- Targets surpassed: - Revenue growth of more than EUR100 million: +11.3% at EUR 1.047 billion - Record profitability: EBITDA at EUR 827.8 million (+11.5%) - Group share of net income: EUR 269.5 million (+9.0%) - Proposed dividend growing by +15% at EUR0.76 per share - Exceptional visibility: backlog at EUR 4.9 billion (+24%) representing 4.7 years of revenues - Solid outlook: - Revenue Compound Average Growth Rate above 7% over the next three years, with revenues exceeding EUR1.12 billion in 2010-2011 - EBITDA margin target maintained above 77% for each fiscal year until June 2013, with EBITDA target above EUR875 million in 2010-2011
The Board of Directors' meeting of Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL), under the chairmanship of Giuliano Berretta, met yesterday and reviewed its financial results for the year ended June 30, 2010.
Twelve months ended June 30 2009 2010 Change Key elements of consolidated income statement Revenues EURm 940.5 1,047.2 +11.3% EBITDA EURm 742.1 827.8 +11.5% EBITDA margin % 78.9 79.0 +0.1 pt Group share of net income EURm 247.3 269.5 +9.0% Diluted earnings per share EUR 1,126 1,224 +8.7% Key elements of consolidated cash flow statement Net cash flow from operating activities EURm 654.7 698.3 +6.7% Capital expenditure EURm 416.6 494.4 +18.7% Operating free cash flow EURm 358.7 203.9 -43.2% Key elements of financial structure Net debt EURm 2,326 2,424 +4.2% Net debt/EBITDA X 3.13 2.93 Backlog Backlog EURbn 3.94 4.88 +23.8%
Commenting on the full year 2009-2010 results, Michel de Rosen, CEO of Eutelsat Communications, said: "Our record growth of more than 11% achieved for both revenues and EBITDA benefited from the rapid take-up of the in orbit expansion programme which we began three years ago. Our strategy puts us at the heart of the most dynamic markets of the digital economy: television and broadband in Europe, the Middle East and Africa. Our backlog has increased by 24% in one year to 4.9 billion euros, reflecting the strength of our orbital positions in markets with high potential for growth. It gives us exceptional visibility equivalent to 4.7 years of sales. Our ambition for the long-term is to continue to deliver growth, profitability and reliability. Seven satellites currently in construction will increase our in-orbit capacity by 25% within three years. Our goal over this period is clear: to exceed the average rate of 7% annual growth in revenues achieved since 2005, while maintaining an EBITDA margin of more than 77% which ensures we can continue to deliver an attractive return to our shareholders."
RECORD REVENUE GROWTH OF MORE THAN EUR100 MILLION
Note: Unless otherwise stated, all growth indicators or comparisons are made against the previous fiscal year or June 30, 2009. The share of each application as a percentage of total revenues is calculated excluding "other revenues" and "one-off revenues".
Revenues by business application (in millions of euros) Change Twelve months ended June 30 2009 2010 (in EUR (in %) million) Video Applications 679.7 742.0 +62.3 +9.2% Data & Value Added Services 173.0 203.7 +30.8 +17.8% Data Services 134.1 157.4 +23.2 +17.3% Value Added Services 38.8 46.3 +7.5 +19.3% Multi-usage 75.4 98.1 +22.7 +30.1% Others and one-off revenues  12.5 3.4 -9.1 NM Total 940.5 1,047.2 +106.7 +11.3%
At a constant euro-dollar exchange rate, revenue growth would have been 12.6% compared with 2008-2009 fiscal year. Excluding one-off revenues and at a constant euro-dollar exchange rate, growth would have been 12.4%.
