EUTELSAT COMMUNICATIONS THIRD QUARTER 2012-2013 REVENUES

PR Newswire/Les Echos/ 
PR/33/13 


             EUTELSAT COMMUNICATIONS THIRD QUARTER 2012-2013 REVENUES

* Revenues up 4.6% to EUR322.9 million (+3.9% at constant currency)

* Nine-month revenues up 5.0% to EUR956.5 million (+3.5% at constant currency)

* Record backlog of EUR5.5 billion

* Outlook for FY 2012-2013:
     o Revenue growth confirmed in the 5-6% range
     o Robust EBITDA margin at around 77.5%

Paris, May 7, 2013 - 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 31 March 2013.

Revenues by business application:

In millions of euros          3rd quarter ended March 31      Change
                                            2012    2013       In %

Video Applications                         211.0   216.4       +2.6

Data & Value-Added Services                 57.9    60.8       +4.9

Multi-usage                                 37.0    35.4       -4.4

Other revenues                               2.8     2.6       -8.0

Subtotal                                   308.7   315.1       +2.1

Non-recurring revenues                         -     7.7         NM

Total                                      308.7   322.9       +4.6
    9 months ended March 31                   Change 
            2012     2013                     In %
           614.3    647.1                    +5.3
           
           175.7    185.6                    +5.6
           111.4    108.1                    -3.0
             6.1      8.0                   +30.0
             3.5      7.7                      NM
           907.7    948.8                    +4.5
           911.2    956.5                    +5.0


