Eutelsat Communications Announces Third Quarter 2006-2007 Revenues

Eutelsat Communications Announces Third Quarter 2006-2007 Revenues

PARIS, May 10/PRNewswire-FirstCall/ --

- Continued Revenue Growth: + 5.4% Compared to Third Quarter 2005-2006

- Increased Visibility: Video Applications Rise to 72%(1) of Year-To-Date
Revenues

- Annual Objectives Raised:

- Fiscal 2006-2007 Revenues Above 815 Million Euros

- EBITDA Margin Increased From 77% to 78%

Eutelsat Communications (Euronext Paris: ETL), one of the world's leading
satellite operators, today reported revenues for third quarter ended March
31st, 2007 and for the first nine months of fiscal 2006-2007.

Revenues by application

Third quarter ended March 31
In millions of euros 2006 2007 Change
Video Applications 132.1 148.8 + 16.7
Data & Value Added Services 42.4 39.2 - 3.1
Multi-usage 17.9 15.1 - 2.8
Other 2.7 2.5 - 0.2
Sub-total 195.1 205.7 + 10.6
Total 195.1 205.7 + 10.6

Commenting on third quarter 2006-2007 revenues, Giuliano
Berretta, Chairman and Chief Executive Officer of Eutelsat Communications,
said:

"Revenue growth in our third quarter confirms the attraction of our
orbital positions in rapidly expanding markets for digital broadcasting and
broadband services in Europe, Russia, the Middle East and Africa. As capacity
demand in these regions maintains its sustained growth, we have continued to
implement a development model which favours visibility and growth, increasing
to 72% the share of Video Applications in total year-to-date revenues. In the
same dynamic, the number of TV channels broadcast by our satellites has
broken the barrier of 2,500, strengthening Eutelsat's position as Europe's
leading satellite operator in video broadcasting markets(2).

In parallel, our Value Added Services posted double digit growth, mainly
driven by demand for broadband in regions with limited coverage from
terrestrial networks. This quarter was also marked by take-up of in-flight
Internet access services for the business jet market in Europe.

Consistent with the roadmap to develop our in-orbit resources, we have
also opened a new position at 4 degrees East through the redeployment of the
EUROBIRDTM 4 satellite, taking to 18 the number of positions operated by our
Group.

With three quarters of the financial year behind us, we are in good
position to increase our revenue objective to more than 815 million euros for
fiscal 2006-2007 and to raise to 78% our EBITDA margin objective which was
initially set at 77%".

Third quarter 2006-2007 revenues analysis

Revenues for third quarter 2006-2007 are 205.7 million euros, up 5.4%
compared to the third quarter of the preceding fiscal year. At constant
exchange rates, revenues show a 7.2% increase.

- Performance for the quarter reflects the Group's determination to grow
Video Applications (72% of third quarter revenues) both in western Europe and
in the Second Continent(3). This segment recorded a 12.7% increase in
revenues compared to the third quarter of last year. Key highlights of this
quarter include:

- The number of channels broadcast by Eutelsat's fleet reached 2,505 at
March 31, 2007, up by 76 channels since December 31, 2006.

- The HOT BIRDTM (13 degrees East) premium video neighbourhood gained new
international channels including Russian information channels RBC-TV and
Vesti 24, the French news channel FRANCE 24, Tunisia's Nessma TV and the
Qatari channel Al-Jazeera Documentary. These new channels contribute to
consolidating the leadership of Eutelsat's HOT BIRDTM position, whose
audience stands at 121 million satellite and cable homes in Europe, the
Middle East and North Africa, of which 47.6 million homes are equipped for
Direct-to-Home reception(4).

- This segment also benefited from sustained demand for capacity from the
Group's Second Continent, notably from the Middle East and Russia to support
development of existing pay-TV platforms and the launch of a new pay-TV offer
in Russia by the Tricolor TV platform.

- Data and Value Added Services (19% of third quarter revenues) were down
by 3.1 million euros compared with third quarter 2005-2006. This decrease
mainly reflects reallocation to Video Applications of capacity previously
leased for Data Services following expiration of corresponding contracts, and
transformation of some short-term contracts to long-term contracts providing
greater visibility. However, decrease of this segment was partially offset by
strong revenue growth from Value Added Services (up 13.9% to 8.5 million
euros).

- Growth of Value Added Services was principally driven by continued
deployment of D-STAR terminals, which deliver broadband access to areas not
covered by terrestrial networks, in particular in Europe and in Africa.

- In addition, Value Added Services recorded during the quarter their
first successes in the market for in-flight Internet access on business jets.
Developed in partnership with Viasat, this service is commercialised in
Europe by Arinc.

- Multi-usage (7% of third quarter revenues) is down 2.8 million euros
compared to third quarter 2005-2006, primarily due to the transfer to Video
Applications of capacity previously leased to Arabsat following the expiry of
the corresponding contract, and to adverse exchange rate fluctuations.
However, revenues increased slightly compared to the previous quarter (+0.3
million euros) owing to conclusion of new government service contracts
activated upon entry into service of the EUROBIRD(TM) 4 satellite (previously
HOT BIRD(TM) 3) at the 4 degrees East position.

