TSAT - Earnings call transcript Q4 2023

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Operator

Good morning, ladies and gentlemen. Welcome to the conference call to report the fourth quarter 2023 financial results for Telesat.

Our speakers today will be Mr. Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat.

I would now like to turn the over to Mr. of Risk Director Senior Bolitho, Treasury Management. and Michael go ahead, Mr. Please Bolitho.

Michael Bolitho

Form morning, and ending our on SEC good you, we on December with SEDAR+. and morning. XXXX, year Thank the This filed the for annual XX, XX-F report

forward-looking today the and risks from to There remarks of risks by contemplated the results Our as statements. differ known a unknown actual result may are uncertainties. contain may materially results Telesat's forward-looking statements and

with see a forward-looking Telesat the discussion filed of annual For update statements. these SEC. please no revise Telesat's to risks, responsibility assumes report known or

to I Officer. Goldberg, will now turn the President call Executive over Chief Dan and Telesat's

Daniel Goldberg

give Okay. Thanks, progress to update on our thoughts numbers about share to as the Michael. morning date some detail, then the I'll the to Lightspeed Andrew I'll in questions. then call say then about to our words more this hand and an this last up open to speak for over year, few to performance expectations program. a and we'll year.

MDA some I'm staying margins, with we forward did Canada. path for value-enhancing the proceeds did job SpaceX and away, an partners our operating in discipline with effective in debt thing achieved C-band well and repurchases. landmark our as financing highly accretive a the I our arrangements really Telesat the with But most last XXXX. and agreements find important and far as and and government very operating including things and our innovative in EBITDA guidance, year executing important was Lightspeed We beating industry-leading adjusted maintaining were pleased clearing what believe securing focused we performance

time. to this accelerate long-standing community transition user satellite transitioning with over our networks, and is fully LEO will The expectations, consistent

in transformational For year LEO first that priority. that reason, marks Telesat XXXX forward our the highest transition where starts full to our earnest. make Telesat Lightspeed to is with program moving

and breaking what between down help to we're numbers as doing, year, this GEO all LEO our consolidated And we're and well. starting financials of showing you track

we're As evenly significant in you declines guidance the line morning, and around between expecting some our pretty released this year million video our in can businesses. revenue non-video split XXX see top GEO this that we CAD

giving not decline a we're lower rate the the of expecting Nimiq would EchoStar renewal On the with this Nimiq video, coming October on with magnitude not this top year. see to though today, have in impact from QX annual note, XXXX I of guidance the in comes from coming last X rate decline the We're as run full beyond line years. we primarily early X renewal on Bell as secured we well up expected

very past of DTH are Over business we're talked a Ryzen year we've by reductions over-the-top cord video we're headwinds in the that expecting our about in this the facing trend. cutting the the and driven really few platforms continuation years, much

The other being our our of revenue business, is revenues. with of services contributor the decline side biggest of half maritime expected enterprise erosion coming the from

first The Canada, of StarLink requirements customers network. service support reductions customer some LEO biggest Indonesia. expected of And government point-of-sale an segment a services. the the in disruptive GEO to lost LEO, they're driver namely enterprise is the from as on revenue the with migration the to market are in customer, universal in of meaningful in a networks Latin a we number number Other here program aero a in in retail America, from

why why path LEO little anticipated that the The We with even expected. faster If about we're the to talking we've broadband time. precisely connectivity, reality some and affordable, the some than on although StarLink market we to for compelling of LEO so is validation been and low building of happening which strong that latency don't bullish a we enterprise fully LEO, the a quite transition transition and want Lightspeed cannibalize Telesat it's it's requirements, And customer is on GEO love it. we're anything, customers our seeing embrace Lightspeed. we're of

OpEx. to Turning

expect by see We increase investments to year-over-year, in million driven the all an Lightspeed. making we're of XX which is roughly CAD

increase though world-class not to a building say who revolutionary be headcount industry lower and For see satellite and from we're advanced expansion. of want and and global I'm Individuals comes joining market to happy the orbit broadband professionals where Telesat. network. going really half is to getting part join out the wanting surprised bringing to

huge declining of employees, magnet roughly and a on end around we GEO the sense, GEO expect over X/X had rightsize for to XXX Lightspeed this year, working industry. dedicated on of our a give increase The actually a company the and have By GEO broadly steps throughout coming project XX% Lightspeed. roughly at are across talent team a them the more with To of we you top-notch down XXX as last heads shift to less people for year a OpEx working end business. is little nearly the XX% absolutely than we to were folks take XX% Lightspeed, of

coming with great working travel, with OpEx marketing MDA regulatory activities and on, from as services, revenue-related other well all tied professional of Lightspeed. and It's our progress of full costs and implementation higher we're as the commercialization suppliers. IT, increase is Lightspeed rest and to The the making development, costs associated

