TSAT - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the conference call to report the first quarter 2024 financial results for Telesat.

Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of TeleFab. I would now like to turn the meeting over to Mr. Michael Bolitho, Director of Treasury and [indiscernible] Management. Please go ahead, Mr. Bolitho.

Michael Bolitho

on morning. period we on ending with SEC good report our Form and the the for March and you, This filed morning, quarterly X-K Thank plus. SEDAR XX, XXXX,

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

please no For with see to of a risks, Telesat's filed these assumes known and call over revise will the report or Telesat's to SEC. Telesat I Dan Officer. Executive now responsibility Chief the annual update updates statements. Goldberg, discussion forward-looking and President turn

Daniel Goldberg

to weeks tracking full as earlier, we're note need financing we have that quite really quickly Okay. this moving earnings we to morning, first guidance ago XXX Thanks, as year just released we all want given that X the an when understandings QX our numbers. My out Michael. on now satellites. we gave remarks I the for XXXX and our Lightspeed are short hosted for place we're in can just opening and we we Telesat call

is as X.X we CAD which report our XXX unfold for this billion throughout and much X entirely year. CAD pretty is guidance CapEx to USD Our you'll and billion that see year USD around billion, or between million X for the Lightspeed, results

questions. I'll speak open Andrew, to we'll more then to up and in over speak numbers who call the QX detail, hand I'll the and that, with to the Q to So -- will then

Andrew Browne

and press quarter and highlights cash at would Telesat the from of $XXX million end now consolidated of from cash. revenues adjusted of $XXX filings. everyone. In operations Thank you, this billion to like I of million fourth of Dan, focus EBITDA and with XXXX, million, of generated quarter reported $XX the $X.X morning, on release morning's good

XXXX, adjusted million, XXXX $XXX adjusted Operating compared revenues period compared in $XX by $XX to to by to EBITDA decreased by decreased the decreased quarter million in was and $XXX million, EBITDA same XX.X% XXXX. The $XX to margin to XX.X% as expenses fourth of million. million For million $X

the and lower to to primarily decrease rate and of due revenues on renewal quarter a North customer as government was customers agreement a equipment with in from sales services as mobility for lower the reduction lower and customers. revenue certain The American direct-to-home Latin American well a Canadian long-term

debt. Canadian the December translation 'XX the the and relative decrease expense the is on same quarter stronger U.S. of an $X period as due interest dollar in the Loan Looking compensation to of impact as to fourth The in U.S. capitalized as the compared engineering XX, interest rate rate at XXXX. in for unfavorable to months result million fourth spot exchange of XXXX. a we notes March resulting share-based ended a primarily loss March loan $XX prior spot dollar term OpEx. particularly foreign dollar quarter, Term compared OpEx expenses due U.S. in was increase on X reportage period. the primarily in was a mainly expense the compared quarter the when was The The offset decrease by XX, of to of facility loss million in of higher rates lower Interest the gain $XX XXXX, B at fourth -- 'XX, during to B. This and million of noncash to In the and by denominated the recorded XX, decreased total.

loss change to was on was $XX foreign prior the for same to metered. million the for fourth net Our the income The period the in $XX quarter net exchanges million year. loss compared primarily of due

$XX For XX, used by million and activities the the from the activities were $XX inflows cash were investing cash flows quarter ended million. March XXXX, operating

expenditures as our In XXXX release have capital have they primarily will terms noted to This or lower guidance. Canadian Lightspeed. Guidance, you of exchange Telesat we of earnings assumes were rate also this X.XX. a morning, incurred, in the dollar reaffirmed Constellation U.S. with dollar related our guidance to

XXXX, For be million Telesat revenues million. year the $XXX $XXX total still expects to full between and

the spend of expenses, looking still $XX compensation, million to In attributed share-based operating to between we are to terms Telesat $XX million excluding Lightspeed.