Year-to-date 2006-2007 revenues analysis

Compared with the same period of the preceding fiscal year, year-to-date
revenues were up 5.2% at 621 million euros. They include 11.4 million euros
of penalties related to late delivery of the HOT BIRD(TM) 7A satellite. At a
constant exchange rate, revenues were up 6.5%. Excluding one-off revenues and
at a constant exchange rate, growth was 7.7%.

Revenues by application

9 months ended March Change
31
In millions of euros 2006 2007 In millions in %
of euros
Video Applications 387.6 438.6 + 51.0 +13.2%
Data & Value Added 129.0 120.8 -8.2 -6.3%
Services
Multi-usage 51.4 44.5 -6.9 -13.4%
Other 4.7 5.7 +1.0 NA
Sub-total 572.6 609.6 +37.0 +6.5%
Non recurring revenues 17.4 11.4 -6.0 NA
Total 590.0 621.0 + 31.0 +5.2%

Video Applications (72% of revenues(5)) increased by 51 million euros.
This progress is mainly attributable to:

- 384 additional channels on the Group's fleet since June 30, 2006,

- The full effect of the contracts activated following entry into service
in April 2006 of the HOT BIRD(TM) 7A satellite,

- Ongoing expansion of pay-TV platforms in the Group's priority areas of
development in central Europe (Total TV in Serbia, TV Romania), Russia (NTV+
and Tricolor), Turkey (Digiturk) and Africa (MultiChoice Africa),

- Entry into service on July 1, 2006 of ATLANTIC BIRD(TM) 4 at the 7
degrees West position, enabling entry into force of contracts formerly
concluded with operators in the Middle East for video broadcasting.

Data and Value Added Services (19% of total revenues) were down by 8.2
million euros compared with the same period of the preceding financial year,
reflecting partial reallocation to Video Applications of capacity previously
leased for Data Services. This was partly compensated by a 7.8% increase to
23.5 million euros of revenues from Value Added Services. Growth of Value
Added Services was principally driven by continued deployment in Europe and
emerging markets, notably Africa, of D-STAR terminals, which allow for
broadband access in areas not covered by terrestrial networks.

Evolution of Multi-usage (7% of total revenues) mainly reflects partial
reallocation to Video Applications of capacity previously leased to Arabsat
following expiration of a contract, and unfavourable US$/EUR currency
fluctuations. However, this segment benefited from the renewal of all
government service contracts which had matured during the period, and from
the recent entry into force of new contracts following the arrival of the
EUROBIRDTM 4 satellite at 4 degrees East.

Changes in the Group's satellite fleet

- Entry into service of EUROBIRD(TM) 4

On March 15, 2007, the Group announced the entry into service of the
EUROBIRD(TM) 4 satellite at the 4 degrees East location for a new commercial
mission. This redeployment allows Eutelsat to open a new orbital position,
taking to 18 the number of locations used by the Group. From 4 degrees East,
EUROBIRD(TM) 4 provides coverage of Europe, North Africa, the Middle East and
central Asia in Ku-band frequencies.

Outlook:

Taking into account the strength of its operating performance for the
first nine months of the year, the Group is raising its revenue objective for
2006-2007 to above 815 million euros(6) , compared to the initially disclosed
objective of above 800 million euros.

The Group is also raising to 78% its EBITDA margin objective which was
initially set at 77% for the fiscal year ending June 30, 2007.

The Group will comment on medium-term outlook on the release of its
annual results, on July 26, 2007.

Financial calendar:

Fiscal 2006-2007 results: July 26, 2007

About Eutelsat Communications

Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is
the holding company of Eutelsat S.A.. With capacity commercialised on 23
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 31 March 2007, Eutelsat's satellites were broadcasting
over 2,500 television channels and 1,000 radio stations. More than 1,000
channels broadcast via its HOT BIRD(TM) video neighbourhood 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 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 515 commercial, technical and operational experts
from 27 countries.

www.eutelsat.com

For further information

Press:
Vanessa O'Connor Tel: +33-1-53-98-38-88 voconnor@eutelsat.fr
Frederique Gautier Tel: +33-1-53-98-38-88 fgautier@eutelsat.fr

Investors:
Gilles Janvier Tel:+33-1-53-98-35-35 investors@eutelsat-
communications.com

(1) Percentage calculated on the basis of revenues excluding
non-recurring revenues

(2) Source: 2007 Northern Sky Research Study : Global assessment of
satellite demand

(3) Central and eastern Europe, Russia, central Asia, Turkey, Middle
East, Africa

(4) Source: Eutelsat's 2-year Survey of cable and satellite penetration,
published January 19, 2007. Survey conducted in 42 countries

(5) Percentage calculated on the basis of revenues excluding
non-recurring revenues

(6) Including 11.4 million euros of penalties related to satellite late
delivery booked as one-off revenue in the second quarter 2006-2007.

Source: Eutelsat Communications

For further information: Press: Vanessa O'Connor, Tel: +33-1-53-98-38-88, voconnor@eutelsat.fr; Frederique Gautier, Tel: +33-1-53-98-38-88, fgautier@eutelsat.fr; Investors: Gilles Janvier, Tel:+33-1-53-98-35-35, investors@eutelsat-communications.com

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