with purchase milestone will review the we for services our to the great tools use with other as requirements. toward making our traffic manage We've design to developing review are. We're partners, on are third preliminary dynamically users' the Lightspeed and the their we the staff manage requirements network interfaces this software the and and in need major MDA customers APIs progressing just progress ramping They're also year. system quarter up and completed of

services bring good for as for well short, to necessary various taking strides network moving users mobile potential all is the with we're suppliers operators, approach with into there's key work on community out world. for We're on the also around great really service. In and the Lightspeed offering, verticals terminals vertical world with satellite Lightspeed for operators, user and landing their be also The leverage making governments of LEO interest partners customer providers we're stations. and in suppliers our the the as service streams and fast focused antenna each to enthusiastic telcos, with needs around the strategic every we'll we're

enterprise, get is aero, to path maritime they they paths For the the in transition best to for and looking government industry, behind. underway services everyone that's for that or all ensure don't left LEO and recognize our actively

this our from services now, in of shortly XXXX, by thereafter first end on the beta investing X June into billion CAD Lightspeed Our We more and has providing than offering year. global and years coverage CapEx guidance for focused launching satellites roughly year us remain full X XXXX. this service slightly

funding. Let me quick a give on update now Lightspeed

extensive we've reached that engagement funding after terms and expect of we're months, release the We with past to over point. an for markets terms today. of the very Canada summary shortly, Lightspeed. a government this funding believe likely we've to closed Over pleased on detailed we've had those understanding say reached Suffice

and in top X than of funding we've USD As our our billion we release, the on that earnings lower cost noted savings. in plan, USD prior estimate our million roughly borrowings CapEx that's XXX is of total

people anime program. the the ton that program. of strong of for throughout there Canada we've note of the also I'd Lightspeed the And object just support on Government are We're Canada very had a the government an grateful really note engaged from the government isn't their Telesat past hard and with years, to -- have to work commitment I just who with Canada, of and all us worked my colleagues closely and few hard and the I over want that appreciate

Telesat that that huge benefits from Canada development, that, whether I'd really it's that a the that. delivers I'd and that's job And Canada, creation, the the we the the huge creation, Lightspeed technology of that and digital come also program work note appreciate given benefits all say not the and there divide, government Lightspeed whether all are to bridging of surprise world, people recognize there job

sum, a and light as accelerate have and deal in our in we to year we investment very market. So efforts XXXX accomplished speed great bringing full a last

and technically bullish share. our in a our an LEO to for extraordinary that focused of shareholders. well commercially. deliver proposition customers industry value is our program, hugely as creation gain the and on priority To end, for on as highest our ascendancy execution market prospects Lightspeed ability the transition as undergoing and market value both is We're Our networks significant significant

over I'll hand questions any look With Andrew and to forward addressing that, to may have. then you

Andrew Browne

everyone. the year with million you, sheet I this filings. morning, and now with year-end. cash $XXX Thank highlights Good EBITDA million, Dan. operations of of reported at morning's $XXX balance generated ended adjusted on Telesat focus $X.X on cash $XXX release of revenues to from million, press billion from of XXXX the would and like

In $XX the guidance. XXXX As generated $XXX adjusted revenues Telesat million mentioned, we our quarter Dan of outperformed million. $XXX adjusted of XXXX, EBITDA from million, cash has of operations of EBITDA fourth and reported

compared quarter fourth decreased in of the XXXX, revenues period the by million $XXX to For million. $XX and XXXX same to

to decreased to million foreign adjusted compared decreased by Operating When to XX.X% XX.X% in by rates, expenses $XX.X was exchange $XX.X decreased million. XXX.X $XX.X million. XXXX. million, revenues EBITDA The adjusted EBITDA GBP by and $XX billion for as adjusted margin in changes

the XXXX, $XX.X an which primarily repeated XXXX of a renewal decrease revenue to rate a by the DARPA, long-term $XX.X equipment with Operating to of reduction for in and decreased expenses a the sale and customer. million not was North on EBITDA The completion million. adjusted decreased in quarter due agreement through by American was

same and B and increase is noncash during repurchase The Term decrease was quarter to lower the the the just to primarily notes the offset in related U.S. Term expense $X compensation interest operating was period sales I in rates by of an B partially to program, This higher million by as to in decrease The Loan compared Loan decreased share-based XXXX Interest in in facility. XXXX. due the due mentioned. expenses DARPA XXXX. of equipment fourth when

spot of as of to the foreign December gain favorable debt. quarter, on of of September December In spot impact XX, XX, mainly translation 'XX, the a compared The of the rate compared quarter gain Canadian recorded result the the XX, a of of we U.S. gain as $XX resulting was million dollar $XX on in dollar 'XX X XXXX. exchange as ended weaker to months our a and fourth the for million to fourth rate U.S.-denominated the

income net period $XX same net to of was the compared $XX Our million for the in the for million prior income year. quarter

