PARIS, May 7, 2013 /PRNewswire/ --
- Revenues up 4.6% to €322.9 million (+3.9% at constant
currency)
- Nine-month revenues up 5.0% to €956.5 million (+3.5% at
constant currency)
- Record backlog of €5.5 billion
- Outlook for FY 2012-2013:
- Revenue growth confirmed in the 5-6% range
- Robust EBITDA margin at around 77.5%
Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris:
ETL), one of the world's leading satellite operators, today
published its financial report for the third quarter and nine
months ended 31 March 2013.
Revenues by business application:
3rd quarter ended 9 months ended
March 31 Change March 31 Change
In millions of euros 2012 2013 In % 2012 2013 In %
Video Applications 211.0 216.4 +2.6 614.3 647.1 +5.3
Data & Value-Added Services 57.9 60.8 +4.9 175.7 185.6 +5.6
Multi-usage 37.0 35.4 -4.4 111.4 108.1 -3.0
Other revenues 2.8 2.6 -8.0 6.1 8.0 +30.0
Subtotal 308.7 315.1 +2.1 907.7 948.8 +4.5
Non-recurring revenues - 7.7 NM 3.5 7.7 NM
Total 308.7 322.9 +4.6 911.2 956.5 +5.0
Commenting on the Group's third quarter 2012-2013 revenues,
Michel de Rosen, CEO of Eutelsat
Communications, said:
"Third quarter revenues were up 4.6%. The
performance of Video, our main business, accounting for almost 70%
of revenues, was underpinned by sustained demand at key
neighbourhoods over Europe,
Africa, and
the Middle
East. Multi-usage revenues
reflected the impact of US federal budget
sequestration which significantly affected the outcome of contract
negotiations during the quarter. This was partially offset by the
integration of EUTELSAT 172A into the fleet.
The record order backlog of €5.5 billion was buoyed in
particular by new long-term video contracts in North Africa and the Middle East, lending strong visibility on
future revenues. We are pursuing our programme to
deploy capacity on seven additional satellites by end
2015 to enable us to meet demand in the highest growth applications
and regions, with the first, EUTELSAT 3D, on track for launch on
May 14.
Our revenue objective for Full Year 2012-2013 is maintained,
with a likely outturn at the lower end of the 5-6% range.
Notwithstanding the current investment in our overall commercial
activity, the Group's EBITDA margin is now
expected to be around 77.5%."
THIRD QUARTER REVENUE ANALYSIS
Note: Unless otherwise stated, all
growth indicators or comparisons are made against the third quarter
of the previous fiscal year ended 31 March
2012. The share of each application as a percentage of total
revenues is calculated excluding "Other revenues" and
"Non-recurring revenues".
Eutelsat Communications reported revenues of €322.9 million for
the third quarter, up 4.6% (3.9% at constant currency). For the
9-month period ending 31 March 2013,
Group revenues stood at €956.5 million, up 5.0% (+3.5% at constant
currency).
VIDEO APPLICATIONS (69.2% of
revenues[1])
Revenues from Video Applications, Eutelsat's largest
business activity, rose 2.6% to €216.4 million. Growth was driven
by three video neighbourhoods in particular:
- 16° East, serving broadcasters in Central Europe and Indian Ocean Islands, with
the continuing ramp-up of new capacity added to this position in
2011 from EUTELSAT 16A. Channel count at this video neighbourhood
increased 17% year-on-year to 625 channels.
- 7° East, with coverage of Turkey, where both new and renewal contracts
were signed. Performance was boosted by HD channel uptake which
grew by 39% year-on-year. HD penetration at this neighbourhood is
now the highest of Eutelsat's fleet, at over 15%.
- 5° West, notably serving France and Algeria, also saw growth with new channels
coming into the fleet. The total number of channels rose by 30% to
261, with the HD channel count up from six to 22, boosted by new
sports channels.
The HOT BIRD position continued to grow, as long-term contracts
in the backlog translated into revenues. The three HOT BIRD
satellites were broadcasting 1,117 channels at 31 March 2013, with HD penetration at 13.5%, up
from 11.4% a year earlier.
The 7/8°West video neighbourhood also continues to show strong
dynamic, with channel growth in both Standard Digital (+13% to 601
channels) and High Definition which more than doubled to 48
channels. The Middle East and
North Africa region remains a
strong performer, reflected by new long-term contracts signed
during the quarter for upcoming broadcasting capacity at 7/8° West
and 25°5 East.
At 31 March 2013, the total number
of channels broadcast by Eutelsat was 4,638, up 9% (+386 channels)
year-on-year. 434 of these channels were in High Definition
(+30%), implying an HD penetration rate across the fleet of 9.4%,
compared to 7.8% at 31 March
2012.
DATA and VALUE-ADDED SERVICES (19.4%
of revenues)
Revenues from Data and Value-Added Services stood at
€60.8 million, up 4.9%.
Data Services revenues stood at €46.7 million (+3.8%),
reflecting the integration of EUTELSAT 172A into the fleet.
