In September, Intelsat announced a new contract with commercial aeronautical broadband service provider Gogo, a leader of in-flight connectivity and a pioneer in wireless in-flight digital entertainment solutions, on nine beams on Intelsat’s global Ku-band broadband mobility platform. Gogo will use capacity on the Intelsat 14, Intelsat 19, Intelsat 21, Intelsat 22, and Intelsat 27 satellites to extend its current U.S. domestic service territory to international regions.

In August, Intelsat also announced that Panasonic Avionics Corporation (“Panasonic”), the world leader in in-flight entertainment and communications, had selected the Intelsat Epic^NG platform for its next generation commercial aeronautical service offering. Subsequently, Panasonic signed a new agreement for Ku-band capacity on Intelsat 14, located at 315° East, expanding its current aeronautical service platform.

Intelsat’s network services business continues to experience demand for fixed, wireless and broadband infrastructure used by telecom operators, wireless operators and enterprise network providers.

Brazilian telecommunications firm Intelig Telecomunicacoes, a subsidiary of Telecom Italia Moviles recently renewed its long-term commitment for C-band capacity on Intelsat 901 at 342° East to provide Internet trunking, cellular backhaul and fiber redundancy to remote locations in the Amazon region.

Telefonica del Peru, a leading integrated telecommunications operator, contracted for new capacity on Intelsat 1-R at 310° East, migrating later to Intelsat 805 at the same orbital location. The company will use the capacity for domestic cellular backhaul and enterprise private data networks.

iSatcom, a data networking company, recently signed a multi-year agreement on Intelsat 20. The company plans to use the services to deliver VSAT service to customers across Mongolia.

Claro Chile, a subsidiary of America Movil, recently renewed its multi-year agreement on Intelsat 23 at 307° East for the distribution of programming content to cable television operators, as well as cellular backhaul and corporate VSAT services across Chile.

Intelsat’s media business momentum continued, as use of capacity grew under previous contractual commitments, primarily from direct-to-home (“DTH”) service providers. Additional contracts in the period reflect regionalization of content, among other trends.

Intelsat recently announced new agreements with two of Bulgaria’s top media companies. NURTS, the primary tower company and sole digital terrestrial television (“DTT”) operator in Bulgaria, will leverage capacity on Intelsat 12 at 45° East to contribute content to its terrestrial towers for DTT services in Bulgaria. In the second agreement, Bulgarian Telecom (VIVACOM), Bulgaria’s national telecommunications provider, signed a multi-year agreement on Intelsat 12 to add high-definition content to its DTH platform for delivery in Bulgaria.

Multichoice Technical Operations (Pty) Ltd., the leading DTH provider serving Africa and a subsidiary of Naspers, signed a new agreement for additional capacity on Intelsat 904 at 60° East.

NTA Nigeria, the national broadcaster, recently renewed its contract for the distribution of Ku-band DTH video service to customers in Europe on Intelsat 905 at 335.5° East.

As announced in September, Mexico-based Grupo Televisa renewed its multi-year deals on Intelsat 11 at 317° East and Intelsat 905 at 335.5° East. The company will provide prime high-definition distribution of its Pay TV services for Latin America’s leading cable distribution systems on Intelsat 11, and its European Pay TV bouquet to cable systems on Intelsat 905.

Intelsat’s executed contract renewals and expansions in the government sector reflected solid demand for mobility applications with the high reliability and coverage of Intelsat’s extensive fleet. Various customers added over 100 MHz of capacity to existing mobility networks, the majority of which was on the Intelsat fleet.

Intelsat General Corporation, an indirect, wholly-owned subsidiary of Intelsat S.A., was selected as a prime contractor under the U.S. government’s new Custom SATCOM Solutions contract, a program that will provide end-to-end, turnkey satellite communications solutions to military and civilian government users. The program, known as CS2, is the final segment of the new Future COMSATCOM Services Acquisition (FCSA) procurement process, managed jointly by the Defense Information Systems Agency and the General Services Administration.

Intelsat is successfully executing a satellite-launch program to expand and refresh its service capacity. The current program includes six satellites, five of which have launched in 2012.