X. foreign and income in was This year debt. quarter loss for impairment to year. million prior the of was partially gain of net for second $XXX the offset quarter C-band million XXXX, proceeds the ended combined variation exchange clearing $XXX on the of million with positive of our U.S. an recognized conversion the of The the the the $XX dollar was December $XX.X debt, compared a due XX by a repurchase Our booking the gain million and of of in principally

For from from the clearing, year proceeds II million, ended generated inflows were were partially was investing the the from XXst the million, to activities mentioned that, received C-band due operating of by activities generated capital cash the activities cash offset from flows $XXX cash by expenditures. the investing Phase as December, flows the and $XXX

In terms satellite. FX lower and of constellation to Telesat Anik CapEx incurred, the was primarily related a it newly acquired

guidance. to Turning

will $X.XX. have in rate we dollar earnings preliminary Canadian dollar of you assumes morning, our provided As also guidance This to XXXX release noted U.S. the guidance. this exchange

transparency is also a mentioned, and this both able reporting where we as break businesses really GEO appreciate understanding on business to our we forward basis, to as will will forward. Lightspeed out Dan go develop. our to provide will that And everybody be As look and we segmented

specifically, million million. $XXX be its $XXX to full revenues between to expects Turning Telesat of 'XX, year

million point a And that operating of to this mentioned, expenses, as out an million $XX share-based we $XX attributed comp, have to range highlights of terms excluding Telesat $XX increase Lightspeed. in million represents we would And to of also, like year-on-year.

EBITDA, of to million. between expects million $XXX Telesat be In to adjusted terms $XXX

is billion anticipate in Telesat activities. Turning related $X.X used to practically respect which this to range to of be investing expenditures CapEx billion, in to a $X all Lightspeed. to for XXXX capital We in

fees declines of and IT outlook in financial drivers in business, consulting. is to the highlighted GEO we're has of a Lightspeed, professional I to as are fundamentally the related headcount increase revenue The we expenses the systems, also indeed marketing, discussed, terms that drivers XXXX expecting OpEx that Dan operating as and had at our mentioned.

was Approximately billion held of the Turning including To expenditures, subsidiaries. have in payments as borrowings short-term cash for interest in of investments and December cash next requirements our of expected we available as approximately XX facility. $X.X and billion to well USD the end our our credit cash. capital $X.XX XXX months, under approximately million revolving meet cash at unrestricted

significant In from generate ongoing addition, activities. we operating to continue of cash amount our

total quarter, the including of Further, Telesat outstanding our end covenants as the made all been ongoing of leverage ratio, complied million senior terms credit program, amended has the repurchase term reduced the credit in in B overall combined indentures. the approximately and of calculated facilities X.XXx. secured approximately fourth was with loan under XXXX $XXX the our agreement by we of XX%. repayment has debt our with the At

we've million total at of recap, date $XXX.X a XXX repurchased to a cost million. Just an amount aggregate USD of

In addition, also financial morning. is resulted report financial we filed XX EUR our statements this of per between and savings the this covenant in A year interest reconciliation provided around calculations million. in

minor the Our MD&A subsidiaries unaudited information XX-F shown consolidated the financial differences. provides It's are non-guarantor the interim the in essentially subsidiaries. unrestricted condensed

happy remarks the have. Thank questions turn our concludes you much. that to now very very and think may I operator to address yes, I'm for any the to call. back you So prepared

Operator

The from question from first Quilty Instructions] [Operator Quilty Chris is Space.

Christopher Quilty

that getting years. long stub over done. been It's on trip financing a Congratulations the

somebody I And decipher. remind can't mean, what in rates. I stated was position had debt last you the of us terms publicly you can

$X was correct? around I billion, think it

Daniel Goldberg

yes, that's would be number. a about U.S. Yes. Chris, That right.

-- I Andrew, go well, we've said think ahead. is what

Andrew Browne

I'll go ahead. Yes,

equity presentations, In -- of Overall, from anyone and we just roadshow our we of Toronto New and fact, terms our and Page but XX had out small sources investor website, York meeting billion. on a November $X.X we the have uses, in in did for to a that of Telesat kind

roughly give quick our is, $XXX And million of are million. that. $X.X tender to on within billion of expenditures million. of operational $X.X we just a Overall, off to for billion, your XX% of financing And just $XXX you had I'll is round included about contained $XXX on overall -- program terms also the question we funding, satellites contingency refresher itself. spending. which our had in Government

Christopher Quilty

great. That's

forward So focus you're kind the obviously markets. think, understand vision seen us market of jumped has you a the put been Starlink it, -- and the I market? congratulations enterprise the can market, a up enterprise haven't really And trying adjacent help them you all the and you brings system? on do but other hurting over on that I target have differentiation traditional versus to maritime the with here But at -- Starlink question what of

Daniel Goldberg

thanks. Chris, Well, Yes.