The reported sales performance is the result of the development of Eutelsat's in-orbit resources, particularly:
- full year impact of the three satellites that entered into service in the course of the previous year; - doubling of capacity at the 36degrees East orbital position, following the entry into service in January 2010 of the W7 satellite (70 transponders) which is co-located with the W4 satellite. VIDEO APPLICATIONS (71.1% of revenues) Video Applications registered strong growth of +9.2% at EUR742 million. - The premium HOT BIRDTM video neighbourhood serving extended Europe was further strengthened by the renewal and extension of existing contracts with leading pay-TV operators including Sky Italia. The number of TV channels broadcast from this neighbourhood was 1,122 as of June 30, 2010, up by 81 channels over the same period last year. - The number of channels broadcast from video neighbourhoods serving the Second Continent increased by 20.7% year-on-year with the addition of almost 300 channels. This progress was particularly strong for the neighbourhoods where Eutelsat increased capacity, specifically at 7 degrees West and 36 degrees East.
In total, the number of TV channels broadcast by Eutelsat's fleet at June 30, 2010 was 3,662, marking an increase of 471 channels (+ 14.8% year-on-year). HDTV was a major growth factor with the number of HDTV channels up by 69 (+80%). As of June 30, 2010, Eutelsat's fleet was broadcasting 155 HDTV channels of which 61 from its premium HOT BIRDTM and EUROBIRDTM 1 neighbourhoods targeting Western Europe, and 94 from other neighbourhoods serving the Second Continent.
Sharp increase in the number of TV channels broadcast from video neighbourhoods serving the Second Continent
Orbital Markets 30/06/09 30/06/10 % Change position 7 degrees West North Africa, Middle East 181 321 +77.3% 7 degrees East Turkey 181 198 +9.4% 9 degrees East Europe 245 272 +11.0% 16 degrees East Eastern and Central Europe, 376 415 +10.4% Indian Ocean islands 36 degrees East Russia, Africa 451 525 +16.4% Total 1,434 1,731 +20.7%
DATA and VALUE-ADDED SERVICES (19.5% of revenues)
Data and Value-Added Services registered strong revenue growth of 17.8%. The entry into service in May 2009 and in January 2010 of two satellites offering excellent coverage of Africa and of the Middle East resulted in the strengthening of Eutelsat's position on these markets which enjoy robust demand for satellite capacity for corporate networks, interconnecting GSM networks and backbone Internet connectivity for Internet Service Providers beyond range of fibre.
During the past fiscal year, Eutelsat further extended its distribution network for the TOOWAY(TM) consumer broadband service in anticipation of the arrival of the KA-SAT satellite in 2011 which will support service roll-out on a large scale. A total of 63 distributors in 30 countries are now part of the distribution network for TOOWAY(TM) which addresses homes beyond range of high-speed networks. With KA-SAT, Eutelsat will also be able to sell innovative solutions targeted at professional data networks, and local or regional television.
MULTI-USAGE (9.4% of revenues)
Multi-usage services (up 30.1%) continue to benefit from strong demand from governments, notably to serve regions in Central Asia and the Middle East. Business momentum benefited from the redeployment of the EUROBIRD(TM) 4A satellite to 4 degrees East in June 2009.
OTHER AND NON-RECURRING REVENUES
Non-recurring and other revenues mainly include payment of late delivery penalties related to the W2A and W7 satellites.
LEASED TRANSPONDERS INCREASED 9%
Having successfully anticipated increased demand from its main markets, Eutelsat brought its available resources to 652 transponders in stable orbit as of June 30, 2010, marking an 11% increase (or 63 transponders) compared to the prior year. These resources were activated within the framework of the Group's ambitious investment programme which is fully self-financed from cash generated from operations.
The Group leased an additional 47 transponders (+9%) during the year. The fill rate consequently fell to 87.5% as of June 30, 2010.
Fleet evolution As of June 30 2008 2009 2010 Operational 501 589 652 transponders Leased transponders 468 523 570 Fill rate 93.4% 88.8% 87.5%
Note: The evolution of the number of operational transponders during the second half 2009-2010 is explained by the entry into service of the W7 satellite, by the relocation of several satellites and by the end of life in January 2010 of the W2 satellite which had 27 transponders.