Despite the additional capacity on the EUTELSAT 21B and EUTELSAT
70B satellites that became available over recent months, Data
Services did not perform as well as expected. The markets for
point-to-point services remain challenging as a consequence of
terrestrial networks (optic fibre) deployment and the increase in
supply of available satellite capacity, notably in Africa.
Demand remains dynamic however for capacity for corporate
networks and mobility in fastest growing regions including
Africa and the Asia Pacific. Eutelsat has recently reinforced
its commercial presence in both regions to take advantage of these
positive trends.
Value-added Services recorded growth of 8.9% to €14.1
million. Marketing efforts, combined with an enhanced consumer
broadband offer that provides speeds of up to 20Mbps download and
up to 6Mbps upload and unlimited volumes, generated good
sales momentum for KA-SAT. The distribution network also continued
to expand. On the professional side, the Group recently signed a
contract with a North African client using two of KA-SAT's beams to
provide 1.6Gbp/s.
--------------------------------------------------
1. Percentages of revenues exclude "Other revenues" and
"Non-recurring revenues".
MULTI-USAGE (11.3% of revenues)
Revenues from Multi-usage services fell by 4.4% to €35.4
million.
This performance reflected the US federal budget sequestration
which significantly affected the outcome of negotiations for
renewal and new contracts. This was partially offset by the
integration of EUTELSAT 172A into the fleet.
OTHER AND NON-RECURRING REVENUES
Other revenues of €2.6 million related primarily to revenues
from technical service contracts with partners.
Non-recurring revenues of €7.7 million mainly included penalties
for late delivery of satellites currently under procurement.
LONG TERM VISIBILITY ASSURED - BACKLOG
CONTINUES TO INCREASE
The order backlog reached a record high €5.5 billion at
31 March 2013, reinforcing long-term
visibility on revenues and operating cash flows. The backlog is
equivalent to approximately 4.5 times annual revenues for Full Year
2011-2012. It mainly comprises video contracts (92%) and includes
contracts recently signed over the MENA region for future
satellites.
YEAR-TO-DATE REVENUES (9 months ending
31 March 2013) AND OUTLOOK
Revenues for the first nine months of 2012-2013 amounted to
€956.5 million, up 5.0% (+3.5% at constant currency) compared to
the same period of the previous fiscal year.
The full year 2012-2013 reported revenue growth objective of 5
to 6% is confirmed. It is expected to come in at the lower end of
the range. Notwithstanding the ongoing investment in the overall
commercial activity, the Group refines its EBITDA margin objective
for the current year, which is now expected at around 77.5%, from
around 77% earlier.
For the medium-term, the Group confirms positive trends for its
leading business of video, which will benefit from new satellites
to be launched by end 2015. However, the current challenges in Data
services and Multi-usage could have an impact on the Group's
revenue prospects. This impact would however be limited, at around
one percentage point of revenue growth. The Group will discuss its
medium-term outlook on the occasion of its Full Year results, on
30 July 2013.
FLEET DEPLOYMENT PLAN UPDATE
EUTELSAT 70B entered into full commercial service at
70.5° East on 16 January 2013. This
new satellite has been designed to optimise resources at 70.5° East
which is a point of reference for data services, broadband access,
mobile backhauling and professional video exchanges. With high
frequency reuse, four powerful beams with coverage of Europe, Africa, Asia
and Australia are connected to 48
Ku-band transponders.
The EUTELSAT 3D satellite arrived on 13 April 2013 at the Baikonour Cosmodrome in
Kazakhstan and is now undergoing
final preparations for launch by a Proton Breeze M rocket supplied
by ILS. Lift-off is on track for 14 May. With a baseline design
equipping it to increase Eutelsat's overall in-orbit flexibility
and back-up from multiple orbital slots, EUTELSAT 3D will initially
be located at the 3° East orbital position to video, data, telecom
and broadband markets. Through a configuration of Ku and Ka
transponders connected to three footprints, the new satellite will
serve customers in Europe,
North Africa, the Middle East and Central Asia. A fourth service area in the
Ku-band will address markets in sub-Saharan Africa. EUTELSAT 3D
will operate at 3° East until the deployment of the EUTELSAT 3B
satellite to this position in 2014. EUTELSAT 3B will provide
spectrum growth and high operational flexibility in C, Ku and Ka
bands at 3° East, and release EUTELSAT 3D for service at 7°
East.
RECENT EVENTS
Hispasat
On 18 April 2013, Eutelsat
Communications acquired a 6% stake in Hispasat, the Spanish
satellite operator. The total stake held by Eutelsat Communications
in Hispasat is now 33.69%.
New export credit financing
On 25 April, Eutelsat Communications entered into two separate
bank loan agreements covered by the Office national du ducroire
(ONDD), the Belgian export credit agency.
The first agreement, for a total amount of €121 million, is an
11.5 year amortising facility (the first installment will be repaid
three years after signing) bearing interest at an all-in rate of
2.07%[2], and will be used to finance the construction
of a satellite.
The second agreement, for a total amount of €87 million, is an
11.5 year amortising facility (the first installment will be repaid
three years after signing) bearing interest at an all-in rate of
2.23%[2], and will be used to
finance a launcher.
