Eutelsat Communications Third Quarter 2011-2012 Revenues

Eutelsat Communications Third Quarter 2011-2012 Revenues

PARIS, May 10, 2012/PRNewswire-FirstCall/ --


- Revenues up 4.6% to EUR308.7 million (+4.9% at constant currency)
- Sustained growth in Video Applications (Group's largest activity): + 6.3%
- Good performance by Value-Added Services (+12.0%) offset decline in Data
Services (-4.9%)
- Multi-usage up 13.3%
- Nine-month revenues up 4.6% to EUR911.2 million (+5.6% at constant
currency)
- Strong backlog of EUR5.36 billion
- Full year 2011-2012 revenues now expected at around EUR1,220 million, with an
EBITDA target around EUR955 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, 2012.



Revenues by business application:




3rd quarter ended 9 months ended
March 31 Change March 31 Change
In millions of euros 2011 2012 In % 2011 2012 In %
Video Applications 198.5 211.0 +6.3 590.5 614.3 +4.0
Data & Value-Added
Services 58.9 57.9 -1.6 175.7 175.7 +0.0
Multi-usage 32.6 37.0 +13.3 90.0 111.4 +23.9
Other revenues 3.2 2.8 -11.9 10.1 6.1 -39.5
Subtotal 293.2 308.7 +5.3 866.3 907.7 +4.8
Non-recurring revenues 2.0 - NM 4.7 3.5 -25.0
Total 295.2 308.7 +4.6 871.0 911.2 +4.6




Commenting on the Group's third quarter 2011-2012 revenues, Michel de Rosen, CEO of
Eutelsat Communications, said:



"Third quarter revenues were up 4.6% with growth underpinned by a strong performance
from our largest business, Video Applications, which rose 6.3%. Eutelsat continues to
benefit from a resilient business model, while at EUR5.36 billion, our order backlog
assures our long-term visibility.



Some factors, however, are proving more challenging, notably a more competitive
environment in the Balkans and in Africa, partial delays in the rollout of Ka-band
professional services, and a significant slowdown in the Multi-usage activity following
the latest contract renewal campaign.



As a result of these headwinds, we now expect revenues for the full year to be in the
region of EUR1,220 million, compared with our previous estimate of above EUR1,235 million.
EBITDA should be around EUR955 million, implying a robust EBITDA margin of 78%."



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, 2011. 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 EUR308.7 million for the third quarter,
up 4.6% (4.9% at constant currency). For the 9-month period ending March 31, 2012, Group
revenues stood at EUR911.2 million, up 4.6% (5.6% at constant currency).



VIDEO APPLICATIONS (69.0% of revenues[1])



Revenues from Video Applications, Eutelsat's main business activity, rose 6.3% to
EUR211.0 million, driving the Group's overall revenue performance.



The video business reported strong growth fuelled primarily from new in-orbit capacity
that became operational in late calendar 2011:




- At 7degree(s) West, the leading video neighbourhood for the Middle East
and North Africa, where new transponders were leased for long-term contracts to
flagship customers in the region on EUTELSAT 7 West A launched in September 2011;
- At 16degree(s) East, the leading video neighbourhood serving Central Europe
and Indian Ocean Islands, with new contracts signed on EUTELSAT 16A, entered into
service in November 2011, despite competitive pressure in the Balkans.




Other video neighbourhoods also contributed to the growth:




- At 13degree(s) East, the Group's HOT BIRD premium video neighbourhood for
Extended Europe[2], generated revenues from renewal contracts from solid, long-time
customers in Europe's largest Direct to Home TV markets, notably Italy and Poland;
- At 36degree(s) East, the Group's premium video neighbourhood for Russia and
sub-Saharan Africa, where EUTELSAT 36A and EUTELSAT 36B benefited from the activation
of additional transponders within the framework of contracts signed with Russian
pay-TV operators.




The third quarter also saw the launch of the first TV broadcasting service using
Eutelsat's KA-SAT satellite following a contract with Ireland's national broadcaster, RTE.
This satellite was selected by RTE for its unique architecture and capability to broadcast
free-to-air digital terrestrial television exclusively within Irish borders to homes not
served by terrestrial networks through a spot beam centred over Ireland.



