PARIS, October 29, 2013 /PRNewswire/ --
Quarterly revenues in line with
objectives:
Revenues up 2.9% to €323.5 million (+4.0% at constant currency
and excluding non-recurring revenues)
- Video Applications up 0.4%, reflecting the lack of incremental
capacity and a high fill-factor at the Group's key video
neighbourhoods
- Data and Value-Added Services up 8.5%, with strong growth of
Value-Added Services (+42.4%)
- Multi-usage up 8.1% with the integration of EUTELSAT 172A
Backlog at €5.4 billion, up 3.9 %
year-on-year
Outlook: current year and three year
targets confirmed, excluding Satmex, and pending outcome of
on-going discussions with SES relating to disputed frequencies at
28.5° East
Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris:
ETL) today reported revenues for the first quarter ended
30 September 2013.
Business applications First quarter ended 30 September
In millions of euros 2012 2013 Change
Video Applications 216.3 217.1 +0.4%
Data & Value Added Services 61.1 66.3 +8.5%
Data Services 44.9 43.2 -3.8%
Value Added Services 16.2 23.0 +42.4%
Multi-usage 34.1 36.8 +8.1%
Other revenues 3.0 3.0 +1.6%
Total excluding non-recurring revenues 314.4 323.2 +2.8%
Non-recurring revenues - 0.3 NS
Total revenues 314.4 323.5 +2.9%
Note: unless otherwise stated, all
growth indicators or comparisons are made against the first quarter
of the previous fiscal year or 30 September
2012. The share of each application as a percentage of total
revenues is calculated excluding "other revenues" and
"non-recurring revenues".
Commenting on the first quarter, Michel
de Rosen, Eutelsat Chairman and CEO, said:
"Eutelsat delivered first quarter
2013-2014 revenues in line with objectives. The performance of
Video Applications reflects the lack of available capacity for this
activity, which will be addressed with future fleet deployments.
The Group's main video neighbourhoods saw good channel growth,
demonstrating the positive underlying trend in our main
application. Data and Value-Added Services revenues were
underpinned by the growing contribution from Value-Added Services,
up 42% in the quarter. Revenues also factored in the effect of the
acquisition of EUTELSAT 172A for Data Services and Multi-usage.
"This quarter saw the announcement of
the acquisition of Satmex which, together with our multi-band
EUTELSAT 65 West A satellite to be launched to 65° West will equip
us to scale up our presence in the dynamic Latin American markets.
Our in-orbit resources for North
Africa, Middle East and
Central Asia markets continues to
expand with the entry into service today of the EUTELSAT 25B
satellite launched in August. Our deployment plan for the remainder
of the current and the coming two years is on track, bringing
additional capacity that will principally serve video markets in
the fastest growing regions, notably Russia, the Middle
East and Africa.
"Our financial objectives remain
unchanged for the current and following two years. They will be
adjusted once the Satmex acquisition is closed, and if necessary in
the context of the current discussions with SES on the 28°5 East
situation."
FIRST QUARTER 2013-2014 REVENUE
ANALYSIS
First quarter revenues stood at €323.5 million, up 2.9%.
Excluding non-recurring revenues and at constant currencies,
revenues increased 4.0%.
VIDEO APPLICATIONS (67.8% of revenues)
Revenues from Video Applications were virtually stable at
€217.1 million, reflecting the lack of incremental capacity and a
high fill-rate at key video neighbourhoods.
- Channels broadcast from the 7°/8° West neighbourhood rose by
17% during the year to 688 (+101) at 30
September 2013. This neighbourhood, serving broadcasters in
the Middle East and North Africa, benefitted from contracts signed
with clients that include Al Jazeera, Gulfsat, MBC, Nilesat and
Noorsat in the previous fiscal year. Although resources were
reinforced with the redeployment of EUTELSAT 8 West C (formerly HOT
BIRD 13A) to 7/8° West in mid-September, transponders contracted on
this satellite contributed only marginally to first quarter
revenues.