 
Commenting on the Group's third quarter 2012-2013 revenues, Michel de Rosen, 
CEO of Eutelsat Communications, said: 
"Third quarter revenues were up 4.6%. The performance of Video, our main
business, accounting for almost 70% of revenues, was underpinned by sustained
demand at key neighbourhoods over Europe, Africa, and the Middle East.
Multi-usage revenues reflected the impact of US federal budget sequestration
which significantly affected the outcome of contract negotiations during the
quarter. This was partially offset by the integration of EUTELSAT 172A into 
the fleet. 
The record order backlog of EUR5.5 billion was buoyed in particular by new
long-term video contracts in North Africa and the Middle East, lending strong
visibility on future revenues. We are pursuing our programme to deploy capacity
on seven additional satellites by end 2015 to enable us to meet demand in the
highest growth applications and regions, with the first, EUTELSAT 3D, on track
for launch on May 14. 
Our revenue objective for Full Year 2012-2013 is maintained, with a likely
outturn at the lower end of the 5-6% range. Notwithstanding the current
investment in our overall commercial activity, the Group's EBITDA margin is now
expected to be around 77.5%." 
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 31 March 2012. 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 EUR322.9 million for the third
quarter, up 4.6% (3.9% at constant currency). For the 9-month period ending 31
March 2013, Group revenues stood at EUR956.5 million, up 5.0% (+3.5% at 
constant currency). 
VIDEO APPLICATIONS (69.2% of revenues(1)) 
Revenues from Video Applications, Eutelsat's largest business activity, rose
2.6% to EUR216.4 million. Growth was driven by three video neighbourhoods in
particular: 
* 16° East, serving broadcasters in Central Europe and Indian Ocean Islands,
  with the continuing ramp-up of new capacity added to this position in 2011 
  from EUTELSAT 16A. Channel count at this video neighbourhood increased 17%
  year-on-year to 625 channels. 
* 7° East, with coverage of Turkey, where both new and renewal contracts were
  signed. Performance was boosted by HD channel uptake which grew by 39%
  year-on-year. HD penetration at this neighbourhood is now the highest of
  Eutelsat's fleet, at over 15%. 
* 5° West, notably serving France and Algeria, also saw growth with new
  channels coming into the fleet. The total number of channels rose by 30% to 
  261, with the HD channel count up from six to 22, boosted by new sports 
  channels. 
The HOT BIRD position continued to grow, as long-term contracts in the backlog
translated into revenues. The three HOT BIRD satellites were broadcasting 1,117
channels at 31 March 2013, with HD penetration at 13.5%, up from 11.4% a year
earlier. 
The 7/8°West video neighbourhood also continues to show strong dynamic, with
channel growth in both Standard Digital (+13% to 601 channels) and High
Definition which more than doubled to 48 channels. The Middle East and North
Africa region remains a strong performer, reflected by new long-term contracts
signed during the quarter for upcoming broadcasting capacity at 7/8° West and
25°5 East. 
At 31 March 2013, the total number of channels broadcast by Eutelsat was 4,638,
up 9% (+386 channels) year-on- year. 434 of these channels were in High
Definition (+30%), implying an HD penetration rate across the fleet of 9.4%,
compared to 7.8% at 31 March 2012. 
DATA and VALUE-ADDED SERVICES (19.4% of revenues) 
Revenues from Data and Value-Added Services stood at EUR60.8 million, up 4.9%.
Data Services revenues stood at EUR46.7 million (+3.8%), reflecting the
integration of EUTELSAT 172A into the fleet. Despite the additional capacity on
the EUTELSAT 21B and EUTELSAT 70B satellites that became available over recent
months, Data Services did not perform as well as expected. The markets for
point-to-point services remain challenging as a consequence of terrestrial
networks (optic fibre) deployment and the increase in supply of available
satellite capacity, notably in Africa. 
Demand remains dynamic however for capacity for corporate networks and mobility
in fastest growing regions including Africa and the Asia Pacific. Eutelsat has
recently reinforced its commercial presence in both regions to take advantage 
of these positive trends. 
Value-added Services recorded growth of 8.9% to EUR14.1 million. Marketing
efforts, combined with an enhanced consumer broadband offer that provides 
speeds of up to 20Mbps download and up to 6Mbps upload and unlimited volumes, 
generated good sales momentum for KA-SAT. The distribution network also
continued to expand. On the professional side, the Group recently signed a
contract with a North African client using two of KA-SAT's beams to provide
1.6Gbp/s. 
(1) Percentages of revenues exclude "Other revenues" and "Non-recurring
revenues". 
MULTI-USAGE (11.3% of revenues) 
Revenues from Multi-usage services fell by 4.4% to EUR35.4 million.
This performance reflected the US federal budget sequestration which
significantly affected the outcome of negotiations for renewal and new
contracts. This was partially offset by the integration of EUTELSAT 172A into
the fleet. 
OTHER AND NON-RECURRING REVENUES 
Other revenues of EUR2.6 million related primarily to revenues from technical
service contracts with partners.
Non-recurring  revenues  of  EUR7.7 million mainly included penalties for 
late delivery of satellites currently under procurement. 
     LONG TERM VISIBILITY ASSURED - BACKLOG CONTINUES TO INCREASE 
The order backlog reached a record high EUR5.5 billion at 31 March 2013,
reinforcing long-term visibility on revenues and operating cash flows. The
backlog is equivalent to approximately 4.5 times annual revenues for Full Year
2011-2012. It mainly comprises video contracts (92%) and includes contracts
recently signed over the MENA region for future satellites. 
   YEAR-TO-DATE REVENUES (9 months ending 31 March 2013) AND OUTLOOK 
Revenues for the first nine months of 2012-2013 amounted to EUR956.5 million, 
up 5.0% (+3.5% at constant currency) compared to the same period of the 
previous fiscal year. 
The full year 2012-2013 reported revenue growth objective of 5 to 6% is
confirmed. It is expected to come in at the lower end of the range.
Notwithstanding the ongoing investment in the overall commercial activity, the
Group refines its EBITDA margin objective for the current year, which is now
expected at around 77.5%, from around 77% earlier. 
For the medium-term, the Group confirms positive trends for its leading 
business of video, which will benefit from new satellites to be launched by 
end 2015. However, the current challenges in Data services and Multi-usage 
could have an impact on the Group's revenue prospects. This impact would 
however be limited, at around one percentage point of revenue growth. The Group
will discuss its medium-term outlook on the occasion of its Full Year results, 
on 30 July 2013.  
                    FLEET DEPLOYMENT PLAN UPDATE 
EUTELSAT 70B entered into full commercial service at 70.5° East on 16 January
2013. This new satellite has been designed to optimise resources at 70.5° East
which is a point of reference for data services, broadband access, mobile
backhauling and professional video exchanges. With high frequency reuse, four
powerful beams with coverage of Europe, Africa, Asia and Australia are 
connected to 48 Ku-band transponders. 
The EUTELSAT 3D satellite arrived on 13 April 2013 at the Baikonour Cosmodrome
in Kazakhstan and is now undergoing final preparations for launch by a Proton
Breeze M rocket supplied by ILS. Lift-off is on track for 14 May. With a
baseline design equipping it to increase Eutelsat's overall in-orbit 
flexibility and back-up from multiple orbital slots, EUTELSAT 3D will initially
be located at the 3° East orbital position to video, data, telecom and 
broadband markets. Through a configuration of Ku and Ka transponders connected 
to three footprints, the new satellite will serve customers in Europe, North 
Africa, the Middle East and Central Asia. A fourth service area in the Ku-band 
will address markets in sub-Saharan Africa. EUTELSAT 3D will operate at 3° East
until the deployment of the EUTELSAT 3B satellite to this position in 2014. 
EUTELSAT 3B will provide spectrum growth and high operational flexibility in C,
Ku and Ka bands at 3° East, and release EUTELSAT 3D for service at 7° East. 


                                RECENT EVENTS

Hispasat
On 18 April 2013, Eutelsat Communications acquired a 6% stake in Hispasat, the
Spanish satellite operator. The total stake held by Eutelsat Communications in
Hispasat is now 33.69%.

