WASHINGTON — Intelsat estimates the in-orbit failure of its first high-throughput satellite will cost the company between $45 million and $50 million in revenue for the year.
Luxembourg and Virginia-based Intelsat said it is still working with Boeing on understanding why the uninsured, three-year-old Intelsat-29e satellite it built sprung a fuel leak three weeks ago and stopped communicating shortly after.
The investigation has so far indicated that Intelsat-29e’s failure is unrelated to the propulsion issues with Intelsat-33e, a Boeing-built satellite that launched in 2016, Steve Spengler, Intelsat’s chief executive, said April 30.
Because of the total loss of Intelsat-29e, the low end of Intelsat’s revenue projection for 2019 is now its most optimistic assessment. Rather than generating between $2.06 billion and $2.12 billion for the year, Intelsat now forecasts revenue of $2 billion to $2.06 billion, the company said in an earnings release. Unexpected customer losses in government and media sectors weighed down Intelsat’s projection by $10 million to $15 million in addition to the satellite loss.
Intelsat Chief Financial Officer Jacques Kerrest said the company is still calculating the full financial impact of losing Intelsat-29e. He said that impact includes the loss of satellite revenue, the cost of accommodating ...