- Channels broadcast from the 16° East neighbourhood rose by 23%
during the year to 728 (+137) at 30
September 2013. New contracts signed at this neighbourhood,
which serves broadcasters in sub-Saharan Africa, Indian Ocean
Islands and Central Europe include
one towards the end of the quarter with Telekom Austria Group to
support the launch of its new white label DTH platform for Central
and Eastern Europe.
- Channels broadcast from the 36° East neighbourhood, serving
broadcasters in Russia and
sub-Saharan Africa rose by 9% during the year to 786 (+63) at
30 September 2013. The DTH business
at this neighbourhood continues to expand, with a new contract
signed with Lybid TV in Ukraine.
At 30 September 2013, the total
number of channels broadcast by Eutelsat's satellites was 4,713, up
7.0% (+310 TV channels) year-on-year. 439 of these channels were in
HD (from 379, or +15.8%), implying an HD penetration rate of 9.3%
compared to 8.6% at 30 September
2012.
Professional video revenues were slightly down as the first
quarter of the previous fiscal year benefitted from additional
demand for capacity generated by broadcasters and service providers
delivering coverage of the 2012 London Olympic Games.
Coverage of Russia will be
further enhanced with the entry into service of Express-AT1 (at 56°
East) and Express-AT2 (at 140° East) in the second half of the
current financial year, on which 16 transponders have already been
contracted to TricolorTV.
DATA AND VALUE ADDED SERVICES (20.7%
of revenues)
Data Services revenues declined by 3.8% to €43.2 million,
reflecting the on-going competitive environment as point-to-point
services continue to be under pressure from the roll-out of
terrestrial networks and, specifically in Africa, from the existing supply of satellite
capacity. This application is also impacted by the on-going
expected negative impact of the transfer of a Data customer from 7°
East to 10° East in order to prepare for the expansion at 7° East
of a broadcast customer. This was not offset by the integration of
EUTELSAT 172A into the fleet (acquisition closed on 25 September 2012).
Value Added Services revenues amounted to €23.0 million,
up 42.4%.
Broadband services on KA-SAT performed well, reflecting the
continuing success of the intensified marketing efforts and the
enhanced broadband offer launched in the last financial year.
Around 108,000 terminals were activated at 30 September 2013 (from 91,000 at 30 June 2013).
- On the consumer broadband side, distributors in France and Spain were the major contributors to net adds,
while distributors in the Ukraine
and in Russia started to show
traction. Training of consumer equipment installers has continued,
with a total of 4,000 trained installers in October 2013.
- On the professional side, the roll-out of corporate networks
continues, with notably a contract allowing Montenegro's police headquarters to connect
with the country's border control stations. VPN services on KA-SAT
specifically target corporates and administrations requiring
centralised control over geographically dispersed offices.
Mobile connectivity services for the maritime market, notably
through WINS, also contributed to year-on-year revenue growth in
Value Added Services.
MULTI-USAGE (11.5% of revenues)
Revenues from Multi-usage services stood at
€36.8 million, up 8.1%, with the integration of EUTELSAT 172A into
the fleet and new contracts together more than offsetting the carry
forward effect of the February / March
2013 renewal campaign. The September / October 2013 contract renewal campaign was in
line with expectations. Budgetary constraints in the United States are still on-going, leading
Eutelsat to confirm a degree of caution on the evolution of
revenues for this application.
OTHER AND NON-RECURRING REVENUES
Other revenues, which mainly comprise
contributions from service contracts with partners and the Group's
foreign exchange hedging programme, were stable at €3.0
million.
Non-recurring revenues stood at €0.3 million.
OPERATIONAL AND LEASED
TRANSPONDERS
The fill rate stood at 75.2% at 30
September 2013, compared to 74.0% at 30 June 2013 and 75.8% at 30 September 2012. The year-on-year evolution
reflects the entry into service of new satellites (EUTELSAT 21B,
EUTELSAT 70B and EUTELSAT 3D) and the redeployment of EUTELSAT 8
West C at the 7°/8° West neighbourhood in mid-September 2013. EUTELSAT 25B, launched on
29 August 2013, became operational on
29 October 2013 and is therefore not
included in the table below.