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

expected our next well nearly and for $X.XX million $X.X payments capital was related GEO is USD on revolving of the In we accordingly flows expected short-term our As respect call, and end our have which interest expected and billion in we the capital Lightspeed including in available as cash months, of cash note March we out to expect billion XXXX range of be to capital highlighted our activities expenditures, we have approximately last billion, cash Telesat approximately all investing XX X the billion to of showing has set leopathy of used held our of in borrowings investments statements. subsidiaries. process expenditures. To begin as and under our continue will to disclosed requirements financial Dan highlighted, expenditures, as at as last meet the $X.X of in cash we $X unrestricted XXX facility. Approximately credit to quarter,

X a and covenants as indentures. X.Xx our amount quarter, at operating In credit of complied of Leverage addition, all fourth facilities the end of from one. Telesat amended the ongoing on activities. the the ratio secured significant has agreement in we leverage the continue terms our senior total calculated was with cash to to generate credit

XXX.X of amount at the aggregate has cost million. completed was million active USD $XX.X with Telesat aggregate cumulative May amount of reported debt up quarter or in X, of we cost million Combined in end million. debt XXXX, debt the we principal In XXX.X of an subsequent terms 'XX, our where USD repurchase 'XX purchased with an of and exchange cumulative to to for now principal $XXX.X were repurchases, a

our Just about our X.X repurchases, $XXX the in million now of debt reduced combined billion. USD including has outstanding approximately being overall approximately or repayment the by with term of XX% XXXX been loan

this addition, calculations of and $XX is approximately reconciliation results In financial we interest filed in A also annually. statements provided morning. report the financial million between covenant savings in this

Our X-K provides consolidated NDA. information in the the subsidiaries essentially financial The are differences. of unaudited minor unrestricted interim shown condensed subsidiaries nonguarantor the

I'm think conclude very So you prepared may we with will that, to any remarks happy questions the answer for I call. have. that our

now We to back turn will operator. the

Operator

[Operator Instructions]

from the Scotiabank. first Edison is question Yu from

Unknown Analyst

ones. Maybe housekeeping just some

declining. how do you strong quarter benefits this onetime And the Were the cash flow, the the kind in of here? any it's On quite there trends think year? for the of despite EBITDA rest

Andrew Browne

No.

cash I high flows, underscores that we've margins the think our got. I think,

business, identified see margins are think of year, that's that Geo and the our will at look fact some but you that approximately things we underlying of great indeed, the I notwithstanding our XX%, drops business, we've our If the existing flow. this cash

Unknown Analyst

And consulting? obviously, -- take the GEO you've the then and the revenue Understood. breakdown LEO from the of year Real got rest -- to the good in for consulting the appreciate I contribution run LEO some and XQ Is rate of a side.

Daniel Goldberg

ability revenue. sort some business more at LEO think might service XXXX not in so. until we is then, of be of late going of this stage. up Up there U.S. part work It's don't not doing LEO's kind are Obviously, see and big I our before, incidental came with a meaningful until to some government we nature, on We're from NASA demonstrating features with some with in-orbit of sort I a about that and that stuff. that's we've other think we're to spacecraft. in the lumpy contract this have talked communicate

So top the important -- adjusted kind of yes, government be EBITDA relationship low doing with the capabilities but be U.S. not of a results line year. for user, too. to certainly for but of tightening to no It's thing margin or a us demonstrating the big it's kind and good driver going be to to our our it's stuff,

Operator

question Arun from next is The from Seshadri Benari.

Arun Seshadri

from a Just me. couple

I understand. First, wanted just to

is Like is structurally above shareholders. lenders So be and in going senior guess, equity the I their that shareholders? equity LEO take planning equity, exiting of Canada senior lenders of the so to right? above to ahead and Is government

Daniel Goldberg

mean of -- what CAD of loan, the government carries on So maybe disclosed Canada government that roughly terms the got to there It's is X Cora construction. of rate ago a I couple that during and picks reached weeks of It X.X a we the plus we things. terms announced a Canada, -- points. of what years. are, billion basis it's a XX XXX we

where of the of will sort we're unrestricted be the Canada and we're fundamentally the Quebec kind of Constellation in the group, in speed. of of with the be -- connection and So and the alone, the lender getting. It will our Lightspeed that vendor government alongside financing building secured government light senior it's and

is of X is billion kind equity value The XX% that's those equity warrants a as in project. kind of But of So are and of covering one. there warrants yes, the of number an project, part Canada USD struck XX the equity deal, getting an for -- Lightspeed of the feature. Lightspeed the at government

as trying So Telesat the responsive project Corporation. to shares your participation a the opposed to about It equity. anyway, in senior equity itself is of be I'm just Lightspeed of of form question kind to common