REMARKABLE 23.8% INCREASE OF BACKLOG AT EUR 4.9 BILLION
The backlog increased by 23.8% during the fiscal year thanks to additional capacity leased by leading operators such as Intersputnik (Russia), MultiChoice Africa (Africa), Nilesat and Noorsat (both in the Middle East).
This performance substantially increases the Group's long-term visibility on revenues and operating cash flow. Based on 2009-2010 revenues, the backlog is equivalent to almost 4.7 times annual revenues, with weighted average residual life of contracts of eight years.
Backlog main indicators: As of June 30 2008 2009 2010 Value of contracts (in billions of euros) 3.4 3.9 4.9 In number of annual revenues based on last fiscal 3.9 4.2 4.7 year Weighted average residual life of contracts (in 7.4 7.8 8.0 years) Share of Video Applications 93% 92% 92%
FURTHER IMPROVEMENT OF KEY INCOME STATEMENT METRICS
EBITDA margin maintained at the highest level of leading satellite operators
Significantly above the initial target of more than EUR795 million, EBITDA registered a strong increase of 11.5% to EUR827.8 million compared with the prior fiscal year due to excellent sales performance and continued tight cost control.
Operating expenses as a percentage of revenues were almost flat compared with the prior fiscal year. The 10.6% increase in operating expenses, which was lower than revenue growth, reflects:
- policy of strict cost control; - increase of resources dedicated to supporting the development of new offers (FRANSAT, TOOWAY(TM)); - evolution of marketing and selling expenses in markets with high potential; - rise in satellite insurance costs, in-line with the fleet expansion.
Thus, EBITDA margin was 79.0%, slightly above the level of 2008-2009 (78.9%).
Group share of Net income increase of 9% to EUR269.5 million
The efficient refinancing of the Eutelsat S.A. subsidiary, and the foreign exchange and interest rate hedging policies kept the financial result at a level almost identical to last year, despite non-recurring costs related to the refinancing and the unwinding of certain derivative interest rate hedging contracts tied to the previous financing. Those charges were noteably offset by a sharp reduction in loan interest, after the effect of the hedges, linked to lower interest rates.
Group net share increased EUR22.2 million (+9.0%), despite the non-recurring income of EUR25.0 million recorded in the previous fiscal year in exchange for the transfer of certain rights related to Hispasat.
Unlike the previous year, the Group share of Net Income for fiscal year 2009-2010 did not have any significant non-recurring items. The progress reflects:
- an increase of EUR36.9 million in operating profit, limited by the non-recurring EUR25.0 million mentioned above in the last fiscal year and an increase of EUR19.1 million of amortisation ; reflecting the increase of the fleet capacity; - income from associates of EUR1.9 million (+11.8%) which reflects the continued quality of the performance of Hispasat. Extract from the consolidated income statement (in millions of euros) Twelve months ended June 30 2009 2010 Change (%) Revenues 940.5 1,047.2 +11.3% Operating expenses (198.4) (219.4) +10.6% EBITDA 742.1 827.8 +11.5% Depreciation and amortisation (294.3) (313.4) +6.5% Other operating income (charges) 23.8 (5.8) NM Operating income 471.6 508.6 +7.8% Financial result (99.6) (100.6) +1.0% Income tax expense (128.0) (143.2) +11.8% Income from associates 16.0 17.8 +11.8% Portion of net income attributable to (12.6) (13.0) +3.0% non-controlling interests Group share of net income 247.3 269.5 +9.0%
HIGH LEVEL OF NET CASH FLOW FROM OPERATING ACTIVITIES
Net cash flow from operating activities: nearly EUR700 million, or 66.7% of revenues
Confirming the strength of its business model, the Group continued to generate high cash flows from its operating activities, up EUR43.6 million (+6.7%) compared to last year despite the following:
- reimbursement of a deposit in 2008-2009 of corporate tax in the amount of EUR21.6 million paid in 2007-2008; - gain in 2008-2009 of non-recurring EUR25.0 million income mentioned above.
Excluding these non-recurring items, cash flow from operating activities would have increased 14.8%.