The Intelsat 19 satellite entered into service in August 2012, having suffered damage to one solar array during its June 2012 launch. Although both solar arrays are deployed, the power available to the satellite is less than is required to operate 100% of the payload capacity. We have filed a partial loss claim with our insurer relating to the solar array anomaly.

The Intelsat 20 satellite, launched on 2 August 2012, entered into service in September at its orbital destination of 68° East, where it is replacing the Intelsat 7 and Intelsat 10 satellites.

The Intelsat 21 satellite, launched on 19 August, entered into service in October at its orbital destination of 302° East, where it replaced the Intelsat 9 satellite.

Intelsat 23 was successfully launched on 14 October, and is expected to enter service later in the fourth quarter 2012 at 307° East, replacing Intelsat 707. Intelsat 23 will provide C-band services to customers in the Americas, Europe and Africa, and Ku-band coverage for Latin America.

Intelsat’s average fill rate on our approximately 2,150 station-kept transponders was 77 percent at September 30, 2012, reflecting a net increase in transponders resulting primarily from the entry into service of the Intelsat 19 and 20 satellites, as well increased active transponders from new contract activity.

On October 3, 2012, Intelsat Jackson Holdings S.A. (“Intelsat Jackson”), a wholly-owned subsidiary of Intelsat S.A., completed an offering of $640.0 million aggregate principal amount of its 6⁵/₈% Senior Notes due 2022. The net proceeds from the offering were primarily used to repurchase or redeem all of Intelsat Jackson’s outstanding 11 ¹/₄% Senior Notes due 2016. In connection with the tender offers and redemption, we expect to recognize a loss on early extinguishment of debt of $23.6 million in the fourth quarter of 2012, consisting of the difference between the carrying value of the debt ultimately repurchased or redeemed and the total cash amount paid (including related fees), and a write-off of unamortized debt premium.

On October 3, 2012, Intelsat Jackson entered into an Amendment and Joinder Agreement that reduced interest rates applicable to borrowings under Intelsat Jackson’s secured term loan facility and secured revolving credit facility to (i) the London Inter-Bank Offered Rate (“LIBOR”) plus 3.25% or (ii) the Above Bank Rate (“ABR”) plus 2.25%. Following the amendment, the interest rate may decrease to LIBOR plus 3.00% or ABR plus 2.00% based on the corporate family rating of Intelsat Jackson from Moody’s Investors Service, Inc. The LIBOR and the ABR, plus the applicable margins, will be determined as specified in the applicable agreement and amendment, and LIBOR will not be less than 1.25% per annum.

On October 5, 2012, Intelsat Global Service LLC, our indirect subsidiary, completed the sale of our U.S. administrative headquarters office building in Washington, D.C., for a purchase price of approximately $85.0 million in cash. The sale will result in a pre-tax gain to be recognized in the fourth quarter of 2012 of approximately $12 to $13 million. Upon the closing of the sale, we entered into an agreement under which we will temporarily lease from the purchaser a portion of the property. We are currently in the process of selecting a location for a new permanent U.S. administrative headquarters.

Intelsat acquired the remaining 25.1% equity of the New Dawn Satellite Company, Ltd. joint venture for $8.7 million and retired $82.6 million in debt incurred by the venture. As a result of the transaction, which was completed in October 2012, the satellite, previously called “New Dawn,” was renamed Intelsat 28. Because the venture was previously fully consolidated in Intelsat’s results, no change to revenue or net loss is expected. We will eliminate the redeemable noncontrolling interest in the fourth quarter.

As of September 30, 2012, the outstanding balance on our revolving credit facility was $150.0 million, and availability under the facility was $339.3 million.

Transponder services—an aggregate increase of $6.9 million, principally due to an $8.8 million increase in revenue from growth in services sold to media customers largely in the Europe, the Latin America and Caribbean and the Asia-Pacific regions, partially offset by an aggregate $2.7 million decrease in revenue from network services customers, reflecting a decline in demand from Europe-based customers for services provided in Africa, and an increase in the Latin America and Caribbean region.

Managed services—an aggregate decrease of $1.4 million, largely due to a decrease in revenue from network services customers for international trunking primarily in Africa, a trend that we expect will continue due to the migration of services in this region to fiber optic cable, partially offset by increases in revenue from broadband services for mobility applications.