Arun Seshadri

that effectively, So was clear.

the would saying what through first effectively be Lightspeed equity and So gated it I you're preference on think equity flows equity that's residual of... that to is is then what

Daniel Goldberg

-- I about Yes. wouldn't wouldn't about preference. I first it think it as first think as

And the it alongside think if of would future, the that about Government equity warrants, be right exercised now, they of an owns XXX% Telesat. light participant in I of these Telesat speed. Canada

Arun Seshadri

Okay.

Then equity is. structurally senior So not equity it's you're then. whatever it's saying actually that alongside there

Daniel Goldberg

right. Yes, that's No. right. exactly that's

Arun Seshadri

-- to finish And financing, support i.e., the there also is flow the credit the I direction, would -- that then -- being like as specific -- them have it entire from mean, Telesat you as government I or there of is perspective, Canada's cash you either it sense any for anything make would financing? is off guess,

guess, order then the I that, that on you case, you -- solvency is speed financing. would light sure to in happens? side, Telesat I finish if latter from off make the the would separated -- to of requirements the manage would how Or sort they be guess And flip insist is that

Daniel Goldberg

the So mean unrestricted that that understands this to to in the Canada be -- how maybe group. everyone first I support going Telesat just used so I'll It's in money. cash government off, be going the this. Lightspeed is and unrestricted the us to group lending so start answering -- of borrowings is And

beyond we've mentioned sources again, government some our that be the to Canada, financing. the borrowings of so contribution and of own Government funding And Quebec billion equity vendor $X.X our going from is

in be activities. borrowings supported so And going or those and are secured secured to our Lightspeed by

by supported future, could, Lightspeed cash the government we, of so in it's set in different behind now, in of done, something be of could, so future, the that's could consent, kind yes, And government's the be being up. or Canada the flows yes. right others with how terms potentially But

been fundamentally, and I an Quebec, and financed contribution. pretty how mean, always clear our it's some fact our unrestricted that own think about and in financing we've the restricted of then again, are project and getting is group financed equity got Canada, financing Lightspeed I government And a group. being we've it's Government vendor sources meaningful

hope And we probably that's So should I helpful. move then on.

Arun Seshadri

Ye's.

very think I last been can restricted fully I one and And is, I that's the that thing, then made payment noticed yet. helpful. hasn't that ask

need expectation to -- that financing then all to from standpoint be that's once what put will made. a guess done, needs timing done the on to done I is on the requirements? are to would And of of you -- be I blow a that be there the other else guess any risk repayment things go Just

Daniel Goldberg

million... the $XXX payment, So restricted think I it's

Andrew Browne

a XXX the yes. million There's of million, general payment -- to made million restricted $XXX asset. be remaining under $XXX $XXX

Daniel Goldberg

that expect will we in done coming the And Yes. days? get

Andrew Browne

days. coming yes, Right.

Daniel Goldberg

in get then there. Yes, down funding But conclude lined of already highly sources and we're We those that time, at Quebec again, -- definitive beyond that that all got do we've kind that, the are of XXX and for the financing. started going up vendor we'll Government I've with need confident road described, to of to Canada, agreements the financing point satellites. this and we've

mean, So opportunities and that's, and move And this market, as we there as we quickly balance we've can forward bow that we we we going we're to I'd that hugely market to service that say, money on as quickly because in on so want the get can point that are we needs out said cash start in as to the in remarks, meaningful at I program as be come got are this our bullish spending in we're can. to the sheet But time. moving forward, final tied. our

Operator

question The next from is Quilty Space. Chris Quilty from

Christopher Quilty

X up, Quebec the you to vendor, the follow not of I'm something X Canada, next is to that hold months and Government it, to that going on time... of in to just but Dan, and the sort

Daniel Goldberg

Yes, we're the -- should and big you get Chris. the government No, Yes, which of we believe yes, are Canada, the hopefully a imagine, with yes, end done -- the government yes. lot Quebec, of the summer. can momentum contributors of Yes. we've in that before here. as And got

we're So about months. talking yes, the in coming

Christopher Quilty

Got you.

