Intelsat announced financial results for the third quarter, which ended September 30, 2021. Total Q3 2021 revenue increased by $36.6 million to $526.1 million, a 7% increase compared to Q3 2020, primarily reflecting the consolidation of revenue from its commercial aviation business.
Intelsat CEO Stephen Spengler, said, “We delivered strong quarterly sequential results despite the secular headwinds impacting the satellite industry. Network Services benefited from the continued recovery in North American airline travel resulting in higher in-flight connectivity revenues. Media was impacted by a large planned service migration from the Intelsat network onto customer-owned assets coupled with the ongoing business trends. The start of hosted payload service on our Galaxy 30 satellite and continued demand for our FlexMove land mobility managed services created positive momentum for our Government business.”
Intelsat provides critical communications infrastructure to customers in the network services, media, and government sectors. Customers use their services for broadband connectivity to deliver fixed and mobile telecommunications, enterprise, video distribution and fixed and mobile government applications.
Network services revenue was $241.7 million (or 46% of Intelsat’s total revenue) for Q3 2021, an increase of 43% compared to last year. Factors positively impacting revenue include in-flight connectivity services and the expansion of services with mobility and network customers.
On the other hand, media revenue was $181.1 million (or 34% of Intelsat’s total revenue) for Q3 2021, while the government revenue was $95 million (or 18% of Intelsat’s total revenue) for Q3 2021.
The third-quarter net loss attributable to Intelsat was $145.7 million, with the Adjusted EBITDA recorded at $283.3 million or 54% of revenue. By end of Q3, a contracted backlog of $5.7 billion represents the expected future revenue under existing contracts with customers.
Spengler concluded, “Our team remains committed to delivering a superior customer experience while making critical investments to expand our ability to deliver mission-critical services. We remain focused on executing the C-band relocation to secure accelerated payments, maintaining a high standard of operational excellence, and transforming our business. Investment in our next-generation network, coupled with our unmatched scale and partnerships, will position us well to secure new business opportunities.”
Other net income was valued at $10.2 million for Q3 2021, as compared to $3.1 million for Q3 2020. The net increase in other income primarily consisted of a $7.3 million gain from the conversion of stock warrants into common shares of a newly merged public company, and $1.8 million related to an amendment fee for a loan receivable.