Intelsat S.A. (I) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $662.82 million, or $ 5.56 a share in the quarter, against a net loss of $4,116.31 million, or $38.29 a share in the last year period. Revenue during the quarter dropped 3.60 percent to $550.69 million from $571.26 million in the previous year period. Gross margin for the quarter contracted 86 basis points over the previous year period to 84.24 percent.
Operating income for the quarter was $233.70 million, compared with an operating loss of $3,897.12 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $417.39 million compared with $452.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 342 basis points in the quarter to 75.79 percent from 79.21 percent in the last year period.
"Our fourth quarter financial results, $551 million in revenue and $417 million in Adjusted EBITDA, demonstrate the increasing stability in our business as we executed on our initiatives to drive growth," said Stephen Spengler, chief executive officer, Intelsat. "For the full-year, our revenue and Adjusted EBITDA performance fell favorably within our guidance range, demonstrating the visibility and sustainability of our business. Our objective for 2017 is to build on this foundation as we work to transform our business, as the era of high performance satellites unlocks new and faster growing opportunities. Our Intelsat EpicNG high-throughput footprint now provides services to five continents, overlaying our Globalized Network with high performance, better economics and simplified access to satellite solutions."
For financial year 2017, Intelsat S.A. projects revenue to be in the range of $2,180 million to $2,225 million.
Operating cash flow declines
Intelsat S.A. has generated cash of $683.51 million from operating activities during the year, down 24.89 percent or $226.52 million, when compared with the last year. The company has spent $730.59 million cash to meet investing activities during the year as against cash outgo of $749.35 million in the last year.
Cash flow from financing activities was $541.60 million for the year as against cash outgo of $102.99 million in the last year period.
Cash and cash equivalents stood at $666.02 million as on Dec. 31, 2016, up 288.26 percent or $494.48 million from $171.54 million on Dec. 31, 2015.
Debt comes down marginally
Intelsat S.A. has recorded a decline in total debt over the last one year. It stood at $14,198.08 million as on Dec. 31, 2016, down 2.83 percent or $413.30 million from $14,611.38 million on Dec. 31, 2015. Intelsat has recorded a decline in long-term debt over the last one year. It stood at $14,198.08 million as on Dec. 31, 2016, down 2.83 percent or $413.30 million from $14,611.38 million on Dec. 31, 2015.
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