I So say you're ends summer to was talking... in [indiscernible] for assuming and the going October I'm

Daniel Goldberg

summer, which earlier, up a yes. hasn't ends Well, yet. bit I'm working really Anyway, an even little on Ottawa spring shown

yes. anyway, So

Christopher Quilty

Yes.

long-term to than lower the fair XX%, And was look slower X, climb? Andrew, these scale in deal, $X million billion? assume it QX of also a you're to but and year this CapEx X more to as a financing pay and Is the a I -- So out. the how just typically, large falls at of expecting. the in Or XX%, you in is year framework QX how assume it you type expect Just was sort timing? XX% it fair towards bit -- closed little probably of programs, CapEx I should general out we of obviously, $X.X longer, X mean, in year

Andrew Browne

Yes.

the I chain everything given think, of of and Chris, program that forward. on moving supply sort getting nature the

billion. billion that a I We our So number. year to -- solid in this guidance think that's think we $X.X $X

means of more of kind get we'll all suppliers upfront it And place. see payments in [indiscernible] we , by as so the

operational to that's the of milestones types more will contract way thereafter, years, different then best would X it. kind be slow So And probably I a X it through the Chris. the a of go the we characterize the and as next over milestones, of

Christopher Quilty

you is OpEx strips for question and is had one the getting expected that's whatever out -- the program. running you, through for given Great. And other Lightspeed Andrew. The the OpEx assuming that I'm capitalized. P&L

to the gets into capitalization? Telesat because part And grow capitalized, of as is what you during grow out it's flat see And the can the OpEx but... that you years? of everything a the do years, staying rolled construction give again, more and the in mean going it to goes Or -- I gets in that program? expect do out sense capitalized we as getting is

Andrew Browne

Yes.

uses, we to so in terms in a terms is bit So make clear of of the it sources spend and CapEx CapEx try the little third-party spend, with vendors.

you the So so is. whether not, outflow the it's funds of operational labor is uses outflow in capitalized or of see the what of can and funds purpose just the

are So regard, the in that costs there. capitalized

sort therefore, the stock, in the ramp In to up program we of of constant in effort, staffing of our terms get you amount of terms quite level. capitalized up, quick level build the relatively rapidly, and overall infrastructure understand. of state a we the

Christopher Quilty

million, able contracts in And luck roll down of as seen data some the resell? have in programmed the $XX about being you I question. to the of capacity? you you've that resell being of off, some data Another what of sort side mean predicted on have business side those

Daniel Goldberg

that. captured assume gave our Yes, it. has year for sure, have we resold the guidance will part And will least that there's question, I And back of kind capacity suspect of that come some Was to we all in another for that of at resell. we've inventory some about already Chris? your this the that assumptions there

Christopher Quilty

are general But you? is or how that. and the in question, that that and question. which your Lightspeed Intelsat But that SES, on regulators will No, what have the probably a elephant was it. transaction the ask thoughts done you it get before I with impacts was on -- you'll room difficult