More than EUR200 million of operating free cash flow remains a surplus. The decline of EUR154.8 million compared to the previous year is the result of:
- an insurance payment in 2008-2009 of EUR120.5 million for the W2M satellite; - an increase of 18.7% in capital expenditures for EUR 494.4 million: this amount is consistent with the average annual target of EUR450 million over the period 2009-2012 announced in July 2009. These investments include the completion and launch of the W7 satellite, which occurred November 24, 2009, as well as the ongoing major programme of renewal and expansion of orbital resources detailed below.
Excluding non-recurring items, operating free cash flow would have increased 6.4%.
Strengthening of Group financial structure
The net debt to EBITDA ratio improved for the fifth year in a row, from 3.13x a year ago to 2.93x at June 30, 2010, despite increased investments and distribution to shareholders (up 10% at EUR156.2 million).
Net debt to EBITDA ratio As of June 30 2009 2010 Change (EURm) Net debt at the beginning of the EURm 2,422 2,326 -96 period Net debt at the end of the EURm 2,326 2,424 +98 period Net debt / EBITDA X 3.13 2.93
In March 2010, Eutelsat S.A. of which Eutelsat Communications owns 96% of the share capital, fully refinanced its EUR1.3 billion credit facility which was due to maturity in November 2011. The Group's financial debt now comprises:
- EUR1.6 billion senior unsecured credit facility, with maturity ending in June 2013, issued by Eutelsat Communications; - EUR300 million senior unsecured revolving credit facility (undrawn as of June 30, 2010), with maturity ending in June 2013, issued by Eutelsat Communications; - EUR850 million senior unsecured bonds bearing coupon of 4.125%, with maturity ending in March 2017, issued by Eutelsat SA; - EUR450 million senior unsecured revolving credit facility (undrawn as of June 30, 2010), with maturity ending in March 2015, issued by Eutelsat SA.
Given the refinancing of Eutelsat S.A., average maturity of Eutelsat Communications' debt was extended to 4.8 years as of June 30, 2010, compared with 3.2 years as of June 30, 2009.
The average cost of debt drawn by the Group decreased to 3.61% (after hedging) in 2009-2010 compared with 4.15% in 2008-2009, reflecting lower interest rates.
CONTINUATION OF IN-ORBIT renewal and expansion programME
Eutelsat continued to implement its investment programme with seven satellites in construction and scheduled for launch over the coming three years. Its objective is to increase fleet capacity by 25% over this period and to renew five satellites coming to their end of life.
The Group has selected Thales Alenia Space, EADS Astrium and Space Systems/Loral to build, respectively, the W6A, W5A and EUROBIRD(TM) 2A (in partnership with ictQATAR) satellites which are expected to be launched in 2012-2013:
- W6A: its mission will be to replace the W6 satellite and increase by more than 50% the resources available at 21.5 degrees East, a core neighbourhood anchored for data, professional video and government services across Europe, North Africa, the Middle East and Central Asia; - W5A: its mission will be to replace the W5 satellite and more than double resources available at 70.5 degrees East. It will be used for a range of professional applications that include government services, broadband access, GSM backhauling and professional video exchanges in Europe, Africa and Central and South-East Asia.; - EUROBIRD(TM) 2A: being built in the framework of a partnership with ictQATAR, representing the state of Qatar, its mission will be to replace EUROBIRD(TM) 2 satellite at 25.5 degrees East. Its payload of 46 transponders in Ku and Ka bands will be shared with ictQATAR.
The launch of the W3B and KA-SAT satellites are scheduled respectively for September and November 2010:
- W3B: will be launched at 16 degrees East, where its initial mission will be to renew and double capacity available at this position in order to support the development of digital TV in Central and Eastern Europe and French-speaking Indian Ocean islands, as well as open new resources for data services over Africa; - KA-SAT: this multi-beam satellite will offer competitive consumer and professional broadband solutions and support development of local and regional TV in Europe and in the Mediterranean Basin. It will be equipped with unmatched Ka-band capacity in Europe, in a frequency band which is complementary to the Ku-band.
