Telesat reported consolidated revenue of $138 million for the third quarter ended September 30, 2024, a decrease of 20.9% or $37 million compared to the same period in 2023. Adjusted EBITDA for the quarter was $96 million, down 27.5% or $37 million, resulting in an Adjusted EBITDA margin of 69.5%.
For the nine months ended September 30, 2024, cash inflows from operating activities were $64 million, with capital expenditures totaling $661 million, almost entirely related to Telesat Lightspeed. The company reported a net income of $68 million for the quarter, primarily due to a gain on foreign exchange, compared to a net loss of $4 million in the prior year.
A significant development highlighted was the conclusion of funding agreements for Telesat Lightspeed on September 13, 2024, securing $2.54 billion in loan financing from the Governments of Canada ($2.14 billion) and Quebec ($400 million). These loans carry an interest rate of 4.75% above CORRA with a 15-year maturity, and the governments will receive warrants to purchase 10% and 1.87% of Telesat LEO Inc., respectively, based on a US$3 billion equity valuation.
Telesat updated its 2024 guidance, expecting full-year revenues to be at the upper end of the $545 million to $565 million range. Consolidated Adjusted EBITDA is projected to be at or above the upper end of the $340 million to $360 million range, reflecting lower Lightspeed operating expenses of $65 million to $70 million. Capital expenditures for 2024 are anticipated to be in the range of $1 billion to $1.4 billion, nearly all for Lightspeed.
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