Telesat CEO sees opportunity in push for Canadian sovereignty in infrastructure

Telesat Corp. CEO Dan Goldberg sees opportunity for the satellite communications company to broaden its business in the push for greater Canadian sovereignty in this country’s connectivity infrastructure. Goldberg told financial analysts during a call on the company’s fourth quarter and annual results Thursday, March 27 that Telesat’s biggest developments in the past year were the loan deals it signed with the Canadian and Quebec governments in September for financing Telesat Lightspeed, its low Earth orbit (LEO) satellite network which is expected to launch in mid-2026. Goldberg is hoping for more recognition from governments to come. As United States President Donald Trump has launched a trade war against Canada and has repeatedly referred to the country as America’s “51st state,” Goldberg lasered in on the notion of greater defence spending and more Canadian firms being selected as suppliers for this country’s defence infrastructure. Citing “tectonic shifts” in the geopolitical environment, the CEO touted Telesat’s ability to bridge the digital divide in Canada by connecting more people to internet services and advance goals of Arctic sovereignty. Whether Conservative or Liberal, Goldberg said the leading parties in the ongoing federal election have been articulating their views around the need to have greater defence spending and more quickly achieve Canada’s NATO target of spending at least two per cent of the country’s GDP on defence. “We were always optimistic about how Telesat Lightspeed can deliver on all those sorts of objectives but it just seems so much more concrete now, so much more tangible,” Goldberg said. But the company faces competition from other LEO providers such as Space Exploration Technologies Corp.’s (SpaceX) Starlink for maritime and aeronautical service—service types which Goldberg said, when combined, accounted for about 10 per cent of the company’s total revenue. Telesat also expects to do less consulting and “demonstration projects” for “certain U.S. government agencies,” it said in its financial release document. Goldberg said the company has seen a big impact on its enterprise business, mostly in maritime service, because of Starlink. He said its aeronautical service is doing “OK” right now despite inroads Starlink has been making in competing. “There’s been some pressure there, but it feels like we’re seeing a good number of renewals and some new opportunities there. That market continues to grow quickly, the question is who’s going to capture it,” he said. READ MORE: - Starlink: Saviour of rural connectivity or threat to Canadian sovereignty? - Telesat, feds announce new Gatineau campus - Starlink should not be blocked from northern internet subsidy, parent company argues - Uncertainty over US tariffs persists for Canadian telecoms, broadcasters Telesat’s revenue, profits drop in 2024 Telesat reported consolidated revenue of $571 million for fiscal 2024, a drop of 19 per cent or $133 million compared to the previous year. It credited the change to rate and capacity reductions by direct-to-home customers combined with lower enterprise revenues from customers in the aero and maritime sectors, Latin America, and the Canadian and U.S. governments. It reported a net loss in income of $302 million compared to profit of $583 million the year prior. It said the difference was in part because of shifts in foreign exchange rates on the Canadian dollar value of its U.S. dollar denominated debt and reduced revenue. Adjusted EBITDA for the year (earnings before interest, taxes, depreciation, and amortization) was down 28 per cent to $384 million, plummeting by $150 million. The company’s operating expenses for the year were up two per cent or $3 million to $208 million from the year prior. As it works on building up its LEO team, Telesat said it spends more on wages and benefits, among other changes. On a quarterly basis, Telesat saw consolidated revenue of nearly $128 million for the fourth quarter ended Dec. 31, 2024. That is a drop of 23 per cent or $38 million compared to the same quarter the year prior. Its loss in income for the quarter was $447 million compared to profit of $39 million the year prior. Adjusted EBITDA was $73 million, down 40 per cent or $50 million. Telesat’s operating expenses for the quarter were $58 million, up $9 million or 17 per cent from the same period in 2023, mostly because of higher compensation costs for its LEO project, offset in part by higher capitalized engineering expenses. Looking to the remainder of fiscal 2025, Telesat expects to see revenues between $405 million and $425 million. It anticipates spending between $110 million and $120 million on its LEO operating expenses, up by between $38 million and $48 million from 2024. Its capital expenditures are expected to be between $900 million and $1.1 billion, “virtually all of which is related to Telesat Lightspeed.” Goldberg was joined on the call by CFO Andrew Browne, whose retirement was announced Thursday after five years at Telesat and more than 40 years in the computer chip and satellite communications industries. Goldberg thanked Browne for his time at the company and said Telesat will begin searching for his replacement. His last day of work was not specified. hdaley@thewirereport.ca

Telesat CEO sees opportunity in push for Canadian sovereignty in infrastructure

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By Hannah Daley
| March 27, 2025

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Telesat CEO sees opportunity in push for Canadian sovereignty in infrastructure

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