The company said holders of about $3.8 billion of its debt supported the plan, which is subject to a Bankruptcy Court ruling that it expects in the second quarter of 2021. 12 that would slash its debt load by more than half to $7 billion. New orders for its land mobility managed services helped revenue for its government division climb 4% to $392.6 million, about 21% of total revenue. Government customers provided a boost for the Luxembourg and Virginia-based operator. The media business faces secular pressures that are reducing demand, including changing TV viewing habits and improving compression technology. Intelsat’s network services division contributed 35% of its total revenues.ĭespite new business from network operators, and the expansion of maritime mobility managed services, COVID-19 related contract renegotiations helped the division’s revenues fall 12% to $677.4 million for 2020, compared with 2019.Ī pandemic-driven decline in occasional use services, such as sporting events and concerts, helped drag media revenue down 8% over the period to $812.5 million, or 42% of total sales.
Our mobility customers were significantly impacted by the reduction in travel in both the maritime and aeronautical sectors, yet they renewed contracts and committed to new business with Intelsat.” “The strategic value of our global network and the services it provides to our customers was reaffirmed during the year. “The COVID-19 pandemic made 2020 a challenging year however, we are proud of our ability to maintain a high standard of operations and delivery of mission critical services to our customers,” Intelsat CEO Steve Spengler said. Intelsat could receive a cash windfall of around $4.9 billion if it meets accelerated regulatory deadlines for clearing the frequencies. Federal Communications Commission (FCC) auction.
The move also freed up funding to buy seven satellites to help clear C-band spectrum for terrestrial 5G networks in the U.S., in exchange for cash from a U.S. Intelsat filed for Chapter 11 bankruptcy protection in May 2020 to tackle a debt mountain of nearly $15 billion.
The company recorded $1.91 billion in 2020 revenue, compared with $2.06 billion for 2019, as COVID-19 hammered mobility and other markets.Īdjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, fell to $1.28 billion compared with $1.48 billion the previous year. Intelsat reported a 7% drop in revenue for 2020 after declines in multiple business units, underlining the importance of C-band clearing proceeds for the satellite operator’s recovery efforts.
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