At 30 September 2012 2013
Number of operational
transponders[1] 801 859
Number of leased transponders[2] 607 646
Fill rate 75.8% 75.2%
Note: KA-SAT's 82 spot beams
are considered transponder equivalents. The satellite's fill rate
is considered to be at 100% when 70% of the capacity is taken
up.
BACKLOG AT €5.4 BILLION (93%
VIDEO)
The order backlog stood at €5.4 billion at 30 September 2013, up 3.9% year-on-year and
equivalent to 4.2 times 2012-2013 revenues. The backlog represents
future revenues from capacity lease agreements and can include
contracts for satellites not yet in operation.
As of September 30 2012 2013
Value of contracts (in billions of euros) 5.2 5.4
In years of annual revenues based on last fiscal
year 4.2 4.2
Share of Video Applications 91% 93%
OUTLOOK FOR FISCAL YEAR 2013-2014 AND
TWO FOLLOWING YEARS
Eutelsat confirms the outlook published on 30 July 2013 for the current and next two years
to June 2016, as follows:
Revenues (at constant
currency and excluding non-recurring revenues)
Based on a nominal satellite deployment plan, the Group targets
organic revenue growth above 2.5% for the current year. With the
deployment of additional capacity, mainly in 2014 and 2015, average
revenue growth should be above 5% for the two subsequent years to
30 June 2016.
EBITDA
The EBITDA margin is targeted at around 77% for each fiscal year
until 2016.
Active and
targeted investment policy
The Group will continue to pursue a targeted investment policy.
Average investments will stand at around €550 million a year over
the three fiscal years to 30 June
2016. This includes capital expenditures and payments under
export credit facilities and under long-term lease agreements on
third party capacity.
Sound financial
structure
The group will maintain a sound financial structure to support
an investment grade credit rating. Over the long term, it aims at a
net debt / EBITDA below 3.3x.
Attractive
shareholder remuneration
The Group remains committed to sharing its profits with its
shareholders over the fiscal years 2013-2016, with a pay-out ratio
of 65% to 75% of Group share of net income.
Revenues, EBITDA and Capex targets are given excluding the
impact of the acquisition of Satmex.
In a press release dated 4 October
2013, Eutelsat indicated that revenues from the disputed
frequencies at 28.5° East were estimated at some €20 million for
the remainder of the current fiscal year 2013-2014 and
approximately €25 million for each of the two following years; the
potential loss of these revenues was not taken into account in the
above objectives. They will be adjusted, if and when necessary.
FLEET DEVELOPMENT update
Launch of EUTELSAT 25B and
redeployment of EUTELSAT 25C
EUTELSAT 25B satellite, a joint venture satellite with
Es'hailSat from Qatar, went into
commercial service on 29 October 2013
at 25.5° East. The satellite was launched on 29 August by an Ariane
5 rocket.
Traffic on Eutelsat's EUTELSAT 25C satellite at 25.5° East was
transferred onto Ku-band transponders commercialised by Eutelsat on
the new EUTELSAT 25B satellite in the night of 28 to 29 October.
This transfer has released EUTELSAT 25C for a new mission at 33°
East. It will be copositioned next month with EUTELSAT 33A at 33°
East to bring additional capacity to this orbital location.
EUTELSAT 25B brings additional capacity to 25.5° East to serve
broadcasters, businesses and public agencies operating in the
Middle East, North Africa and Central Asia. The new satellite operates in
both Ku and Ka-bands.
Satellite redeployments and
strengthening of in-orbit security
Following the entry into service of EUTELSAT 3D at 3° East,
EUTELSAT 3C was redeployed in early July to the HOT BIRD position
at 13° East. Renamed HOT BIRD 13D, it is now colocated with the
identical HOT BIRD 13B and C satellites. With each satellite
equipped with 64 high-power Ku-band transponders, they together
span the entire range of 102 Ku-band frequencies at 13° East and
deliver broadcast customers industry-leading levels of security and
100% in-orbit redundancy.
The reconfiguration of the HOT BIRD constellation released the
HOT BIRD 13A satellite which has since been deployed to 7°/8° West.