in say we're corporate this them make yes, When aero, having So let's point. far They're in seeing looks maybe enterprise, of traction them certain everywhere. But we had like they've you definitely We in aero maritime. Maritime so to on see, we're-- requirements but backhaul they're impact but an networks. working kind them. for greater inroads than seeing enterprise, hard less see it in at are

the satellites, now customers that on, So verticals which high those that's of and it's low said remarks, are for But connectivity where our lot seeing good affordable, verticals. throughput, focused differentiated product them. we we're latency, in And a our resilient SpaceX and is enterprise by launched want product. a has we're

mobile talked of service things which few and They then the unlike network maritime, customers bandwidth their the kind it's got manage, as ability they our a service, consumer-grade can make CIR, about oversubscribe focused things, of different a have give key things own operators, of corporates, commitments governments, a telcos, X to they do So pools, principally service -- tiers. to them customers I'd can that's aero, we've we ability a our dedicated bunch around can that we the it. give say with offer do,

their earth. some bits the across be them for around their They move of can entire which network, could

gives bits, over massive their it network. their control over massive flexibility, the So

of think also standpoint, a the that's I we're I say capital big investor from customer know, I from part is -- So the don't standpoint, differentiation efficient. very what the I'd doing, think,

years. and We're high-performing terabits able satellites thousands this of hundreds capacity satellites, to north that cover the terabits satellites XX not of world last with very of and of with

to need opportunity of us capital. our on invested earn that So returns gives long the a to kind we

around say fast to So I think here event disruptive. in don't SpaceX least. look, and again, the everything is get and right -- We any being moving

the that customers. powerful saw definitely our we from But for is a what enterprise GEO LEO and proposition value to coming transition

as The in we've no I'd they're and entire customers is moving, good any basket. say put say So It's huge. want as going that. this as been But one's SpaceX market as fast. enterprise I'd to of own eggs all like over for their fast X is market. they never all growing particularly to

excited you to and on investments up fast can. as just any in And focused we're morning, as making event, get there we're we as as to my as And moving get so picked super fast can. remarks out we get probably in big this there

Christopher Quilty

Great.

clearly over in the Eutelsat So is has important web them of a years. the listening I find pretty your ahead of me you after -- call, NDA more terms myself next filing? couple gateway tall task ask which But are to where here of the question,

Daniel Goldberg

kind In -- so are terms of U.S. focused? you of

Christopher Quilty

deployment, mean, I operational get constellation it's had mean, couldn't installed to the I up no. Well, and global when gateways one's due regulation. for their not fully they because still their

Daniel Goldberg

Yes, tracked that yes. yes, No, I've too. all

here's this we've things So time. for few working gateways. better a or about for worse, a say I'd on been long One, what

like. world with be landing we've XX stations the connected at a identified. starting We're around will and So minimum, off all the up

more then with flexibility landing customer given country, then given scale some bespoke have stations from the of well landing we'll of advanced any And ours can has. kind infrastructure of we our there. system like in as an station any And for sort that

about is the maybe links note optical inter-satellite like got we've our I'd OneWeb thing other constellation. on The on Lightspeed,

fewer need all that and traffic coverage you to and of the network to probably don't able in you is and order need still to sure make to satellites mind connectivity have kind of so global contribute. around your And opportunity XX/X are manage that and on -- what gateways full means probably,

stations need -- where So yes, go. to managed identified we've the we

be there. good shape we'll think in I

Christopher Quilty

you be in cross interested like? Would buying Starlink a optical

Daniel Goldberg

what probably -- like building any an allow us theoretically question, had conversations interconnect it's they're that. pros cons know we and mean, are. is haven't about doing There with it than and Pros of them, constellation, to lots are although SpaceX you I share with we You interesting that. being of something lower their that I'll with Starlink and flying would

probably than That guys the have compliant. SDA do into There like. interconnect rather be that would Starlink optical good So the of something with and take providers link heritage with sure would consideration. link where there those that I'm is that optical RF in not number OISL, we'd to are optical. a out we inter-satellite

So anyway, on stay tuned that.

next a us of Elyria our constellation. of on announced with about announced the of many MDA including good level the the we supply with and orchestrate going software We've pick chain kind and working network. component MDA of suppliers, more will learn to maybe the work that different that's We folks as And SpaceX. some parts

Christopher Quilty

X-year Final multiyear Great. contract? or that was question. a a MMcf,

Daniel Goldberg

X... Mimiq

Christopher Quilty

for Ending renewa. up

Daniel Goldberg

it's yes, coming up Yes, for renewals.

