. The companys revenues have been relatively flat, while capital expenditures have continued to increase. It is evident that paying down debt is becoming an increasingly hot issue; while, as detailed in NSRs Satellite Operator Financial Analysis, 2nd Edition, Intelsats current execution of its growth strategy is not making this possible .
In the case of Telesat, it is PSP that is driving the IPO issue, with what seems to be the motivation that they simply want to cash out . The other major shareholder, Loral Space & Communications (Loral), is eager to maintain its holding. Potentially, the main reason for Loral to take this position could be related to a huge tax expense that might be incurred through a sale of its shares. It has been evident that Telesat has been prepared for a sale since PSP and Loral jointly acquired the operator in 2007. As outlined in NSRs Satellite Operator Financial Analysis, 2nd Edition, Telesat demonstrated extraordinary performance, increasing its Adjusted EBITDA by about CAN$ 260 million to CAN$ 623 million in 2011, while improving its Adjusted EBITDA margin from 63% in 2007 to 77% today; and achieving a Net Debt to Adjusted EBITDA reduction from close to 7.7x in 2008 to 4.1x in 2011. Telesats future holding has been a particularly speculated topic since the company was up for sale a year ago. Failure to close the deal, or to have the two shareholders agree, eventually resulted in the large one-off dividend payment in May, to the shareholders and senior management, of a total of CAN$ 704.6 million financed through issuing new debt.
What is there to gain for the new investors? Ultimately, in both IPOs, the new investors will be buying debt. Is this an attractive investment? And in todays volatile markets, is it good timing for an IPO?
The long-term and stable nature of two major satellite operators should generate strong interest, especially if they manage to grow their top-line . Thus, an IPO bringing lower debt and helping cash generation is likely to be perceived as a very stable investment with guaranteed dividends. Just look at SES and Eutelsat (Intelsats and Telesats closest peers), which are both public and whose stock has continued to perform well.
This investment-stability theme does justify to ask why PSP, as a pension fund with long term liabilities, wants to give up its Telesat investment so soon . Actually, Eutelsats major shareholder, Fonds strategique dinvestissement, is an affiliate of an organization created expressly to safeguard public funds, including the countrys civil servants pension funds and retirement accounts. They are clearly in it for the long haul.
The motivation for any investor in fixed satellite services should be and is the long-term stability and secure cash flows that the industry offers . Given this, the IPOs of Intelsat and Telesat are likely to be well received by the market and quickly achieve the equal status of their public peers, SES and Eutelsat. The question is whether their current investors have any better options at hand.
In the case of Intelsat, there is an urgent need to pay down its debt , in order for the satellite operator to move on to the next level of performance, and allow its investors to one day get a full return on investment. Although its debt level has not hampered its ability to invest in further growth, current high net interest costs have prevented the company from reporting a positive net profit for nearly a decade. It is time that this debt is paid down, substantially.
In the case of Telesat, the question to PSP is, "Whats the urgency ? What is the better option to consider in todays financial markets?" As a pension fund they should be expected to look long-term. So what is a better investment than the satellite operator with the largest (by far) Years of Backlog to Revenues in the industry? In its 2012 annual report, PSP stated that it typically holds its private equity investments for an average of five to ten years. On October 31, PSP will celebrate its five-year anniversary of its investment together with Loral in Telesat. Perhaps PSP is concerned with Telesats outlook and wants to sell now while the story is still good? Does Telesats impressive record of paying down its debt guarantee that they can do it again? Can the EBITDA margin improve further? Since Telesats current growth outlook is disadvantaged by the lack of expansion capacity, there must certainly be a plan to address this that creates further value?