Daniel Goldberg

each some those Yes. I first say, never know NN. But they I off, I'd they been had place announced were Intlosat was between -- of time there SES all mean, to Well, we come ago. that, then persuaded discussions taking those that yes, have And it. the confirmed was that end that both had that and both that conversations been discussions they and

that us, it's and Starlink changing to industry the landscape. themselves quickly. There some Viasat think, seen and a in that. little in industry framework in made all for are competitive that within say announcement, as industry, to believe wasn't the a response And is Eutelsat about and same be recently. I been which we've talking to with already this to is big that companies consolidation that they announcement Inmarsat in the they entrants now future, changing fits the a I I'd of Kiper,that kind did say think while, would it -- are big And and So these of we've this new organize surprise kind remain OneWeb transaction impact and we and the that

think -- already together, there's obviously, I versus should to in the us, combined don't profile been us Telesat. and each they've prospects think any competitive real them it's too against how like larger they'll for that going in individually. For of terms the don't competing each each We've meaningfully anything decades each And them be impact have but I different dramatically they're the in what larger of compete of Coming than we competing are. now. of Lightspeed against still, be market, the

that So more there to -- consolidation there'll future. the that happen in weren't yes. the but consolidation suspect last we as would All still place, could I not surprised. It the takes It's fewer consolidation be there say, be Certainly, with deal. industry. expectation are in fits our players more probably

don't I a how mean, actions anymore. it's think about thanwords that's louder speak we're and -- -- again, is I we anyway, vision that it. And So vision think even

that's process think as what industry of to all it's non-video, think something Lightspeed. I which users, is the we're place taking organized is transitioning There right real good we as particularly in GEO well watching time. off we for something it for for enterprise the think coming, of a reason, down transition we're that that and Leo. And saw say, in now of friends the that we our with

just on. So is right now, anyway, we're sure addressable focus bring our on is we the convinced well what to making that's focused where and market our market that Lightspeed execute

to light high So and the and and our deliver kind distributed resilient affordable, they're that of -- aero be customers in wanting enterprise customers, connected connectivity, seamlessly customers, maritime throughput, able low latency, government speed. we'll

Operator

The next from Ares question is Marcello from Management. Chermisqui

Marcello Chermisqui

a a CAD earlier you days. restricted question million said XXX making response will You in coming in be that to payment the

Given already entity that you LEO significant waiting so soon? summer, cash to such to a what have of the at and the the you finalize this terms are amount money until rush cash is a spend later transfer make once

Daniel Goldberg

Marcello, the thanks question. for

think the I off, first... our looking First at -- I'm

Andrew Browne

XXX XXX that's USD million million. It's -- USD

Daniel Goldberg

Yes.

by the million. XXX So forward I moving as to forward far we look, in And moving advance. be spending meaningful this then is with urgency, Lightspeed, year. USD And payment we're of amounts are going mean, Lightspeed as money

You've we one agreements, on Lightspeed sufficiently strategic high CapEx program. given. hand, completing heard those definitive confidence going of of will the guidance level advance conclude get hand have urgency that a other kind the the the with these of that In agreements. And we've to a on definitive

moving to year, chain CapEx with And and that spending about So out is like other when people, parts, we to going the we're our we're vendors, supply now be moving the contracting MDA ordering the here. and out. spigots this we've we're opening hiring that talk guided

-- that's plan. we'll the That's what that's be doing. So

Marcello Chermisqui

it's roll having on no on Like not year-end. revolver? are I That understand how may tested the I but today guidance, revolver today and know the you in do I gain of usage. But do at know discussions? that your Or I could compliance line with an of later not there's you credit, ratio you're you -- revolver I the think makes company compliance a leverage and understand this revolver? the since it's think think the like forward I thinking about fine year-end extension you're the impact based without revolving discussions And terms by sense. And regarding year. if in covenant, due your

Andrew Browne

we look cash. XX in we earlier we Yes, Marc, ago, our Okay. of once. business we we review GEO still generating a a a have that is revolver, business certainly And at years, terms in it's revolver that something have drawn that I about believe few generates our talked as minutes

Marcello Chermisqui

talk one between about Yes, much where I -- so last makes be? has just On utilization utilization? you what are think declined an it that totally versus sense. utilization, utilization you you interplay think you targeting just And do know question. to pricing your just is. there's utilization, transponder about when you sequentially. is like and like and then want where Or certain a like how Can about per