Channel—an aggregate decrease of $3.6 million related to a continued decline from the migration of international point-to-point satellite traffic to fiber optic cable, a trend that we expect will continue.

Transponder, MSS and other off-network services—an aggregate decrease of $2.0 million, primarily due to declines in off-network transponder services for network services and media customers.

Satellite-related services—an aggregate increase of $2.1 million, primarily due to higher professional fees earned for providing government professional services and flight operations support for third-party satellites as compared to the third quarter of 2011.

Direct costs of revenue decreased by $7.8 million, or 7%, to $102.9 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. The decrease was primarily due to $4.4 million of higher service costs in 2011 associated with the accounting for our revenue and cost-sharing arrangements with JSAT International, Inc. related to the consolidation of the Horizons Satellite Holdings, LLC (“Horizons Holdings”) joint venture on September 30, 2011. Further, in 2012 there was a $2.2 million decline in costs attributable to purchases of off-network fixed satellite services (“FSS”) capacity and other third-party services, as well as a $1.2 million decrease in office and operational expenses.

Selling, general and administrative expenses decreased by $3.9 million, or 8%, to $46.9 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. The decrease was primarily due to a $2.6 million decrease in bad debt expense and $1.7 million of lower professional fees, partially offset by a net $1.2 million increase in staff related expenses largely due to non-cash stock compensation costs associated with the amended and restated Intelsat Global, Ltd. 2008 Share Incentive Plan (the “2008 Share Plan”).

Depreciation and amortization expense decreased by $1.9 million, or 1%, to $192.0 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. This decrease primarily resulted from lower depreciation expense due to the timing of certain satellites becoming fully depreciated, together with variation from year to year in the expected pattern of consumption of amortizable intangible assets. Those decreases were partially offset by increases from the impact of satellites placed into service during 2011 and 2012.

Our income from operations increased by $8.9 million, to $301.1 million, for the three months ended September 30, 2012, compared to $292.2 million for the three months ended September 30, 2011, due primarily to the effects described above, including lower expenses, most notably lower direct costs of revenue. Income from operations was further affected by:

a $12.0 million loss recognized on our derivative financial instruments for the three months ended September 30, 2012, related to the net loss on our interest rate swaps, which reflects interest expense accrued on the interest rate swaps as well as the change in fair value. For the three months ended September 30, 2011, we recorded a loss of $5.4 million on derivative financial instruments.

Interest expense, net consists of the gross interest expense we incur less the amount of interest we capitalize related to capital assets under construction and less interest income earned. Interest expense, net decreased by $5.4 million, or 2%, to $312.0 million for the three months ended September 30, 2012, as compared to $317.4 million for the three months ended September 30, 2011. The decrease in interest expense, net was principally due to the following:

a net decrease of $7.7 million in interest expense as a result of Intelsat Jackson’s notes offering, repurchases and redemptions in the first half of 2012, partially offset by

an increase of $3.0 million from lower capitalized interest resulting from decreased levels of satellites and related assets under construction.

Loss on early extinguishment of debt was $3.1 million for the three months ended September 30, 2012, with no similar charge for the three months ended September 30, 2011. The 2012 loss was comprised of the write-off of unamortized debt issuance costs in connection with the prepayment of $112.2 million of New Dawn debt with proceeds received from an insurance claim.

Loss from previously unconsolidated affiliates was $20.2 million for the three months ended September 30, 2011, with no comparable amount for the three months ended September 30, 2012, due to the consolidation of the Horizons Holdings joint venture in September 2011.

Other expense, net was $22.0 million for the three months ended September 30, 2012, as compared to other income, net of $0.6 million for the three months ended September 30, 2011. The difference of $22.6 million was primarily due to a $21.0 million charge related to fees and expenses in connection with the expiration of an unconsummated third-party investment commitment and a $1.4 million increase in exchange rate losses, primarily related to our business conducted in Brazilian reais and euros.

Our benefit from income taxes was $1.5 million for the three months ended September 30, 2012, as compared to a benefit of $42.7 million for the three months ended September 30, 2011. The difference was principally due to the tax benefit associated with the 2011 Horizons re-measurement charge and the release of certain valuation allowances on our U.S. subsidiary’s deferred state tax assets relating to internal subsidiary mergers during the three months ended September 30, 2011.