New export credit financing
On 25 April, Eutelsat Communications entered into two separate bank loan
agreements covered by the Office national du ducroire (ONDD), the Belgian 
export credit agency.
The first agreement, for a total amount of EUR121 million, is an 11.5 year
amortising facility (the first installment will be repaid three years after
signing) bearing interest at an all-in rate of 2.07%(2), and will be used to
finance the construction of a satellite.
The second agreement, for a total amount of EUR87 million, is an 11.5 year
amortising facility (the first installment will be repaid three years after
signing) bearing interest at an all-in rate of 2.23%(2), and will be used to
finance a launcher.
                                     * * * 


  
Third Quarter revenues presentation 
Eutelsat Communications will hold a conference call in English on Tuesday 7 May
2013 starting at 6.30pm CET (London: 5:30pm, New York: 12:30pm). To connect
please dial: 
+33 1 70 99 32 12 (from France)
+44 207 162 0177 (from the U.K)
+1 334 323 6203 (from the United States)
Access code: 930541# 
Live presentation by webcast, via this link:
http://wcc.webeventservices.com/
r.htm?e=601054&s=1&k=28DAD6452F8D3184853C3064B90D0D1C&cb=blank 
Instant replay number from 7 May 11:30pm to May 21, midnight (CET). To connect
please dial: 
+ 33 (0)1 70 99 35 29 (from France)
+ 44 (0) 207 031 4064 (from the U.K)
+ 1 954 334 0342 (from the United States)
Access code: 930541# 
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, 2013: earnings for the full year ended June 30, 2013 
- October 29, 2013: financial report for first quarter ended September 30,
  2013 
- November 7, 2013: Annual General Shareholders Meeting 
About Eutelsat Communications 
Eutelsat Communications is the holding company of Eutelsat S.A. With capacity
commercialised on 30 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 31 March 2013, Eutelsat's satellites
were broadcasting more than 4,600 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. www.eutelsat.com 
(2) Rates based on 6-month Euribor and calculated at the facilities signing
date 
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 
Léonard Wapler           Tel. : +33 1 53 98 31 07 
                     investors@eutelsat-communications.com 


                                  Appendix

Revenue breakdown by application (in percentage of revenues)*
                              3 months ended 31 March   9 months ended 31 March
                                      2012       2013      2012            2013


 
Video Applications                   69.0%      69.2%      68.1%          68.8%
Data & Value-Added Services          18.9%      19.4%      19.5%          19.7% 


     .....of which Data Services     14.7%      14.9%      15.5%          14.9%
     .....of which Value-Added 


                  Services        4.2%       4.5%       4.0%           4.8%
Multi-usage                          12.1%      11.3%      12.4%          11.5%
Total                                 100%       100%       100%           100% 
*excluding other revenues and one-off revenues (EUR2.8 million in Q3 2011-2012,
EUR10.3 million in Q3 2012-2013 and  EUR9.6 million year-to- date 2011-2012,
EUR15.7 million year-to-date 2012-2013). 
Quarterly revenues by business application 
                                   2011-2012                2012-2013
In millions of euros         Q1        Q2     Q3      Q4     Q1     Q2     Q3 
Video Applications           198.2    205.1  211.0  217.8   216.3  214.4  216.4
Data & Value-Added Services   59.6     58.2   57.9   59.3    61.1   63.8   60.8
Data Services                 48.3     46.8   45.0   44.9    44.9   48.8   46.7
Value-Added Services          11.3     11.4   12.9   14.3    16.2   15.0   14.1
Multi-usage                   36.2     38.2   37.0   35.0    34.1   38.6   35.4
Other Revenues                 1.3      2.0    2.8   (1.1)    3.0    2.4    2.6
Subtotal                     295.4    303.6  308.7   311.1  314.4  319.2  315.1
Non-recurring Revenues           -      3.5      -       -      -      -    7.7
Total                        295.4    307.1  308.7   311.1  314.4  319.2  322.9 
Channels at video neighbourhoods serving Central and Eastern Europe, Russia,
Middle East and Africa 
Orbital position              Markets                  31/03/2012  
31/03/2013
7°/ 8° West                   North Africa, Middle East    553          649
7° East                       Turkey                       214          228
16° East                      Central Europe,  
                          Indian Ocean islands         534          625
36° East                      Russia, Africa               691          727
Total                                                     1,992        2,229 
Estimated satellite launch schedule (satellites generally enter into service 
one to two months after launch.) 
Satellite               Estimated launch (calendar year)      Transponders 
EUTELSAT 3D(1)                      Q2 2013                  53 Ku / 3 Ka(2)
EUTELSAT 25B(3)                     Q3 2013                   16 Ku / 7 Ka
Express AT2(4)                      H2 2013                       8 Ku
EUTELSAT 3B                         H1 2014                   51 (Ku, Ka, C)
EUTELSAT 9B                         Q1 2015                       60 Ku
EUTELSAT 8 West B                   Q3 2015                   40 Ku / 10 C
EUTELSAT 36C(4)                     H2 2015                 Up to 70 (Ku & Ka) 
(1) Ex-EUTELSAT 7B
(2) Nominal capacity. 32 Ku / 1 Ka to be operational at 3°East
(3) Partnership satellite with Qatar Satellite Company, transponders indicated
for Eutelsat portion only, pending outcome of ITU dispute
(4) Partnership satellites with RSCC 
                  
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-0- May/08/2013 09:10 GMT