Daniel Goldberg

XXX% years and think remarketing decline right those to that the now of slope we kind that but varied has secure in utilization rate of -- in so did was maritime capacity. From the that highest ended renewals have industry in now XX%. sector the the some we've culprit has to at talked up but our utilization pressure concluded we've Starlink space the we pricing Yes. throughout is in where is like the not We the I not that, And Probably take have perspective, it as mean as there with to we Yes, and on I a there. fundamentally. maritime it. biggest the we with be. business where guide what's from about really going space can decline down now be -- No, target be the at I'll think that barely utilization, that meaningfully utilization will and still we'd it's was focused on on honest been that everyone we're tell, anyone had, has even in in around we're last driven the and -- probably there mostly of I'm to at the that this -- for downward years. that's lost you. over moved which call gets future, right been one still does, numbers QX, we that asset far particularly XX%. But quarter we what

we before probably world, So if X X the moderated. It's downward it living we're seeing still price had one were my region. looking we downward probably the were little And of pressure, where Right of in or again, in I'm steepest in pricing pressure. I'd moderate America. But up declines colleagues, now, a moderated. a downward started it ago, that significant were extent I'm noted say, really as had varies bit at pressure the speaking of seeing dramatically. probably it slope Africa, again, little is Latin bit. years but homogenous things picking we by And the to again, but not

-- anyway, and are well so mean, aligning -- in industry So like others. in so laws I but our supply look, the of demand

yes, maritime so And some in describe point. the at pressure. space. But utilization. has It's -- would of been decline in the There pricing this not for so what accounted what I that's mostly is sort but downward as extreme

Operator

Matt The Partners. from AB is Lapides from next question

Matthew Lapides

Are cruise what the most yacht on on about comments. you maritime type Are you of defection, seeing you're type they customers color global personal companies they they been up segment? shipping Any follow losing. suppose... near-time both customers are where the for the Can of to lines? Wanted you've talk maritime I can the provide large

Daniel Goldberg

had biggest Caribbean, particular, in cruise space. us in And amount probably just there. the of we capacity Yes, the been meaningful the has for a in

there's been like then that stuff there's maritime know, lion's and that, maybe erosion. don't but the accounts for cruised. been say And share probably the the transport margins, I'd on Caribbean. in the I losses, some driver So of has crews

Matthew Lapides

back really more of is it. it of to about kind years much get? I you is a can how you look mean if there now I'm Got gone? And few how of of that ago, is it come talk what business much

Daniel Goldberg

We've a staring that? that. to John. want at offer Yes. the ask you We've sorted do around any my hit. thoughts colleague, been I'll of lot John,

John Flaherty

past you this that's from to But maritime. right years, revenue decline had years, increases because to back not the some significant years the the probably year, that go time if half... we're half in go roughly we expecting back Yes, X past pretty X X roughly to

Daniel Goldberg

From where were.

John Flaherty

of over were years. where From we couple the past

Matthew Lapides

flow. it. I Canada's from it earlier the just LEO. just X, if would all stakeholders the the that definitive that share RIO. at flow Got X want then an or to nothing make talking There There with of doable? Does Or business, that now, And one you subsidiary? after were follow-up Degen would understand of Telesat in the rata Lightspeed and first in cash go the to we're if go ratably holders they position amongst dollar. contemplated up, ultimate their dollar the it's company would years shared lots that That's rapidly hope to flow to it cash it the is dollar is that excess subsidiary the equity about to debt pro share question of front, is and try in there holding helpful. cash the equity about NEO since servicing of everything get is the be terms up equity holders generating NEO excess of that in the documents between holders equity Corporation Telesat

Operator

from question from next Cormark Evan The Securities. is McLagan

Unknown Analyst

a couple Okay. questions. of Yes,

I of you with right, you said understand as long think to So the conclude government the expect correct? it I the defending to as agreements take that could that if summer. you the and Is end

Daniel Goldberg

Yes. with of the mean, Canada Again, I government we're here. Yes. dealing

a in terms would given the have by the of it what can't what is an realistic line. on the I close, blueprint we come and terms when our the the time think yes, summer that we have we having precise exactly that's to be are, So this momentum expectation done extensive that a too timing of about but end

Unknown Analyst

Okay.