The W3C and ATLANTIC(TM) BIRD 7 satellites are under construction with launches scheduled in fiscal year 2011-2012:
- W3C will replace W3B satellite at 16 degrees East allowing the latter to be relocated at 7 degrees East where it will be collocated with the W3A satellite. This configuration will enable Eutelsat to offer significantly enhanced security from 7 degrees East for clients requesting this service, and to increase operational transponders at this neighbourhood by more than 50 per cent.; - ATLANTIC BIRD(TM) 7: its mission will be to replace the ATLANTIC BIRD(TM) 4A satellite at 7 degrees West, a key neighbourhood for digital broadcasting markets in the Middle East and North Africa, which Eutelsat operates in close collaboration with the Egyptian satellite operator Nilesat.
DISTRIBUTION TO SHAREHOLDERS OF 62% OF GROUP SHARE OF NET INCOME
The July 29, 2010 Board of Directors decided to submit to the approval of shareholders at the November 9, 2010 AGM the distribution of 0.76 euro per share, compared with 0.66 euro for fiscal year 2008-2009.
This amount which represents an increase of 15% over the previous year and a pay-out ratio of 62%, demonstrating Eutelsat's willingness to regularly offer its shareholders an attractive remuneration.
MEDIUM-TERM OUTLOOK: GROWTH, PROFITABILITY AND VISIBILITY
Solid Medium-term growth outlook
The Group now targets revenues in excess of EUR1.120 billion for fiscal year 2010-2011 and a 3-year CAGR above 7% over the next three fiscal years 2010-2011 to 2012-2013. This increase is consistent with the 25% fleet capacity expansion (including KA-SAT) planned over the same period by the investment programme described above.
Objective of high level profitability
Given the excellent performance achieved in 2009-2010, the Group is adjusting its profitability objectives: it targets EBITDA margin above 77% for each fiscal year until June 2013 - against the objective announced in July 2009 of around 77% - with EBITDA above EUR875 million for fiscal year 2010-2011.
Active and targeted investment policy
With the aim of leveraging its unique positioning in Western Europe and in the rapidly growing markets of its Second Continent, the Group will pursue an active and targeted investment policy with average capital expenditure of EUR450 million per annum over the period fiscal years 2011 - 2013, to finance the acquisition and launches (including insurance) of the seven satellites listed above.
Sound financial structure
The Group intends to maintain a sound financial structure targeting a net debt to EBITDA ratio lower than 3.5x, in order to keep its investment grade credit ratings attributed by Moody's and Standard & Poor's.
Attractive shareholder remuneration
Over the period fiscal years 2011 - 2013, the Group is committed to share its profits with its shareholders targeting a pay-out ratio in the range of 50% to 75%.
In June 2010, the Board of Directors of Eutelsat Communications co-opted two new directors:
- Francisco Reynes is Chief Executive Officer of Abertis, which he joined in May 2009 from the post of Managing Director of Criteria CaixaCorp, the investor holding company of la Caixa, Europe's largest savings bank. He replaces Carlos Sagasta Reussi who resigned; - Olivier Rozenfeld, board member and former financial director of Iliad Group. He began his career in international finance at Merrill Lynch and Goldman Sachs at their London and New York offices. He is an independent director and replaces Pier Francesco Guarguaglini who resigned.
Both nominations will be submitted for approval to the next Ordinary General Meeting of Shareholders. With these two new appointments, the Board of Eutelsat Communications comprises 11 directors, including two independent directors.
Consolidated accounts are available at http://www.eutelsat.com in Investors section
Results presentation meeting to Analysts and Investors
Eutelsat Communications will hold an analysts and investors meeting on Friday July 30, 2010 to present its financial results for the full year 2009-2010. The meeting will take place at Group headquarters, 70 rue Balard, 75015 Paris, starting at 10am.
The call-in numbers for audio (French and English) are 01-70-99-42-66 (from France) and +44-20-7138-0824 (from abroad).