Renamed EUTELSAT 8 West C, it has enabled Eutelsat to switch on
additional transponders at the key neighbourhood for broadcasting
in North Africa and the
Middle East. This orbital position
will get a further boost in the second half of 2015 with the launch
of EUTELSAT 8 West B.
In October 2013, EUTELSAT 4B was
de-orbited after reaching the end of its operational life.
Estimated satellite launch schedule
(satellites generally enter into service one to two months after
launch.)
Estimated
launch Main Main
(calendar applications geographic
Satellite Orbital position year) targeted coverage Transponders
Express
AT1[(1)] 56degree(s) East Q4 2013 Video Siberia 19 Ku
Express Far East
AT2[(1)] 140degree(s) East Q4 2013 Video Russia 8 Ku
Europe,
Africa,
Middle
East,
Central
EUTELSAT Telecoms, Asia, Latin 30 Ku / 9 Ka
3B[(2)] 3degree(s) East H1 2014 Broadband America / 12 C
Europe,
North
EUTELSAT Africa,
9B 9degree(s) East Q1 2015 Video Middle East 60 Ku
Middle
East,
Africa,
EUTELSAT 7degree(s)/8degree(s) South
8 West B West Q3 2015 Video, Data America 40 Ku / 10 C
Russia,
EUTELSAT Video, Data, Sub-Saharan Up to 52 Ku
36C[(1)] 36degree(s) East H2 2015 Broadband Africa / 18 Ka
EUTELSAT Video, Data, Latin Up to 58
65 West A 65degree(s) West H1 2016 Broadband America (Ku, Ka, C)
[1]Partnership satellites
with RSCC. For Express-AT1 & AT2, transponders indicated for
Eutelsat portion only
[2]When launched to 3° East,
EUTELSAT 3B will release EUTELSAT 3D to 7° East to address video
markets in Turkey
Recent EVENTS
Acquisition of Satmex
Eutelsat Communications announced on 31
July 2013 it had reached an agreement to acquire 100% of
Satélites Mexicanos, S.A. de C.V. ("Satmex") for an enterprise
value of US$1,142 million. This
acquisition, together with the recently ordered EUTELSAT 65 West A
satellite, will position the Group as a major satellite operator in
Latin America, reflecting its
strategy to expand in high growth markets.
The closing of the transaction is expected by year-end 2013.
In September 2013, the acquisition
financing was finalised at attractive terms through a 2-year
$850 million bridge term loan. The
€450 million revolving credit facility of Eutelsat S.A. was also
refinanced through a new €450 million revolving credit facility
maturing in September 2018 at
improved terms.
Operations at 28°5 East
Following the decision of the Arbitral Tribunal constituted
under the rules of the International Chamber of Commerce of
Paris that concluded the first
phase of arbitration in September
2013 and a preliminary injunction by the regional civil
court of Bonn, SES and Eutelsat Communications collaborated in the
best interest of customers to ensure a smooth transition of
operations on frequencies at 28.5° East under a German filing. As
of October 4, SES was operating and
Eutelsat had ceased operating on these frequencies. The transfer
was successfully completed in the night of 3-4 October.
SES and Eutelsat are in discussions to find a solution regarding
the subject matter of the arbitration.
Update on tax audit
As disclosed in the Eutelsat Communications 2012-2013
consolidated accounts, the French tax authorities notified Eutelsat
on 20 December 2012 of a total €27.5
million tax reassessments over a 3-year period. These were
challenged by Eutelsat in view of the strong arguments held. On
11 October 2013, the company was
informed that the French tax authorities abandoned certain of the
reassessments for a total of approximately €5.5 million. The
remaining reassessment was confirmed and Eutelsat continues to
contest it.
governAnce
At its meeting of 16 September
2013, the Board of Eutelsat Communications (Euronext Paris:
ETL) was informed by its Chairman, Jean-Martin Folz, that he would not seek to
renew his mandate, which expires at the General Assembly of
Shareholders of 7 November 2013, in
order to respect corporate governance recommendations on multiple
directorships by the Afep-Medef. To enable the Board to immediately
appoint a successor and to avoid uncertainty during a period of
transition, Jean-Martin Folz has
resigned as Chairman. He will remain a Board member until the
General Assembly. The board expressed its appreciation for
Jean-Martin Folz's contribution to
the strategic directions pursued by the Group over the last two
years.
