Eutelsat Communications Third Quarter 2010-2011 Revenues Increase 10% Full Year 2010-2011 Revenue Expectations Revised Upward
PARIS, May 10, 2011 /PRNewswire-FirstCall/ --
- Strong Third Quarter 2010-2011 Revenue Growth of 10% to EUR295.2 Million
- Continued Growth in all Activities: Double-digit Increases for Data and Value-Added Services and Multi-usage
- Nine-month Revenues up 12.2% to EUR871.0 Million
- Full Year 2010-2011 Revenues Revised Upward: Now Expected to be Above EUR1,160 Million
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 March 31, 2011.
Revenues by business application:
3rd quarter ended Change 9 months ended Change
March 31 March 31
In millions of euros 2010 2011 in % 2010 2011 In %
Video Applications 189.6 198.5 +4.7 551.0 590.5 +7.2
Data & Value Added 52.0 58.9 +13.3 148.4 175.7 +18.4
Services
Multi-usage 25.1 32.6 +29.9 69.6 90.0 +29.3
Other revenues 0.7 3.2 NM 3.4 10.1 NM
Subtotal 267.4 293.2 +9.6 772.3 866.3 +12.2
Non-recurring revenues 0.9 2.0 NM 4.0 4.7 NM
Total 268.3 295.2 +10.0 776.3 871.0 +12.2
Commenting on the Group's third quarter 2010-2011 revenues, Michel de Rosen, CEO of Eutelsat Communications, said:
"We are delighted to report third quarter revenue growth of 10%. This growth was driven by further strong momentum in all our markets; an exceptionally strong contribution from our Multi-usage activity as demand from government agencies was high; and by the continued optimisation of our in-orbit resources, with the fill rate standing at above 90% since 31st December 2010. We are raising our objective for the full year and now expect to deliver revenues of over EUR1,160 million. Looking ahead, demand remains strong in all of our regions and our significant fleet expansion plan in the coming years will ensure that we are well-positioned to capture this growth."
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 March 31, 2010. The share of each application as a percentage of total revenues is calculated excluding "Other revenues and Non-recurring revenues".
Eutelsat Communications reported excellent third quarter and nine month revenues, with growth fuelled by all of its activities, which continued to benefit from the in-orbit resources launched over the past two years.
Revenues rose 10% (9.5% at constant currencies) in the third quarter. This growth is a reflection of the sustained high fill rate of its fleet, at over 90% since December 31, 2010; a strong commercial performance; as well as excellent operational efficiency which helped to optimise the allocation of orbital resources to the most dynamic markets. The quarter also benefited from "other" and "non-recurring" revenues, notably, the favourable effect from currency hedging contracts and a late satellite delivery penalty credit. The Video Applications business grew by nearly 5%, while Data and Value-Added Services and Multi-usage each reported double-digit growth, despite comparisons to a strong previous year.
VIDEO APPLICATIONS (68.4% of revenues[1])
Revenues from Video Applications rose 4.7% to EUR198.5 million.
Eutelsat continued to execute its strategy of reinforcing video neighbourhoods throughout its coverage zone, further underscoring the importance that satellites hold in the broadcast value chain.
The Group's flagship video neighbourhood, HOT BIRD(TM), occupying the orbital position 13degrees East, used by 15 television platforms in Europe, parts of the Middle East and North Africa, reinforced its leadership position in the third quarter. Contracts signed during the quarter included one with Italy's pre-eminent network operator, to support broadcast of its TV channels via the DTT (Digital Terrestrial Television) network, as Italy transitions to a fully digital broadcast environment.
Two other key video neighbourhoods attracted new customers. At the 16degrees East position, notably covering Central Europe, the leading telecom operator in Croatia selected Eutelsat to optimise the footprint of its TV platform in areas beyond its DSL network, particularly in the Adriatic archipelago. Elsewhere, one of Russia's principal suppliers of uplinking services for pay-TV platforms and channels selected Eutelsat's video neighbourhood at 36degrees East, the leading orbital position serving Russia, to launch a new platform.
Video Applications continues to benefit from positive long-term global trends including the growing number of homes equipped for DTH-TV (Direct-to-Home TV) and the increasing number of TV channels worldwide. At March 31, 2011, Eutelsat's satellites carried 3,835 channels, up from 3,539, a year earlier, an increase of 8.4%. The number of HD channels broadcast by the fleet stood at 210, up from 120, an increase of 75% over the previous twelve months.
DATA and VALUE-ADDED SERVICES (20.3% of revenues)
Revenues from Data and Value-Added Services stood at EUR58.9 million, rising 13.3%.
As in previous quarters, Data Services revenues delivered double-digit growth (+15.6%) to EUR47.3 million, highlighting the quality of Eutelsat's coverage of strategic information routes between North America, Europe, Africa, Central Asia and the Middle East.
New commercial activity, particularly on four of Eutelsat's satellites, reflected the continued strong demand for Data Services:
- W2A at 10degrees East, principally for interconnectivity services addressing GSM networks in Africa and enterprise networks connecting Europe and the Middle East;
- W3A at 7degrees East, mainly for IP backbone connectivity and GSM backhaul in Africa, as well as enterprise networks linking Africa and Europe;
- W7 at 36degrees East, for its large pan-European spot directly linking Europe to Central Asia;
- W6 at 21.5degrees East, for IP backbone connectivity and two-way communication services between Southeast Asia, North Africa, the Middle East and Europe.
Value-added Services recorded growth of 4.7% to EUR11.5 million. This activity covers broadband access solutions for consumers and professionals. The new generation Tooway(TM) broadband offer is on track for availability by mid-2011 with the entry into service of Eutelsat's KA-SAT, Europe's first High Throughput Satellite.
