«

»

Sep 23 2015

Print this Post

Is the end near for Intelsat?

Intelsat Has Had A Terrible Week … Selling Assets To Pay Debt. With $14 billion in debt, it would certainly seem to be circling the drain. Hard to see how it can pay its debt down substantially when they only make about $3 billion in revenue each year.

Intelsat has had a terrible week, with its share price tumbling 5.5 per cent on September 22, but having collapsed from $9.83 to just $7.91 over the past five trading days. Intelsat shares are down by 54 per cent since the start of the year.

More details here.

Famed for having broadcast Neil Armstrong’s walk on the moon in 1969, Intelsat has struggled in recent months to boost revenue growth as it faces increasing competition as well as pressure from declining US military spending.

Fears of oversupply of so-called high-throughput satellites, which have a much larger transfer capacity than older satellites, have led many large investors to sell shares in the operator.

Intelsat shares are down about 85 per cent since it listed in 2013, a trend that reflects the broader challenge facing the company in generating new growth.

Emphasis mine. And competition is going to get even tougher in the future as constellations like OneWorld enter the scene.

Permanent link to this article: http://www.newspaceraces.com/2015/09/23/is-the-end-near-for-intelsat/

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Powered by "To Do List Member"