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TELESAT Telesat Reports Results for the Quarter and Six Months Ended June 30 , 2021 OTTAWA , CANADA , August 13 , 2021 - Telesat today announced its financial results for the three and six - month periods ended June 30 , 2021. All amounts are in Canadian dollars and reported under International Financial Reporting Standards ( " IFRS " ) unless otherwise noted . For the quarter ended June 30 , 2021 , Telesat reported consolidated revenue of $ 188 million , a decrease of 10 % ( $ 20 million ) compared to the same period in 2020. When adjusted for changes in foreign exchange rates , revenue declined 3 % ( $ 7 million ) compared to 2020 . Revenue decreases were primarily due to a slight reduction of service for one of Telesat's North American DTH customers , non - renewals of certain enterprise contracts , and lower consulting revenue . Operating expenses for the quarter were $ 57 million , an increase of $ 11 million from 2020 . When adjusted for changes in foreign exchange rates , operating expenses increased by $ 14 million from 2020. The increase in operating expenses was principally the result of a $ 16 million increase in non - cash share - based compensation combined with higher wages due to the hiring of additional employees primarily to support our Telesat Lightspeed program . These increases were partially offset by higher capitalized engineering and lower bad debt expense in the three months ended June 30 , 2021 . Adjusted EBITDA¹ was $ 149 million , a decrease of 10 % ( $ 16 million ) or , when adjusted for foreign exchange rates , a decrease of 3 % ( $ 5 million ) . The Adjusted EBITDA margin¹ for the second quarter of 2021 was 79.2 % , compared to 79.1 % in 2020 . For the quarter ended June 30 , 2021 , net income was $ 61 million , compared to net income of $ 162 million for 2020. The negative variation for the quarter was principally the result of lower non - cash foreign exchange gains in 2021 , arising from the translation of Telesat's U.S. dollar denominated debt into Canadian dollars and an increase in unusual / non - recurring items relating to share based compensation . For the six - month period ended June 30 , 2021 , Telesat reported consolidated revenue of $ 378 million , a decrease of 9 % ( $ 38 million ) or , when adjusted for foreign exchange rates , a decrease of 5 % ( $ 19 million ) compared to the same period in 2020. Revenue decreases were primarily due to a slight reduction of service for one of Telesat's North American DTH customers , decreases in the maritime and commercial aviation markets owing to the COVID pandemic as well as non - renewals from certain other customers in the enterprise segment , and lower consulting revenue . Operating expenses for the six - month period were $ 97 million , an increase of $ 6 million from 2020 or , when adjusted for foreign exchange rates , an increase of $ 9 million . The increase in operating expenses was principally the result of a $ 15 million increase in non - cash share - based compensation expense combined with higher wages due to the hiring of additional employees primarily to support our Telesat Lightspeed program . These were partially offset by the $ 10 million impact of a reversal of a bad debt provision in the first half of 2021 relating to certain maritime and aeronautical customers that was recorded during the six months ended June 30 , 2020 . 1