Network Services

Media

Government

Other

On-Network Revenues

Transponder services

Managed services

Channel

Total on-network revenues

Off-Network and Other Revenues

Transponder, MSS and other off-network services

Satellite-related services

Total off-network and other revenues

Total

In this release, financial measures are presented both in accordance with GAAP and also on a non-GAAP basis. EBITDA, Intelsat S.A. Adjusted EBITDA, free cash flow from operations and related margins included in this release are non-GAAP financial measures. Please see the consolidated financial information below for information reconciling non-GAAP financial measures to comparable GAAP financial measures.

Revenue

Operating expenses:

Direct costs of revenue (excluding depreciation and amortization)

Selling, general and administrative

Depreciation and amortization

Losses on derivative financial instruments

Total operating expenses

Income from operations

Interest expense, net

Loss on early extinguishment of debt

Loss from previously unconsolidated affiliates

Other income (expense), net

Loss before income taxes

Benefit from income taxes

Net loss

Net (income) loss attributable to noncontrolling interest

Net loss attributable to Intelsat S.A.

Net loss

Add (Subtract):

Interest expense, net

Loss on early extinguishment of debt

Benefit from income taxes

Depreciation and amortization

EBITDA

EBITDA Margin

Net loss

Add (Subtract):

Interest expense, net

Loss on early extinguishment of debt

Benefit from income taxes

Depreciation and amortization

Intelsat S.A. EBITDA

Add (Subtract):

Compensation and benefits

Management fees

Loss from previously unconsolidated affiliates

Losses on derivative financial instruments

Non-recurring and other non-cash items

Intelsat S.A. Adjusted EBITDA

Intelsat S.A. Adjusted EBITDA Margin

ASSETS

Current assets:

Cash and cash equivalents, net of restricted cash

Restricted cash

Receivables, net of allowance of $20,830 in 2011 and $24,406 in 2012

Deferred income taxes

Prepaid expenses and other current assets

Total current assets

Satellites and other property and equipment, net

Goodwill

Non-amortizable intangible assets

Amortizable intangible assets, net

Other assets

Total assets

LIABILITIES AND SHAREHOLDER’S DEFICIT

Current liabilities:

Accounts payable and accrued liabilities

Taxes payable

Employee related liabilities

Accrued interest payable

Current portion of long-term debt

Deferred satellite performance incentives

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt, net of current portion

Deferred satellite performance incentives, net of current portion

Deferred revenue, net of current portion

Deferred income taxes

Accrued retirement benefits

Other long-term liabilities

Redeemable noncontrolling interest

Shareholder’s deficit:

Ordinary shares, $1.00 par value, 100,000,000 shares authorized and 5,000,000 shares issued and outstanding at December 31, 2011 and September 30, 2012

Paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total Intelsat S.A. shareholder’s deficit

Noncontrolling interest

Total liabilities and shareholder’s deficit

Cash flows from operating activities:

Net loss

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

Provision for doubtful accounts

Foreign currency transaction loss

(Gain) loss on disposal of assets

Share-based compensation expense

Deferred income taxes

Amortization of discount, premium, issuance costs and other non-cash items

Loss on early extinguishment of debt

Share in loss from previously unconsolidated affiliates

Unrealized gains on derivative financial instruments

Termination of third-party commitment costs and expenses

Other non-cash items

Changes in operating assets and liabilities:

Receivables

Prepaid expenses and other assets

Accounts payable and accrued liabilities

Deferred revenue

Accrued retirement benefits

Other long-term liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Payments for satellites and other property and equipment (including capitalized interest)

Capital contributions to previously unconsolidated affiliates

Loan to affiliated party

Other investing activities

Net cash used in investing activities

Cash flows from financing activities:

Repayments of long-term debt

Proceeds from issuance of long-term debt

Debt issuance costs

Payment of premium on early retirement of debt

Capital contribution from noncontrolling interest

Dividends paid to noncontrolling interest

Noncontrolling interest in New Dawn

Principal payments on deferred satellite performance incentives

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Net change in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Net cash provided by operating activities

Payments for satellites and other property and equipment (including capitalized interest)

Free cash flow from (used in) operations