A replay will be available from July 30, 2010 from 2pm (Paris time) to August 5, 2010 midnight (Paris time), by dialling +33-01-74-20-28-00 (from France), access code: 7491462#, or +44-207-111-1244 (from abroad), access code: 6074112#.
Conference call in English
Eutelsat Communications will also hold a conference call in English for analysts and investors on July 30, 2010. The call will begin at 3:30pm Paris time (New York: 9:30am, London: 2:30pm).
This conference call will be webcast live from the home page of the Investor Relations section at www.eutelsat.com. It can also be accessed via the following telephone numbers:
- +33-01-70-99-42-70 (from France) - +44-207-138-0826 (from Europe) - +1-212-444-0481 (from the United States).
A replay of the call will be available from July 30, 2010 at 8:00pm (Paris time) to August 5, 2010 midnight (Paris time), by dialling:
- +33-01-74-20-28-00 (from France) - +44-207-111-1244 (from Europe) - +1-347-366-9565 (from the United States).
Access code: 1714998#.
A presentation and consolidated accounts will be available on the Group's website (http://www.eutelsat.com) from 7:30am (Paris time) on July 30, 2010.
The financial calendar below is provided for information purposes only. It is subject to change and will be regularly updated.
- November 4, 2010: financial report for first quarter ended September, 30, 2010. - November 9, 2010: Annual Shareholders Meeting. - February 17, 2011: earnings for the first half ended December 31, 2010. - May 10, 2011: financial report for third quarter ended March 31, 2011. - July 28, 2011: earnings for the full year ended June 30, 2011
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding company of Eutelsat S.A.. With capacity commercialised on 26 satellites that provide coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, Eutelsat is one of the world's three leading satellite operators in terms of revenues. At 30 June 2010, Eutelsat's satellites were broadcasting more than 3,600 television channels. More than 1,100 channels broadcast via its HOT BIRD(TM) video neighbourhood at 13 degrees East which serves over 120 million cable and satellite homes in Europe, the Middle East and North Africa. The Group's satellites also serve a wide range of fixed and mobile telecommunications services, TV contribution markets, corporate networks, and broadband markets for Internet Service Providers and for transport, maritime and in-flight markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates access to high speed internet services through teleports in France and Italy that serve enterprises, local communities, government agencies and aid organisations in Europe, Africa, Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries employ nearly 661 commercial, technical and operational employees from 28 countries.
http://www.eutelsat.com Appendix Quarterly revenues by business application (financial year 2008-2009) Three months ended In millions of euros 30/09/2008 31/12/2008 31/03/2009 30/06/2009 Video Applications 166.7 169.8 172.3 170.8 Data & Value-Added Services 41.1 43.2 42.3 46.4 Multi-usage 15.6 19.3 19.7 20.8 Other 3.2 4.5 2.2 0.8 Sub-total 226.7 236.8 236.5 238.8 One-off revenues - - - 1.8 Total 226.7 236.8 236.5 240.5 Quarterly revenues by business application (financial year 2009 -2010) Three months ended In millions of euros 30/09/2009 31/12/2009 31/03/2010 30/06/2010 Video Applications 180.8 180.6 189.6 191.0 Data & Value-Added Services 47.7 48.7 52.0 55.3 Multi-usage 22.9 21.5 25.1 28.6 Other 1.7 1.0 0.7 (4.0) Sub-total 253.0 251.8 267.4 270.9 One-off revenues - 3.2 0.9 - Total 253.0 255.0 268.3 270.9
Note: At a constant euro-dollar exchange rate, revenue growth would have been 12.5% in Q4 2009-2010 compared with Q4 2008-2009. Excluding one-off revenues and at a constant euro-dollar exchange rate, growth would have been 13.3% in Q4 2009-2010 compared with Q4 2008-2009.