We've a it, was about been EchoStar agreement XX-year but of hasn't October this it renewed it up started So year. with having conversations yet. that in comes

on stay that. So tuned

Operator

Mr. Paribas. question And from Arun BNP the is next from Seshadri

Arun Seshadri

service certain this to the in from word I conditions. program me, to your funding global First conditionality, noticed like delivery subject funded

of kind would what you conditions If be helpful. those outline are,

$XXX how and you reduction government cheaper itself, million, understand there. of today. and Canada from Can so $XXX tell we then the strong calculate separately, us that funding support around being puts million of you And the the clearly takes the just sort on plan

Daniel Goldberg

what some that, to and talk maybe do about of want I'll start you Andrew, conditionality. the then with

Andrew Browne

Yes, yes, absolutely.

the lot to premiums. not know, And with are And of with credit agencies. initially As lot fees, fees that say agencies the were necessarily they I of we a dealing export right? have a have dealing of cheap, and export sort credit upfront you tales and

and when of you million so $XXX have that cheaper. math, out that equation. we the the And falls the it arrangements calculate the Canadian government It's do come with just basically, you

Daniel Goldberg

to definitely for And be over the sitting mean, to is here, Counsel I I've table me my me. General on got conditionality. careful across so

the say I make would doesn't rate. So what my that conditionality on GCI

the it's got say definitive program. other that agreements. conditionality funding typical stuff to the sufficient with X the any agreement, multiple the there. funding funding So in is fund sources. And of I into make -- it's have We've kind sure guess aggregate, cash and I'd needs right? source we that to got Each fully

it's So of it's -- kind stuff. that

people see, action we've entering by our we're why I'm believer these money words, all can these louder that's in referenced forward, a in we all our you But lease big tight speaking is confident move the kept which share and contracts. financing on spending As when we than that we've hiring place to a into we're got and it, this legal department. need project all

And like. need to just get careful to so be the definitive place and agreements it was still those yes, to in mostly just say, we

Andrew Browne

$XXX And contingency I just that think we we've further, I add as program. within would got also million the would mentioned,

Arun Seshadri

Got it. That's helpful.

On the original -- plan, the the $XXX reduction. million

-- the is cheap. obviously, So by? time $XXX disclosure that's of debt the of a just understand, of total lower over can to period that the it's Like those are of assumptions necessarily just you over advance tonight? that going I the come that out in certain share agencies -- cost not the million, kind assumptions in just that in export Andrew, But that terms

Daniel Goldberg

the plan another CapEx took new other we've take of one, And vendor. like now. yes, mean total at were borrowings what I'll one. under the fundamentally, program and versus the we total everything Andrew. into original cost that took of original stared costs account And the were it I what account. is our what We with into

like for relevant into export the took over expected what the the borrowings funding and agencies cost premium the cost what any be will compare be other, are rate approach. of improved call then that, I'll what So that of we We this our have pay. life the would account and increase to that to commitments, for right? credit borrowings we of our our stuff new And expectations and is

around what the course kind own it's will near of of And savings make funding the we through. will provide about expectation our terms did our cost it not yes, folks that some additional calculations gone that And my a big of allow the risk $XXX we've and over process the are details borrowings to term program. in million that's their

Arun Seshadri

Understood. bell a can the run broadcast bit for about maybe -- separately, rate a like the still Got then we and EchoStar talk have revenue. little broadcast it. is little would It adjusting And from lower you seems for bit than expected. even revenue

you color much And could additional If give OpEx then also, how GEO guidance? are reductions there? in any embedded in EBITDA your

Daniel Goldberg

let first I'll take I'll the one. Andrew second one. with start the

expected we last I said -- X and renewal overwhelmingly Mimiq that for October. yes, the sorry, So in straight. secured which in by driven X. my with Mimiq thing mean Mimiq that's just my keeping Bell remarks, was With opening already the . Yes, decline video X happened,

had significantly with was we significant time, of at last year, So this it but the close year. rate rate said run months we lower impact the agreed X for And a full nearly we we number Bell -- it that lower got of renewal. rate to impact that for that

that's biggest the year. contributor the So this expected broadcast in decline to

there's And then Echo.

started just Echo. we've conversations So with

is, a renew just matter accommodates end market, part anything expectation the given our with given we it all what's them with no going renew the to guidance of on But they Our in it. outcomes or of range we where got. what, they renew don't from of recent up renewals other they different

to over years. we've than going XX recognizing revenue Mimiq it's from DISH materially scenario, past the less been any what under expecting be on are X We

projections So have highlighted. I've anyway take the -- that broadcast of it's But into the our account we we sort then together. put and when we that X other customers fundamentally,

Arun Seshadri

Lightspeed for on Last how Helpful. the . about on the expect the from, can funding. you OpEx with way you definitive it. that Any on you the the I when step you guess, mentioned be 'XX government -- getting much plan that and would guess, quantify today. I could less spending on you you for do thing docs do side, EBITDA is OpEx Canadian Got down me before than 'XX. kind of within think XXXX, And

Andrew Browne

indeed. I'll address of questions components some your

fixed are cost relating probably to has But in the gone gone Lightspeed approximately XX%. costs down well notwithstanding now in GEO our And XX%, to or fixed. XX% broader your at detail, we as then through looking about we're pretty of appreciate, in at the through approximately, down indeed fixed think increase compensation you from you costs or as say, in X% in people we've scale was out fact we and Lightspeed, plans I very OpEx. that are plans I'd the primarily the so, XX% our our that nonetheless, our that geo first coming it's our question so the fixed step And -- as when of coming And hire -- Dan and investments future. look scale in.