Third Quarter revenues
presentation
Eutelsat Communications will hold a conference call in English
on Tuesday 7 May 2013 starting at 6.30pm CET (London: 5:30pm,
New York: 12:30pm). To connect please dial:
+33 1 70 99 32 12 (from France)
+44 207 162 0177 (from the U.K)
+1 334 323 6203 (from the United
States)
Access code: 930541#
Live presentation by webcast, via this
link:
http://wcc.webeventservices.com/r.htm?e=601054&s=1&k=28DAD6452F8D3184853C3064B90D0D1C&cb=blank
Instant replay number from 7 May 11:30pm to May 21,
midnight (CET). To connect please dial:
+ 33 (0)1 70 99 35 29 (from France)
+ 44 (0) 207 031 4064 (from the U.K)
+ 1 954 334 0342 (from the United
States)
Access code: 930541#
Financial calendar
The financial calendar below is
provided for information purposes only. It is subject to change and
will be regularly updated. Note publication of results will be
after close of market unless otherwise indicated.
- July 30, 2013: earnings for the
full year ended June 30, 2013
- October 29, 2013: financial
report for first quarter ended September 30,
2013
- November 7, 2013: Annual
General Shareholders Meeting
About Eutelsat Communications
Eutelsat Communications is the holding company of Eutelsat S.A.
With capacity commercialised on 30 satellites delivering reach of
Europe, the Middle East,
Africa, Asia, significant parts of the Americas and
the Asia-Pacific, Eutelsat
Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is
one of the world's leading satellite operators. As of 31 March 2013, Eutelsat's satellites were
broadcasting more than 4,600 television channels to over 200
million cable and satellite homes in Europe, the Middle
East and Africa. The
Group's satellites also provide a wide range of services for TV
contribution, corporate networks and fixed and mobile broadband
markets. Headquartered in Paris,
Eutelsat and its subsidiaries employ over 780 commercial, technical
and operational professionals from 30 countries.
http://www.eutelsat.com
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2. Rates based on 6-month Euribor and calculated at the
facilities signing date
Appendix
Revenue breakdown
by application (in percentage of revenues)*
3 months ended 31 March 9 months ended 31 March
2012 2013 2012 2013
Video Applications 69.0% 69.2% 68.1% 68.8%
Data & Value-Added Services 18.9% 19.4% 19.5% 19.7%
........of which Data Services 14.7% 14.9% 15.5% 14.9%
.......of which Value-Added
Services 4.2% 4.5% 4.0% 4.8%
Multi-usage 12.1% 11.3% 12.4% 11.5%
Total 100% 100% 100% 100%
*excluding other revenues and one-off revenues (€2.8 million
in Q3 2011-2012, €10.3 million in Q3 2012-2013 and €9.6
million year-to-date 2011-2012, €15.7 million year-to-date
2012-2013).
Quarterly revenues
by business application
2011-2012 2012-2013
In millions of euros Q1 Q2 Q3 Q4 Q1 Q2 Q3
Video Applications 198.2 205.1 211.0 217.8 216.3 214.4 216.4
Data & Value-Added
Services 59.6 58.2 57.9 59.3 61.1 63.8 60.8
Data Services 48.3 46.8 45.0 44.9 44.9 48.8 46.7
Value-Added Services 11.3 11.4 12.9 14.3 16.2 15.0 14.1
Multi-usage 36.2 38.2 37.0 35.0 34.1 38.6 35.4
Other Revenues 1.3 2.0 2.8 (1.1) 3.0 2.4 2.6
Subtotal 295.4 303.6 308.7 311.1 314.4 319.2 315.1
Non-recurring Revenues - 3.5 - - - - 7.7
Total 295.4 307.1 308.7 311.1 314.4 319.2 322.9
Channels at video
neighbourhoods serving Central and Eastern Europe, Russia, Middle
East and Africa
Orbital position Markets 31/03/2012 31/03/2013
7degree(s)/8degree(s) West North Africa, Middle East 553 649
7degree(s) East Turkey 214 228
16degree(s) East Central Europe, Indian Ocean islands 534 625
36degree(s) East Russia, Africa 691 727
Total 1,992 2,229
Estimated
satellite launch schedule (satellites generally enter into service
one to two months after launch.)
Estimated launch
Satellite (calendar year) Transponders
EUTELSAT 3D[1] Q2 2013 53 Ku / 3 Ka[2]
EUTELSAT 25B[3] Q3 2013 16 Ku / 7 Ka
Express AT2[4] H2 2013 8 Ku
EUTELSAT 3B H1 2014 51 (Ku, Ka, C)
EUTELSAT 9B Q1 2015 60 Ku
EUTELSAT 8 West B Q3 2015 40 Ku / 10 C
EUTELSAT 36C[4] H2 2015 Up to 70 (Ku & Ka)
[1] Ex-EUTELSAT 7B
[2] Nominal capacity. 32 Ku / 1
Ka to be operational at 3°East
[3] Partnership satellite with
Qatar Satellite Company, transponders indicated for Eutelsat
portion only, pending outcome of ITU dispute
[4] Partnership satellites with
RSCC
SOURCE Eutelsat Communications