the to even so Is have $X.X nonrestricted the though the set. cash that end until you you just can summer, what you spend billion because gives you you that spend to I agreements guess going of billion. not And to concluded in And all way may those confidence you're do have still that $X are? the

Daniel Goldberg

we'll Well, a is mean, how those given get got sources the as we've done great and conviction get the having agreements in to forward. And we've move money hand, us work sources that there us to done, before market. the I opportunity other these the our to these that that -- spend project want it and just lot then, definitive gives of the confidence got much with agreements we suppliers, funding all concluded with what going. definitive I funding said, good pricing see gives in a out got locked on of this We've

like Our add wanting we to this they as have customers their to quickly are as service If available can. now. it way, have available us them we'd

thing move move we're hands a knowing that around to pretty to confidence a funding on that funding of again, with on a we're so this and degree for that, as and process yes, that doesn't our and to through X of we decided months conviction got balance, need high have We seem be sources. forward sit these we're going waiting to about -- we lot going do, believe all land another right where we and or get So forward go the we X just to so we've to with speed. move

Unknown Analyst

Okay.

and might imagine And on the be majority and will that sales design that be so of vast correct? would everything, I spend satellite on

Daniel Goldberg

that be friends There'll be of forward. investing they going chain and user But payments. the The terminals the we'll move stations. to biggie cash other to There'll be landing their most will is, it's yes, giving CapEx towards this MDA launch need for on supply our at the some significant go portion some that them turn and satellites. year be stuff

Unknown Analyst

Right.

go all time MDA's that because though is contract MDA, so money And right? to going there,

Daniel Goldberg

I would meaningful a of I'd very say say portion of it, but it. all

Unknown Analyst

Okay.

my Starlink. up on you've offer you Maritime, think like Starlink kind you question SLAs. understanding some a offer -- it's It's that fact from you your of when just doesn't that have And then lost business any And Okay. SLA. I would the

So competitive wouldn't you give that a advantage?

Daniel Goldberg

think will. we it our Yes, But need to the deliver constellation we service.

that's we're for about the successful. we So prospects share to be order to project in why that that take bullish our market need

give will value and us of of provide manage an bandwidth Lightspeed allow a contracting that I our to to there customers a constellation are community good competitive to and from SLAs tremendous the us think number give amount the they that a be ability to enormous features present and the proposition customer autonomy the CIR us. advantage of will

of think yes, some But we features successful. of think that's our the will customers' of sure, we'll be Ecan, SLAs. things one to to important that's for allow And us them. I offering all subset those be

Operator

question next is from Vasco. Nolan from Alex The

Unknown Analyst

wasn't question of one was off able answered. My I queue. to take the

Operator

[Operator Instructions]

The next Walter Keck LightChad. question from is from

Walter Piecyk

if of you This sure the these will is this. kind that is make a but correct? to Canada, prior this with government constructing bed. to apologize I've kind this I put NDA of finalizing heard I redundant satellites agreements the question, want to of start Dan,

Daniel Goldberg

Correct.

Walter Piecyk

they of seen that Okay. verticals, -- the And go now them different airplanes then little what for of couldn't initially terms overall at they've many market, do more of doing, out peers your claiming least people and that in sure on there to that airplanes. got Maritime. I has bit expected some other know were they were into. been not a Starlink you've I'm gone

at constellation, look has you all? changed you LEO when as it curious, the now? Or approach kind market of your at construction opportunity Just for

Daniel Goldberg

a aero to those only that good folks that that and is infrastructure the competitive one demonstrating the real were listen, going LEO time. is on they years maritime the a business, so don't Telesat there advantage, But and penetrate having market what a you're have don't think, convinced love market some XXX% impact back. in I Starlink impact and validated having support took they're would whether big do that were I that on backhaul is And strategic and significant I direction market, love. right, And our services. it all. market. We I StarLink is, not architecture doubts we an about But believe the which at doubted the in was

our market so it's -- -- no, And our seeing me, it's for just intact. thesis, but yes, again, here everything. business plan, reinforced we're Yes,

doesn't address Our that to own talked everything about the is SLAs. many but pools of Starlink and give -- it way are doesn't so from requirements. They customers know We've ability everything the it that their pretty whatnot. these talked We've best a it services bandwidth provides want. about good LEO they taking now to service, everyone manage give and their

sorts large, of the Internet requirements supplier. of don't writ need, one kind their all of all their enterprise infrastructure, want everything connectivity, cloud or one. Number or it's whether to with do give So it doesn't whether number that users don't not. with enterprise put They customers satellite they it's two,