Video Applications should continue to benefit from positive long-term global trends,
including continuous take-up of satellite TV channels and the increase in High Definition
penetration. At March 31, 2012, Eutelsat's satellites were broadcasting 4,252 channels, up
from 3,835 a year earlier, showing an increase of 11% (+417 channels). The number of HD
channels stood at 333, up from 210, showing an increase of 59% and an HD penetration rate
of 8% compared to 6% a year ago.



DATA and VALUE-ADDED SERVICES (18.9% of revenues)



Revenues from Data and Value-Added Services stood at EUR57.9 million, down 1.6%.



Data Services revenues stood at EUR45.0 million (-4.9%). This decline reflects the
shift in allocation of revenues from Data Services to Video Applications based on new
end-user information from distributors and a more competitive environment in sub-Saharan
Africa. Without the reallocation, the decline would have been 2.3%.



The quarter also reflected the limited availability of capacity allocated to Data
Services at established orbital positions following the successful ramp up of capacity on
EUTELSAT 10A and EUTELSAT 36B in the 2009 and 2010 period, which contributed to double
digit growth of Data Services over several consecutive quarters.



This activity will benefit from the arrival of two satellites delivering replacement
and expansion capacity (EUTELSAT 21B and EUTELSAT 70B) to be launched by the end of
calendar 2012.



Value-added Services recorded growth of 12.0% to EUR12.9 million. In this segment the
Group offers turnkey solutions combining leasing capacity, specific on-ground services and
equipment, notably to provide broadband access to consumers, enterprises and the maritime
market. The quarter experienced a promising take-up of Tooway(TM) terminals and services
to consumer markets, which more than compensated the decline of D-Star activity and the
partial delay in the roll-out of professional Ka-band services.



MULTI-USAGE (12.1% of revenues)



Revenues from Multi-usage services rose 13.3% to EUR37.0 million.



This activity benefited from strong commercial performance from contracts signed in
2011. However, the February/March 2012 contract renewals campaign proved more challenging
than previous ones, resulting in a decrease in volume relative to the high levels of
previous years in certain regions. Moreover, following the high level of activity in the
previous quarters, the fleet had limited available capacity for coverage in the regions of
highest demand, a situation which will also benefit from the launch of EUTELSAT 21B and
EUTELSAT 70B.



OTHER AND NON-RECURRING REVENUES



Other revenues of EUR2.8 million related primarily to revenues from technical service
contracts with partners, and foreign exchange hedging contracts.



LONG TERM VISIBILITY ASSURED - STRONG STABLE BACKLOG



The order backlog remained strong at EUR5.36 billion, which reinforces the long-term
visibility on revenues and operating cash flows. At March 31, 2012, the backlog
represented a weighted average residual life of contracts of 7.0 years. The backlog is
equivalent to approximately 4.6 times annual revenues for Full Year 2010-2011.



YEAR-TO-DATE REVENUE (9 months ending March 31, 2012) AND FULL YEAR 2011-2012 OUTLOOK



At EUR911.2 million, year-to-date revenues were up 4.6% (5.6% at constant currency)
compared to the same period of the previous fiscal year.



Full year 2011-2012 revenues are now expected to be around EUR1,220 million, compared
to the previous objective of above EUR1,235 million. The Group also refined its EBITDA
target, and now expects EBITDA for the year to be around EUR955 million rather than above
EUR955 million for the financial year.



The Group will update its medium-term outlook on the occasion of its Full Year
results, on July 30, 2012.



IN-ORBIT RENEWAL AND EXPANSION PROGRAMME - DRIVING LONGER TERM GROWTH



During the quarter, Eutelsat Communications continued to pursue its investment
programme of in-orbit resources. This programme includes: EUTELSAT 21B, EUTELSAT 70B,
EUTELSAT 25B, EUTELSAT 7B, EUTELSAT 3B and EUTELSAT 9B, all of which are currently under
construction.



These six satellites are scheduled to be launched between second half 2012 (calendar)
and the end of 2014 (calendar). Their mission will be to replace existing satellites and
to expand the Group's capacity in markets with the most significant growth potential.



Recent EVENTS



On February 10, 2012, EUTELSAT 4A (ex-EUROBIRD 4A) reached the end of its life and was
successfully de-orbited from its 4degree(s) East orbital position.



