(NYSE: I) (Debt: $15bn)
One of the Leading Fixed Satellite Service Provider with a Market Share of 21% / New Generation HTS Satellites Will Partially Offset Weakness in the Network Services Segment / Ongoing Management Initiatives Move to Balance Sheet Improvement / Gradual Improvement in Leverage and Free Cash Flows Expected / Sizable Contracted Backlog of $8.9bn as of Sept. 2016
The troubles for Intelsat magnified after 2013, when the company started facing pressure on its top line as a result of the increased pricing pressures in network services and declines in the earnings from government customers on account of sequestration. While the decline in revenue from government customers stabilized in 2016, the network services continued to decline due to non-renewals and the renewal of due contracts at lower pricing.
However, The Edge believes that the current weakness in network services will stabilize going forward with the help of high throughput Epic Satellites (HTS), growing demand from aeronautical and marine broadband services and a stable outlook on media and cellular backhaul.