Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| As Dan had said, our business, our margins are so high, which means we generate very, very good amounts of cash and we will do going forward |
| We remain hugely bullish about Telesat Lightspeed and are looking forward to sharing more detailed information with investors about our business plan and expectations |
| I mean, the reality is enterprise users, like, the value proposition and the performance advantages that you get from low earth orbit satellite constellations, which is why we're so bullish around our Lightspeed constellation |
| And I have been really pleased, but not surprised, by the extraordinarily capable people we are bringing on board and the really strong interest we are seeing from professionals throughout the industry, to join us to work on this flagship program |
| Our federal and provincial partners in Canada have been strong and consistent supporters of the Lightspeed program, and we are grateful for that |
| And then it looks like, Telesat have reported better-than-expected gross margins for this quarter |
| C-band clearing proceeds, and completed some meaningful additional debt repurchased in the quarter that we think will strengthen our financial position and create value for shareholders |
| But those are the verticals that we expect to get really good traction in |
| A lot of what's Starling's doing right now is on the consumer side, and I think that they're getting good traction on the consumer side, but that's not an area that we're focusing on with Lightspeed or really that we focus on with our existing business |
| We are -- as we said at the outset of the call, making good progress, I think with the government partners, kind of federal and provincial to move the funding forward |
| We think that we have been able to get kind of an overall compelling case in terms of just the overall value proposition for the launch capacity that we have lined up |
| There's a huge amount of interest in Lightspeed and it's been gratifying to see that now that we've announced the program, I think that there will be things that is customer commitments that we'll be able to announce over the course of next year |
| SpaceX has been very constructive in terms of working with us to position, the timing of the rocket’s kind of, when we think we need them |
| They have been a great partner for Telesat on a number of our prior programs, and we are very pleased to be working with them on Lightspeed |
| And then indeed, as you see, we bought back 587,000,000 face value of bonds, which is pretty attractive and that's a good use of cash |
| And SpaceX has a demonstrated high launch cadence that will go a long way toward ensuring that, we bring Lightspeed to market, consistent with our schedule |
| Have you seen a meaningful pickup in competitive intensity just from their pivot into more of the enterprise use cases? Daniel Goldberg I'd say we see it mostly, at this point in time in the maritime space, they've been pretty successful in attracting some of the cruise line requirements and some of the other sort of maritime shipping requirements |
| We are fully-engaged with them at this time and remain optimistic that we will be able to reach financial close, consistent with the timeframe we shared previously, which is to say, later this year or early next year |
| What -- and look, we've been working on this for a long time, so things are, I'd say pretty well set in terms of what the program looks like |
| dollar exchange rate had a positive impact of $3 million on revenues, a negative impact of $1 million on operating expenses, and a positive impact of $2 million on adjusted EBITDA |
| It was a function of the good commercial terms that we have with SpaceX to provide those rockets, wanting the certainty in terms of our ability to expand the constellation over time and then having a constructive launch partner that allows us to line up those rockets, kind of consistent with what we are seeing in the market and our commercial plans |
| So, folks will have good visibility into that |
| We have been executing well so far this year, are on-track with the key financial, strategic, and operational objectives we have been focused on |
| Those are exactly the verticals that we have always expected Lightspeed to have a real competitive edge in |
| We have got a good relationship with SpaceX by committing to the number of launches that we did |
| In addition, this also results in interest savings of approximately $40 million annually |
| That's why historically, if you look at our SG&A is pretty well sort of flat and very well contained |
| There is some to do with sort of engineering people involved, but once we get going we're very excited to get going and hopefully that will be Q4 |
| And in terms of SG&A and OpEx, as you know, given our high margins, we really control that very, very closely |
| And just to add that indeed our margins are probably one of the highest in the industry and our previous comments around OpEx and CapEx investments in to LEO |
| Statement |
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| The revenue decrease for the quarter was mainly due to lower revenue from certain South American customers |
| And I think as a result we've always sort of had industry leading operating margins, but there are headwinds for the business |
| In the third quarter of 2023, compared to the same period in 2022, revenues decreased by $5 million to $175 million |
| Sadly, the converse is true as well when you're facing some of these revenue headwinds and you're facing revenue declines, you can't really reduce your cost structure kind of in a proportionate way |
| And we noted that there was some softness in Latin America |
| The loss of the three months ended September 30th, 2023 was mainly the result of a stronger U.S |
| If I back out the implied Q4 revenue from what you have done year-to-date, it looks like a pretty steep decline here |
| But anyway, those would be the things that have acted as a headwind and that I think, as I mentioned, will carry on in the next year, given the timing of the Bell renewal and alike |
| I think, the biggest softness that we had in LATAM over the quarter was one particular contract in Peru, if memory serves, it had been a long-standing contract of ours that came up for renewal |
| And so, there will be some kind of revenue headwinds as we head into 2024 and the beauty of a fixed cost business is when you're ramping revenues up you can grow your operating margins nicely |
| dollar to Canadian dollar, which the resulting unfavorable impact on the cancellation of our U.S |
| Andrew Browne I'm trying to, I mean, and the decline was what, year-over-year, it is 4%, on the quarter |
| Operating expenses decreased by $6 million to $50 million and adjusted EBITDA decreased by $4 million to $133 million |
| There are risks that Telesat's actual results may differ materially from the results contemplated by the forward-looking statements as a result of known and unknown risks and uncertainties |
| And I know there is some noise in Q4 last year from some non-recurring equipment sales |
| But I'd say that the enterprise segment remains competitive and I'd say increasingly Starlink is featuring into that |
| When adjusted for changes in foreign exchange rates, revenues decreased by $8 million, operating expenses decreased by $7 million and adjusted EBITDA decreased by $7 million |
| Is the rest of the delta just the Bell Canada renewal, or is there anything else I am missing, or should I view this guidance as conservative at this point? It just looks like a pretty big step down even from the recent run rate |
| But it continues to be a competitive market in the enterprise segment, and we're certainly starting to see the impact of Starlink coming into the market |
| For a discussion of known risks, see Telesat's annual and quarterly reports filed with the SEC |
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