to if at is, $XXX million, if Lightspeed, for adjusted And guidance to said you million, but $XX $XXX XX% the that a to million then look a just what what $XX just added million EBITDA, EBITDA compare, adjusted take and to to you coming XX%. like back back our sort come margin of to actually guidance we we

very So our focused. costs are very,

line, be, may in our top had we're seeing Dan as terms of expectations not think XXXX, the for probably I now. we'll that reductions we said, As see

And guidance we in OpEx, specifically wouldn't right probably XXXX. any give now, for

So I variation questions. hope that's address kind of your your of

Operator

And comes from from Piecyk question Walter the next LightShed. Mr.

Unknown Analyst

This Walt. is Joe for

want kind something of versus just on $X a get end low You difference CapEx a what's that high right Is end between like hitting what's range? to there in range. billion coming the -- the sense factor the now? the of provide limiting I of

Daniel Goldberg

us. our mean, I suppliers money Well, need to get hit order in to milestones from

going they milestone, that we their aren't nominal a got to need we've But So if achieve. don't schedule hit pay they to them.

principally range the built around we've that. So

Unknown Analyst

think And Chris' then I about getting it was back to question -- enterprise.

they that little the -- contracts just LEO so forward. and renewal could down of up understand you these required into if having you that, part drill I customer were If going further were as a for solution

So there's going to be a nonrenewal.

So with much. kind that work comes down of that does guide how the

Daniel Goldberg

that was remarks that for contracts big Yes. cruise. start it, the been we the mean serving land. Joe. contributor a I said biggest lost Yes, I got it, was they coming that's and had Maritime, it opening have up my We've to market. around customers business renewal. of exactly chunk cruise in

didn't for biggest with that us. what And renew That's their it works. it so they And That's was was. contributor. again that contracts the exactly That's how account it was. -- what

Unknown Analyst

chance potentially commercial Okay. long or those are those is that you a say, then have Like you business something with contracts how on next could back. renewal Lightspeed win that is or in let's that's generally? And that the XXXX are when -- whenever XXXX be whatever, to the there horizon for,

Daniel Goldberg

Look, it's what's But They about customers X market. drop networks. add mean big we'll maybe bit there networks, say kind commitments, of years happening or pretty or the in are of that. to X some sophisticated medium-term maybe I something make I'd a Yes. quite the out it's fluid. have pretty like flexibility enterprise

are well Starlink service the they don't suffice did with we're I month-to-month them, with visibility It's and some what customers, something have the oftentimes working kind I in of But I on a lines had full whether that almost they've aware to customers. that committed say exactly to providers with cruise differently know. serve what the don't of signing that agreements with ways, has And of know long-term Starlink. practice cruise Lightspeed. not

like suppliers, to as diversity we a concentrate key the lines. like shipping can what capacity They ability we to and on mentioned. our and I that at of ports flexibility They offer have and offer

But of kind go-forward hate we're out blocked basis. not the mean market any a So renewal. of yes, sure on yes, we're I I losing

Unknown Analyst

And last then my question.

in provincial funding, the provincial funding Is Quebec the the Canadian government. government -- government involved you process? On mentioned the still the

Daniel Goldberg

Yes.

gets to our I that in working from say that under initiative. program. commitments. I'd Quebec Quebec than plan the a about now with things made MDA more when be meaningful Quebec investment the amount expectation is certain funding ever great this we're participant Lightspeed original agreed of had Our to Quebec funding going in be is will think when which

yes, Quebec contractor Now up, -- our that dramatically. gone is in amount the say, MDA has prime I'd investment of

X So expectation -- will of part our funding is our yes, be Quebec sources.

Operator

Morgan. is next the Pace Mike And JP question Mr. from from

Michael Pace

the total of between color I you I the to the broadcast guess said X that that renewals. segments. dig in down I on thank type expect And added Dan, guidance understand you And a of a for bit. little same because don't basis 'XX. declines the guess you just the on

decline get you expect your same business risk in this -- think of of do much is -- from And you another at past, discussed kind Enterprise continue would maybe But way the to is to for think including your to we I enterprise at rate? enterprise that real alternatives, eventually? how and it own an at

Daniel Goldberg

guidance, were -- a question. I'm not would morning our long-term smiling That's great it. had this anticipated we for we've great Still for have We we we gave What a got because obviously, say, this a sure answer question. plan. look, I XXXX.

about decent a the It's of what have probably X nice in amount of be. We decent things visibility our performance visibility. will sector, amount of a terms our of longer-term