Noting that the recent developments of Eutelsat and the
reorganisation of shareholders no longer justifies the separation
of the roles of Chairman and CEO, the Board decided to merge the
two functions, reverting to the practice in place from 2004 to
2009. The Board subsequently unanimously decided to appoint
Michel de Rosen, who has been CEO
since 2009, as Chairman and CEO.
First quarter revenues presentation
for analysts and investors
Eutelsat Communications will hold an analysts and investors
conference call in English on
Tuesday, 29October 2013
to present its first quarter 2013-2014 revenues. The conference
call will begin at 6:30 pmParis time (London: 5:30 pm,
New York: 12:30 pm).
You can follow this presentation live (in English) by connecting
via the following telephone numbers:
- +33 (0) 1 76 74 24 28 (from France)
- +44 (0) 1452 555 566 (from the UK or elsewhere)
- +1 631 510 7498 (from United States)
Access code: 84320201 #
Instant replay number will be available from 29 October midnight
to 7 November, midnight (Paris
time):
- +44 (0) 1452 550 000 (from the U.K or elsewhere)
- +1 866 247 4222 (from the
United States)
Access code: 84320201 #
Financial calendar
The financial calendar below is
provided for information purposes only. It is subject to change and
will be regularly updated.
- November 7, 2013: Annual General
Shareholders Meeting
- February 14, 2014: First Half
2013-2014 Financial Results
- May 15, 2014: Third Quarter
2013-2014 Revenues
--------------------------------------------------
1. Number of transponders on satellites in stable orbit, back-up
capacity excluded
2. Number of transponders leased on satellites in stable orbit
3. Non-recurring revenues comprise late delivery penalties and
outage penalties
About Eutelsat Communications
With capacity commercialised on 31 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 30 September 2013, Eutelsat's satellites were
broadcasting more than 4,700 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
APPENDIX
Revenue breakdown
by application (in percentage of revenues)*
3 months ended 30 September 2012 2013
Video Applications 69.4 67.8
Data & Value-Added Services 19.6 20.7
........of which Data Services 14.4 13.5
.......of which Value-Added Services 5.2 7.2
Multi-usage 10.9 11.5
Total 100% 100%
*excluding other revenues and one-off revenues
(€3.0 million in Q1
2012-2013 and €3.3 million
in Q1 2013-2014)
Quarterly revenues
by business application
3 months ended
In millions of
euros 30/09/2012 31/12/2012 31/03/2013 30/06/2013 30/09/2013
Video
Applications 216.3 214,4 216,4 218.5 217.1
Data &
Value-Added
Services 61.1 63.8 60.8 67.1 66.3
............of
which Data
Services 44.9 48.8 46.7 47.1 43.2
......of which
Value-Added
Services 16.2 15.0 14.1 20.0 23.0
Multi-usage 34.1 38.6 35.4 37.4 36.8
Other revenues 3.0 2.4 2.6 2.5 3.0
Sub-total 314.4 319.2 315.1 325.5 323.2
Non-recurring
revenues[3] - - 7.7 2.1 0.3
Total 314.4 319.2 322.9 327.6 323.5
Note: At a constant euro-dollar exchange rate, revenue growth
would have been 4.1% (+2.9% at variable currencies) in Q1 2013-2014
compared with Q1 2012-2013.
Channel growth at
neighbourhoods serving Central and Eastern Europe, Russia, Middle
East, Africa
Orbital position Markets 30/09/2012 30/09/2013 Growth
7 degree(s)/ 8 degree(s) North Africa, Middle
West East 587 688 +17.2%
7 degree(s) East Turkey 218 222 +1.8%
Central Europe, Indian
16 degree(s) East Ocean islands 591 728 +23.2%
36 degree(s) East Russia, Africa 723 786 +8.7%
Total 2,119 2,424 +14.4%
SOURCE Eutelsat Communications
