Satellite Industry Likely Won't See Much M&A, Says Intelsat CFO, Also Eyeing IoT Expansion
Don't expect to see many mergers or acquisitions in the satellite industry despite the benefits of such consolidation, Intelsat Chief Financial Officer Michael McDonnell said Tuesday at a Deutsche Bank's investor conference. The few such M&A transactions in the industry…
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-- such as Eutelsat's 2014 takeover of SatMex -- sometimes come with high price tags, and many smaller operators' governments aren't as interested in consolidation as their owners, McDonnell said. He declined to address directly what he called rumors of Intelsat considering a sale of some assets, except to say its satellite fleet is designed so most of them carry a variety of customer sets and they are supported by a common platform. "We don't really have any assets we consider to be non-core," McDonnell said. While the company's network services revenue has been declining in recent years, its high-throughput Epic satellite platform going online next year opens the door to expansion into markets such as connected cars and IoT and "is our path back to growth," McDonnell said. The company has four launches planned for 2016 -- Intelsat 31 and 29e in Q1 and 33e and 36 in the second half of the year -- and most of its satellites planned in coming years are Epics, he said.