I don't think. -- at decent But track exactly got record, least get it You right. a we've --

isn't expectation, line companies, that a magnitude we most to this we've why for able to future real the pretty not having were it's of a expectation looking of super that, year. a done XXXX. beyond is had that years which that kind in grounds-up I'd decline say, is our it rigorous done analysis. done to top it this out We've And morning have say going we've we're our analysis So say

percentage more better for Starlink you little vulnerable do your substantive to to cannibalizing a question think, work, I more guidance revenue used need speed like over to know, light our many give time. instance, that own said. we to we We answer what our our don't migrate of some we revenue, forgotten maybe or to things, or would even anticipated word are about lack of the even about And enterprise I total bit a revenue to where over give

John, we want was to estimated said. say it I we migratable I'm But what our time. -- that had you be around Lightspeed XX% sorry, do of would revenues had remember over enterprise we to XX% thought

said. we what that's think I

Unknown Executive

that zone. are that to some things in serve. was There it better for just suitable believe I aren't

Daniel Goldberg

kind the Was that date of before. estimate we

vulnerable no, more that that be already, business a we've for competition be in to -- probably but again, move would I off light would little at book many ago, a of ways, so move we similar that Lightspeed, it'd speed but could to And while seen say said Starlink, not and large. LEO some

probably a I enterprise business it, risk. a of users I it's the of said, I prop other order kind that's again a constellations. that do long we that's than at but And is of Mike. for better book on But LEO don't little to the value think as answer, more Lightspeed know, winded need work magnitude, bit

looking light And projections including clear, about kind and the forward lose who to mean we move are my there assume to our speeds before I'm available, requirements colleagues, of we be additional sure long-term I'm we updating say plan. there that's which is -- in how that of is that sure it. LEO to I do the work at that thought

think So we've captured yes, I that.

Michael Pace

sure Okay. just I A to I quicker on my they few be more can and want understand. end. make

of OpEx, group back GEO the take I guidance for terms the in 'XX your that if consolidated EBITDA is business and the So Lightspeed restricted or EBITDA? add I basically

Andrew Browne

Absolutely, Yes. Yes. Correct. yes, Mike.

Michael Pace

then And OpEx Lightspeed in please? what Okay. you the XXXX, can was share

Andrew Browne

was it CAD million to just XXXX, CAD XX million. precise. In under XX approximately be

Daniel Goldberg

Canadian.

Andrew Browne

Yes, Canadian.

Michael Pace

And And then not did fourth the you got anything I the Can quarter. repurchase of here, the you confirm the debt I end subsequent in math quarter? think that? to any

Andrew Browne

yes. correct, That's

Michael Pace

should from happen to to I restricted it million can not, you happened? that group? you basis? unrestricted expect group XXX still USD then investments GEO or call And Okay. a or If don't Has I RP when committed believe we basket. move that have that it's

Michael Bolitho

it -- has soon. that is fairly happened. It We not to expect would do

Operator

Ares. is Chermisqui question And Marcello from from the next

Marcello Chermisqui

is and on guidance. of about understanding a to My wanted enterprise I aerospace XX% ask maritime the sales. question represent

enterprise the sales. about So million XXXX of $XX

line So the in seems in way like that? down aerospace saying right about business it think be and lift. like with could the competition XXXX, to so it customer, cruise that Starlink Is XX% between what the you're

Daniel Goldberg

Holland, confirm. John's going to just

So let's see.

and our less forget a I little than enterprise roughly math looking total I the revenues. go. of aero that. the there as at you done bit So you haven't a revenue. percentage that our I'm that, what of sheet Yes, maritime half on has XX% but being of backward would kind of characterized

So the so again? question I'm sorry,

Marcello Chermisqui

Yes.

Is like right your seems maritime way guidance. aerospace that it the it. XX% to think in down So about is

Andrew Browne

that. be it roughly Yes, will

Daniel Goldberg

Yes, yes.

. You've done good math there, sounds like. it

Marcello Chermisqui

it. Appreciate

-- earlier that do there? Or about do think that XX% loss your you the more XX%. might than Starlink seems of it think incrementally comment that, segment So that like have more so a given potential there's much risk you not

Daniel Goldberg

about more how is more, would segment and incrementally less maybe That we think maritime have probably would it. aero

having all right probably -- yes, far. felt verticals think for impact what Starlink's now of the maritime so in biggest the I having we

Marcello Chermisqui

look decline XX% due Okay. contract seems you're $XX No, seems then like $XX mostly of And for million. a helpful. third total so about side, the quarter decline, renewal. that's X guiding the fourth the on like Mimiq broadcast I quarter versus revenue of Bell it to the XXXX, revenue decline at to the million likely from it If

that into imply million of $XX about XXXX So would baked decline numbers.

on. X X going bcause say, So months be assume think that's X, that of broadcast I X. there decline the seems remaining, stuff that you $XX might only other remaining, Is revenue X, it is like if Mimiq outside even million Mimiq how of

