Profile: Loral Space & Communications Inc (LORL.OQ)
Loral Space & Communications Inc. (Loral) is a holding company. Loral is a satellite communications company engaged in satellite manufacturing with ownership interests in satellite-based communications services. The Company operates in two segments: Satellite Manufacturing and Satellite Services. The Company own 56% of XTAR, LLC (XTAR), a joint venture between Loral and Hisdesat Servicios Estrategicos, S.A. (Hisdesat). XTAR owns and operates an X-band satellite, XTAR-EUR. On April 11, 2011, Telesat acquired from Loral the Canadian payload on the ViaSat-1 satellite and a 15-year revenue contract with Xplornet Communications Inc. to make use of the payload.
The Company through Space Systems/Loral, Inc. (SS/L) designs and manufactures satellites, space systems and space system components for commercial and government customers whose applications include fixed satellite services (FSS), direct-to-home (DTH) broadcasting, mobile satellite services (MSS), broadband data distribution, wireless telephony, digital radio, digital mobile broadcasting, military communications, weather monitoring and air traffic management. In addition, SS/L produces spacecraft subsystems, such as batteries for the International Space Station, and to integrate government and other add-on missions on commercial satellites, which are referred to as hosted payloads. As of December 31, 2011, SS/L had backlog for 22 satellites for customers including, among others, Intelsat Global S.A., SES S.A., Telesat Holdings Inc., Hispasat, S.A., EchoStar Corporation, Sirius-XM Satellite Radio, TerreStar Networks, Inc., Asia Satellite Telecommunications Co. Ltd., Hughes Network Systems, LLC, Eutelsat/ictQatar, DIRECTV, SingTel Optus, Satelites Mexicanos, S.A. de C.V., Asia Broadcast Satellite and Telenor Satellite Broadcasting.
Loral participates in satellite services operations principally through its 64% interest in Telesat Holdings Inc. (Telesat Holdco), which owns Telesat Canada (Telesat), a global FSS provider, with backlog. Telesat owns and leases a satellite fleet that operates in geosynchronous earth orbit approximately 22,000 miles above the equator. As of December 31, 2011, Telesat had 12 in-orbit satellites and two satellites under construction, one of which is 100% leased to a customer. In addition, Telesat owns the Canadian Ka-band payload on the ViaSat-1 satellite which was launched in October 2011. Telesat provides video distribution and DTH video, as well as end-to-end communications services using both satellite and hybrid satellite-ground networks. Telesat earns the majority of its revenues by providing satellite-based services to customers, who use these services for their own communications requirements or to provide services to customers further down the distribution chain for video and data services.
Telesat also earns revenue by providing ground-based transmit and receive services, selling equipment, installing, managing and maintaining satellite networks, and providing consulting services in the field of satellite communications. Telesat categorizes its revenues into: Broadcast, Enterprise Services and Consulting & Other. Telesat’s broadcast services business provided approximately 54% of its revenue during the year ended December 31, 2011. These services included DTH, Video Distribution and Contribution and Occasional Use Services.Both Canadian DTH service providers (Bell TV and Shaw Direct) uses Telesat’s satellites as a distribution platform for their services, delivering television programming, audio and information channels directly to customers’ homes. In addition, Telesat’s Anik F3 and Nimiq 5 satellites are used by EchoStar (Dish Network) for DTH services in the United States.
The broadcasters, cable networks and DTH service providers use Telesat satellites for the transmission of television programming. Telstar 18 delivers video distribution and contribution in Asia and offers connectivity to the United States mainland via Hawaiian teleport facilities. Telstar 12 is also used to transmit television services. In both Brazil and Chile, Telesat provides video distribution services on Telstar 14R/Estrela do Sul 2. Occasional use services consist of satellite transmission services for the broadcast of video news, sports and live event coverage on a short-term basis enabling broadcasters to conduct on-the-scene transmissions using small, portable antennas.
Telesat’s enterprise services provided approximately 42% of its revenue during 2011. These services include Data networks in North America and the related ground segment and maintenance services supporting these networks, international enterprise networks, Ka-band Internet services, telecommunication carrier services and government services. Telesat operates very small aperture terminal (VSAT) networks in North America, managing thousands of VSAT terminals at customer sites. For some of these customers Telesat offers end-to-end services including installation and maintenance of the end user terminal, maintenance of the VSAT hub, and provision of satellite capacity. For other customers, Telesat may provide a subset of these services.
Telesat’s global Internet protocol (IP)-based network service infrastructure allows it to provide worldwide IP-based terrestrial extension services that permit enterprises to reach all of their locations worldwide. In addition, these managed service solutions enable multi-cast and broadcast functionality, as with traditional video broadcast distribution. These services are delivered to enterprises whose headquarters are in the United States or Europe both through terrestrial partners and directly. Telesat provides Ka-band satellite capacity to Xplornet Communications Inc. and other resellers in Canada who use it to provide two-way broadband Internet services in Canada. Telesat also provides Ka-band satellite capacity to WildBlue, which uses it to provide similar services in the United States. Telesat has insurance policies that provide coverage for a total, constructive total or partial loss of Telstar 14R /Estrela do Sul 2.
Telesat provides satellite capacity and services for data and voice transmission to telecommunications carriers located throughout the world. These services include connectivity and voice circuits to remote locations in Canada for customers, such as Bell Canada and NorthwesTel and space segment capacity and terrestrial and aeronautical sectors. The United States government is the consumer of fixed satellite services and a user of Telesat’s international satellites. Telesat is also a provider of satellite services to the Canadian Government. elesat’s consulting & other category provided approximately 4% of its revenues during 2011. In 2011, the international consulting business provided satellite-related services in approximately 21 countries. Telesat is a consultant in establishing, operating and upgrading satellite systems worldwide.
The Company competes with Boeing, Lockheed Martin, Thales Alenia Space, EADS Astrium, Mitsubishi Electric Corporation, Orbital Sciences, Ciel, ViaSat/WildBlue, HNS/EchoStar, Satmex, Hispamar, Eutelsat, Arabsat, Nilesat, HellasSat, RSCC, Yahsat, Turksat, Spacecom, AsiaSat, Measat, Thaicom, APT, PT Telkom, Optus, Asia Broadcast Satellite, Satmex, Star One, Arsat and HispaSat.
Loral Space & Communications Inc
600 THIRD AVE
NEW YORK NY 10016
Company Web Links
- UPDATE 1-Market Chatter-Corporate finance press digest
- Market Chatter- Corporate finance press digest
- Telesat owner Loral hires Perella to advise board on sale: sources
- UPDATE 2-Telesat owner Loral hires Perella to advise board on sale -sources
- Telesat owner Loral's board hires Perella to advise on sale-sources