MULTI-USAGE (11.3% of revenues)
Revenues from Multi-usage services rose 29.9% to EUR32.6 million on the back of stronger-than-anticipated demand from governments, notably to serve regions in Central Asia, the Middle East and North Africa, with new short term contracts signed. The Eutelsat fleet is particularly well-placed to respond to periodic peaks in demand from users of Multi-usage services in these regions.
OTHER AND NON-RECURRING REVENUES
Other revenues of EUR3.2 million related primarily to gains on foreign exchange hedging contracts as well as some technical service revenues. Non-recurring revenues included indemnities with respect to penalties for late satellite delivery.
YEAR-TO-DATE REVENUE (9 months ending March 31, 2011) AND FY 2010-2011 OUTLOOK
At EUR871.0 million, year-to-date revenues were up 12.2% (10.2% at constant currencies) compared to the same period of the previous fiscal year.
Following the strong performance of the third quarter, particularly in Multi-usage, as well as the sustained dynamism of Eutelsat's markets over the first nine-months, the Group now expects its full year 2010-2011 revenues to be above EUR1,160 million, compared to the previous objective of above EUR1,120 million.
IN-ORBIT RENEWAL AND EXPANSION PROGRAMME -- DRIVING LONGER TERM GROWTH
Pursuing an ambitious expansion strategy in targeted, dynamic markets, the Group will benefit from the entry into service of three satellites: KA-SAT (launched on December 26, 2010), W3C and ATLANTIC BIRD(TM) 7, both due to be launched later in 2011.
An additional four satellites are currently under construction: W6A, W5A, EUROBIRD(TM) 2A and W3D. These satellites are scheduled to be launched between September 2012 and June 2013.
RECENT EVENTS
- Eutelsat initiated a request for arbitration on April 6, 2011, with the International Chamber of Commerce (ICC) against Deutsche Telekom and Media Broadcast to enforce its rights at the orbital position 28.5degrees East. The rights to certain frequencies at this orbital position are currently exploited by Eutelsat within the context of an agreement dating from June 1999 between Eutelsat and Deutsche Telekom (which has since transferred its satellite activity to Media Broadcast).
- Eutelsat Communications signed a Memorandum of Understanding (MOU) on May 10, 2011 in Moscow with the Russian Satellite Communications Company (RSCC), Russia's state satellite operator to expand their longstanding strategic partnership. According to the MOU, a new satellite will be launched in 2015 to 36degrees East, the most popular neighbourhood for satellite TV in Russia. The new spacecraft will be designed to optimise capacity at a multi-satellite position, delivering new resources to both RSCC and Eutelsat for consumer broadcasting and multimedia services within a footprint of European Russia to the Urals. It will also carry a payload with a footprint over sub-Saharan Africa to provide long-term continuity for services currently supplied at 36degrees East by W4 and capacity for further expansion.
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 28, 2011: earnings for the full year ended June 30, 2011
- November 3, 2011: financial report for first quarter ended September 30, 2011
- November 8, 2011: Annual General Shareholders Meeting
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding company of Eutelsat S.A. With capacity commercialised on 27 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 March 31, 2011, Eutelsat's satellites were broadcasting more than 3,800 television channels to over 200 million cable and satellite homes in Europe, the Middle East and 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 700 commercial, technical and operational employees from 28 countries.
http://www.eutelsat.com
Appendix
Revenue breakdown by application (in percentage of revenues)*
3 months ended 31 9 months ended 31
March March
2010 2011 2010 2011
Video Applications 71.1% 68.4% 71.7% 69.0%
Data & Value-Added Services 19.5% 20.3% 19.3% 20.5%
........of which Data Services 15.3% 16.3% 15.0% 16.4%
.......of which Value-Added 4.1% 4.0% 4.3% 4.1%
Services
Multi-usage 9.4% 11.3% 9.0% 10.5%
Total 100% 100% 100% 100%
*excluding other revenues and one-off revenues (EUR1.6 million in Q3 2009-2010, EUR5.2 million in Q3 2010-2011 and EUR7.4 million year-to-date 2009-2010, EUR14.8 million year-to-date 2010-2011 ).
Quarterly revenues by business application
2009 - 2010 2010-2011
In millions of euros Q1 Q2 Q3 Q4 Q1 Q2 Q3
Video Applications 180.8 180.6 189.6 191.0 195.5 196.5 198.5
Data & Value-Added 47.7 48.7 52.0 55.3 58.9 58.0 58.9
Services
Data Services 36.9 37.3 40.9 42.2 47.2 45.9 47.3
Value-Added Services 10.7 11.5 11.0 13.1 11.7 12.1 11.5
Multi-usage 22.9 21.5 25.1 28.6 28.8 28.6 32.6
Other Revenues 1.7 1.0 0.7 (4.0) 2.4 4.5 3.2
Subtotal 253.0 251.8 267.4 270.9 285.6 287.5 293.2
Non-recurring Revenues -- 3.2 0.9 -- -- 2.7 2.0
Total 253.0 255.0 268.3 270.9 285.6 290.2 295.2
Estimated satellite launch schedule
Satellite Estimated launch Transponders
W3C September 2011 53 Ku/3 Ka
ATLANTIC BIRD(TM) 7 September - December 50 Ku
2011
W6A September - November 40 Ku
2012
W5A October - December 2012 48 Ku
W3D January - March 2013 53 Ku/3 Ka
EUROBIRD(TM) 2A* April - June 2013 16 Ku/7 Ka
Note: Satellites generally enter into service one to two months after launch.
* Partnership satellite with ictQATAR, transponders indicated for Eutelsat portion only
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[1] Revenues (EUR 290.0 million Q3 2010-11 and EUR 856.2 million 9-months 2010-11) exclude "Other revenues" and "Non-recurring revenues".
SOURCE Eutelsat Communications
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