Daniel Goldberg

we there, is DISH. whether comes might right. early there that say the it big, too think as early And kind the mean, in up impact well. have renewal. some math I Then, October, There some X mentioned, Mimiq -- by of at in of it's the DISH, directionally contributor I around renewed just and partial anticipated been say, other just would with I all stuff as other it's gets or just mean, EchoStar. I to yes, I And your

And the beyond kind of have. that. parts provision of potentially So any And just could that then are yes, erosion that, component making it's that. we for yes, other so those

Marcello Chermisqui

the about that happened noticed something helpful. Mimiq mentioned this earlier then No, you that's And X in Okay. year. disclosures, I

your in correct So happens permanent case something more only it is X? November until what to lasts contingency insurance And Mimiq are the Bell plans with XXXX. that

Daniel Goldberg

take X... we'll the So insurance

Michael Bolitho

There's it's orbital of maneuver or at -- life. the X life end its is Mimiq the near

little it So value. has very book

very has is insurance expires insurance it little in XXXX. there November what So of

Daniel Goldberg

as kind then for And contingency of far Bell. as

X right and now, Mimiq X. they Mimiq So they use use

is highlight own everyone. Thank X. to sorry If highlighted it I do know. with using I'm It's We right got issue it anticipated for think -- the Mimiq X. that. Mimiq X ever thing is Mimiq to Dave. say the end we first you, Bell's in of expectation that makes didn't, it life that I'd X Mimiq its they're the My to and thing had

depth renewal, we'll X to some needed Mimiq with the there's we X look Mimiq use that, beyond where And see maybe and after it. land to EchoStar ability

those Bell how mean understand I that we work. And is certainly, of I'd about. say things the So networks are kind think they customer. sophisticated a the

Marcello Chermisqui

Really it. appreciate

that of X, Sorry, the XXXX just on guide? on you assuming Mimiq the revenue assumptions, are are scale no for you in

Daniel Goldberg

range say just I'd -- a we a guidance range accommodate of like gave can we that of outcomes. different

to that it go they how need guess it's partial channels do with early They've distributing to in get they My got So yes, of a about different just EchoStar. -- kinds accommodates them. all is say. so own work renewal terms with we the But to outcomes all of on too their side distribute.

with got long long, those they've known guys do so to time. work them. And We've for a

that and range some good away, guidance a it's with accommodates have But with different whole of them. We still range we a months outcomes developed relationship them. just

Marcello Chermisqui

there terms versus with size, And that are other that consistent does it satellites much of -- satellite, -- or significant satellites Or a you in mimic is represent like other revenue scale more have? of ones? pretty

Daniel Goldberg

say and rates, at Mimiqs, original X have first renewed say, the -- lower in lower ballpark. the at went if recognizing, you Mimiq years X of back than been Mimiq because the rates of on XX Mimiq X the Mimiq with they're and magnitude X should same Mimiq and back go But to Mimiq of X same and I'd kind if rates, order you and looked X original their Mimiq much of of on X, on Mimiq I kind rates life. rates the X,

Michael Bolitho

Okay.

We more. have X

We more brief have for . X time question.

Operator

from is question Gobi from Mr. last Joe the Sixth And Street.

Unknown Analyst

driving what that? than was coming Most there? been Or of there Were items in have the guess X quarter my any fourth I better on just in onetime performance, answered. questions expected. EBITDA

Andrew Browne

it's our as I forward. we timing Overall, in Lightspeed just going particularly of the expenditures, sort think of sort timing, of invest

the pretty control can you very OpEx we As tightly. probably tell,

soon And going so we accept we as of that's guidance. as the XXXX, program, our get all with in

main of . of of to kind So addition the the frugality I'd one business. we elements manage contributing in say that's the how

Unknown Analyst

just And it. then more. X Got

release of after be to just discussions were saying the detailed Are U.S. government advanced of in now to for last $X.X of government $XXX now clear, the that So that and billion you you quarter. funding you expect is funding whole secured million the as close?

Andrew Browne

we I -- in earnings USD about we it my noted reiterated that the don't have to in release, to had remarks XXX know $XXX by and to the expect what what I I terms reference to is of of relative savings, mean, plan USD billion addition of the And was. our X savings funding cost in original savings. million savings borrowings in our million

government that billion, The would as a there, far funding stay be Government amount of sources. $X.X our as partner then expect say, tuned. would And I'd Canada, of so meaningful we

earlier, of mentioned I We that expect be as Quebec, part that. also will

I just so would stay say And tuned.

long QX not We our call. near it's we expect financing. to do to in around Canada be then term some until And make of Government too the going the information available

be a Thank probably morning. of update you, as All well. everyone, bit to Well, we'll Jim. So thank you listen, joining there this for very an right. able provide much us

QX is corner. the call our mentioned, I of kind As around

you look forward with very much. to everyone we again Thank then. speaking So

Daniel Goldberg

you Thank very much.

Operator

participation. time. Please The conference lines now has this disconnect your you Thank your at Thank you. for ended.

Telesat (TSAT) 28 Mar 242023 Q4 Earnings call transcript