* * *



Third Quarter revenues presentation for analysts and investors



Eutelsat Communications will hold a conference call in English for analysts and
investors on Thursday May 10, 2012 starting at 6.30pm Paris time(London : 5:30pm, New York
: 12:30pm). To connect please dial:



+33-(0)1-70-99-32-12 (from France)



+44-(0)20-7162-0177 (from the U.K)



+1-334-323-6203 (from the United States)



Access code: 916412#



Live presentation by webcast, via this link:



http://wcc.webeventservices.com/r.htm?e=456786&s=1&k=FD29899524C4A9E9ACAC12D8B6578E16&cb=blank



Instant replay number from May 10, 10:00pm to May 17, midnight (Paris time). To
connect please dial: +33-(0)1-70-99-35-29 (from France)



+44-(0)20-7031-4064 (from the U.K)



+1-954-334-0342 (from the United States)
Access code: 916412#



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, 2012: earnings for the full year ended June 30, 2012
- October 25, 2012: financial report for first quarter ended September 30, 2012
- November 8, 2012: 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 28 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. As of 31 March 2012, Eutelsat's satellites were
broadcasting more than 4,250 television channels. More than 1,100 channels are broadcast
via its HOT BIRD video neighbourhood at 13 degrees East alone 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 just over 750 commercial, technical and
operational professionals. This culturally diverse staff includes employees from 30
countries. http://www.eutelsat.com



Appendix



Revenue breakdown by application (in percentage of revenues)*




3 months ended 31 9 months ended 31
March March
2011 2012 2011 2012
Video Applications 68.4% 69.0% 69.0% 68.1%
Data & Value-Added Services 20.3% 18.9% 20.5% 19.5%
........of which Data Services 16.3% 14.7% 16.4% 15.5%
.......of which Value-Added
Services 4.0% 4.2% 4.1% 4.0%
Multi-usage 11.3% 12.1% 10.5% 12.4%
Total 100% 100% 100% 100%




*excluding other revenues and one-off revenues (EUR5.2 million in Q3 2010-2011, EUR2.8
million in Q3 2011-2012 and EUR14.8 million year-to-date 2010-2011, EUR9.6 million
year-to-date 2011-2012).



Quarterly revenues by business application




2010-2011 2011-2012
In millions of euros Q1 Q2 Q3 Q4 Q1 Q2 Q3
Video Applications 195.5 196.5 198.5 195.9 198.2 205.1 211.0
Data & Value-Added
Services 58.9 58.0 58.9 58.3 59.6 58.2 57.9
Data Services 47.2 45.9 47.3 47.6 48.3 46.8 45.0
Value-Added Services 11.7 12.1 11.5 10.7 11.3 11.4 12.9
Multi-usage 28.8 28.6 32.6 35.6 36.2 38.2 37.0
Other Revenues 2.4 4.5 3.2 7.3 1.3 2.0 2.8
Subtotal 285.6 287.5 293.2 297.1 295.4 303.6 308.7
Non-recurring Revenues - 2.7 2.0 - - 3.5 -
Total 285.6 290.2 295.2 297.1 295.4 307.1 308.7




Estimated satellite launch schedule




Estimated launch
Satellite (calendar year) Transponders
EUTELSAT 21B Q4 2012 40 Ku
EUTELSAT 70B Q4 2012 48 Ku
EUTELSAT 7B Q1 2013 53 Ku/3 Ka
EUTELSAT 25B* H1 2013 16 Ku/7 Ka
EUTELSAT 3B H1 2014 51 (Ku, Ka, C)
EUTELSAT 9B H2 2014 Up to 60 Ku




Note: Satellites generally enter into service one to two months after launch.



* Partnership satellite with ictQATAR, transponders indicated for Eutelsat portion
only



1. Percentage of revenues, EUR305.9 million Q3 2011-12, excludes "Other revenues" and
"Non-recurring revenues".



2. Extended Europe comprises Western Europe, Central Europe, Russia and Central Asia,
North Africa and the Middle East.





Source: Eutelsat Communications

For further information:
Press, Vanessa O'Connor, Tel.: +33-1-53-98-37-91, voconnor@eutelsat.fr; Frédérique Gautier, Tel.: +33-1-53-98-37-91, fgautier@eutelsat.fr;
Investors & Analysts, Lisa Finas, Tel. : +33-1-53-98-35-30, investors@eutelsat-communications.com;
Léonard Wapler, Tel. : +33-1-53-98-31-07, investors@eutelsat-communications.com


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