So opportunity they a huge there's Yes, want multiple providers. here.

to in light So causes we've speed this us we made that when Starling seen there's nothing assumptions that that question the various path. on got we ourselves

will requirements the why everything been advantage around XX-plus all LEO our thinking by validated capturing of the those anything, a we've last months. competitive have has of witnessed over opportunity immensity the and If

Walter Piecyk

see if ability up calls, sign things the send past about can that the hit. customers pre-reserve of you finalization of message once in to from -- point Understanding or we're the signing new right, constellation? I up construction, in might customers on releases indications of enough the started to -- having we capacity, press these enterprises to getting that we I enterprise are able a going new releases to existing you think issue occurred, to "Hey, or the And part ones some we that guys of some to capacity be On saying, finalized, those about start was financed or for to take that people for and some excuse that talked start seeing me, this. talked isn't that

Daniel Goldberg

Yes. We're listen, -- right. you're

this industry. calls one, think in I a like and small we're

to Telesat industry. anyone those this will when through or under with the So rest. whether they that was be will haven't to about already that been gets all If put rest ripple program, going supply any to proceed chain not this had doubts should put contract,

to about a right. coming be -- community I only X and satellite, is be coming. will rest weeks. we're the look, they it to days great think our I so sign away think should that And in launching that the customer Lightspeed put from But years first

we'll that customers commercial be the sorts But it of commitments still making are those in be to service of side, announce you -- different community imagine is audiences focused, can on And expectation we about we're to to reporting that service. advance own and that it's it closer able trying going I an backlog customer announcements make and with and will when excited colleagues the can track of able in Lightspeed. so to have all more we're those engaged focused away. we're be my And secure to very announcements. very being with expectation of isn't here they're that the all on in very still right far So now progress we're making. My

very is the all that, about So stay yes, tuned. very there we'll and we get. be focused on We're say I'd commitments that transparent

Walter Piecyk

If preliminary the for the they I approach can, EchoStar. just mean, time I the some on year, one you facing they're last Any of out? that, any which is, how renewal. thought on think, end that I Have particularly one had distress, financial discussions? might as play

Daniel Goldberg

expectation of is about that headwinds the NIC satellite. the they're use is we we and up which this renewal and exclusive in of Well, up, talked that user on that we're -- comes they coming have one facing year an it that satellite, our October, the

that year whether we on they're started last or that X we call their captures that we with that call, the about much all guidance get And had the we've this there. since about want weeks we EchoStar gave said we going it for last to to advanced of But renew not. the ago. just different outcomes haven't so had conversation our thoughts And sorts might

where me end it's so to And we'll not clear up.

going recognized time. the we scenario, post reduction still it. date amount a at October, NIMC renewal revenue of to in think meaningful clear of I none regardless or point in some from of whether see not that it, we're they but in this renew It's X all it to of us of the

We've EchoStar. to them and on that they're Mimic do they is that we've their that for pretty know to have used base. being distribute list. with We And X saving We content things years. know today of high worked got a lot that a subscriber great on relationship cash other with focused is

Yes, we we'll to all an had anyway, just say update weeks right from don't we update we once So have have one. X But that the now, that call ago. an give

Operator

go to ahead. At this you. Thank turn Please we back Mr. Goldberg. Walter. over will Thanks, the time, call

Daniel Goldberg

much, we look Okay. and Well, very you QX forward thank operator, for when joining to you thank our release you this we morning. everyone, with results. and chatting us

thank you a weekend. nice have all, So and

Andrew Browne

Thank you.

Operator

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

Telesat (TSAT) 10 May 242024 Q1 Earnings call transcript