Revenue breakdown by application (in percentage of revenues)* Twelve months ended June 30 2009 2010 Video Applications 73.3% 71.1% Data & Value-Added Services 18.6% 19.5% .......of which Data Services 14.4% 15.1% .......of which Value-Added Services 4.2% 4.4% Multi-usage 8.1% 9.4% Total 100% 100%
*excluding other revenues and one-off revenues (EUR12.5 million in FY 2008-2009 and EUR3.4 million in FY 2009-2010)
Change in net debt (in millions of euros) Twelve months ended June 30 2009 2010 Change (%) Net cash flow from operating activities 654.7 698.3 +6.7% Capital expenditure (416.6) (494.4) +18.7% Insurance indemnities on property and 120.5 - equipment Operating free cash flow 358.7 203.9 -43.2% Interest and other fees paid, net (102.8) (75.4) -26.6% Acquisition of minority interests and others (7.5) (6.7) - Distributions to shareholders (including (141.7) (156.2) +10.2% minority interests) Non-recurring expenses related following - (54.1) - Eutelsat SA refinancing Other (11.1) (9.3) - Decrease (increase) in net debt 95.6 (97.8) Estimated satellite launch schedule Satellite Estimated launch Transponders W3B September 2010 56 Ku KA-SAT November 2010 > 80 Ka beams W3C June - September 2011 56 Ku ATLANTIC BIRD(TM) 7 September - December 2011 50 Ku W6A July - September 2012 40 Ku W5A October - December 2012 48 Ku EUROBIRD(TM) 2A H1 2013 32 Ku / 14 Ka
Note: Satellites generally enter into service one to two months after launch.
 EBITDA is defined as operating income before depreciation and amortisation, impairments and other operating income/charges (dilution profits (losses), insurance compensations, etc.).  Excluding non-recurring items, operating free cash flow was up 6.4%.  Non-recurring revenues comprise late delivery penalties and outage penalties  Percentage calculated excluding "other revenues" and "one-off revenues"  Eutelsat defines its 1st continent (Western Europe) and its 2nd continent which comprises: Central and Eastern Europe, Russia, Africa, the Middle East and Central Asia.  At constant euro-dollar exchange rate, revenue growth would have been 33.1%.  Formerly W1 which was redeployed to 4 degrees East.  Number of transponders in stable orbit, excluding spare capacity.  Number of transponders leased on satellites in stable orbit.  Backlog represents future revenues from capacity lease agreements (including contracts for satellites yet to be delivered). These capacity lease agreements can be for the entire operational life of the satellites.  A leading satellite operator for Hispanic markets, of which Eutelsat holds 27.69%  Excluding non-recurring items, the operating proft would have grown by 13.4%.  For more detail, please refer to Group interim consolidated accounts at www.eutelsat.com.  Operating expenses is defined as the sum of operating costs and of selling, general & administrative expenses.  Comprises amortisation expense of EUR 44.4 million corresponding to the intangible asset "Customer Contracts and Relationships" identified during the acquisition of Eutelsat S.A. by Eutelsat Communications.  In exchange for the transfer of certain rights in Hispasat.  They include insurance indemnity proceeds related to the W2M satellite (EUR 120.5 million), the non-recurring income of recorded in exchange for certain rights in Hispasat (EUR 25.0 million) and the reimbursement of corporate tax deposit (EUR 21.6 million).  Net debt includes all bank debt, bonds and all liabilities from long-term lease agreements, less cash and cash equivalents and marketable securities (net of bank credit balances).  EUROBIRD(TM) 16, EUROBIRD(TM) 2, W5, W6 and SESAT 1.  It includes the cash settlement of outstanding balance corresponding to the unwinding of interest rate hedging instruments, following the repayment of Eutelsat S.A.'s senior credit facilities, the bond issue premium and fees related to the refinancing operation.
Note : This press release contains unaudited consolidated financial statements prepared under IFRS, adopted by the Board of Directors of Eutelsat Communications on July 29, 2010 and reviewed by the Audit Committee July 28, 2010. These accounts will be subject to the approval of shareholders of Eutelsat Communications at the Annual General Shareholders Meeting of November 9, 2010.
SOURCE Eutelsat Communications