Eutelsat Communications Third Quarter 2012-2013 Revenues

           Eutelsat Communications Third Quarter 2012-2013 Revenues

PR Newswire

PARIS, May 7, 2013

PARIS, May 7, 2013 /PRNewswire/ --

  +Revenues up 4.6% to €322.9 million (+3.9% at constant currency)
  +Nine-month revenues up 5.0% to €956.5 million (+3.5% at constant currency)
  +Record backlog of €5.5 billion
  +Outlook for FY 2012-2013:

       oRevenue growth confirmed in the 5-6% range
       oRobust EBITDA margin at around 77.5%

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:

                               3rd quarter ended            9 months ended
                                        March 31  Change          March 31  Change
    In millions of euros          2012      2013    In %     2012     2013    In %
    Video Applications           211.0     216.4    +2.6    614.3    647.1    +5.3
    Data & Value-Added Services   57.9      60.8    +4.9    175.7    185.6    +5.6
    Multi-usage                   37.0      35.4    -4.4    111.4    108.1    -3.0
    Other revenues                 2.8       2.6    -8.0      6.1      8.0   +30.0
    Subtotal                     308.7     315.1    +2.1    907.7    948.8    +4.5
    Non-recurring revenues           -       7.7      NM      3.5      7.7      NM
    Total                        308.7     322.9    +4.6    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 bysustained
demand at key neighbourhoods over Europe, Africa, and theMiddle East.
Multi-usage revenues reflected the impact ofUSfederal 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 €5.5 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 onseven 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
marginisnow expectedto 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 €322.9 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 €956.5 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 €216.4 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 €60.8 million, up 4.9%.

Data Services revenues stood at €46.7 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 €14.1 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.

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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 €35.4 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 €2.6 million related primarily to revenues from technical
service contracts with partners.

Non-recurring revenues of €7.7 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 €5.5 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 €956.5 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.

RECENTEVENTS

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 €121 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 €87 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 6.30pmCET(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. 

  oJuly 30, 2013: earnings for the full year ended June 30, 2013
  oOctober 29, 2013: financial report for first quarter ended September 30,
    2013
  oNovember 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. http://www.eutelsat.com

--------------------------------------------------

2. Rates based on 6-month Euribor and calculated at the facilities signing
date



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 (€2.8 million in Q3 2011-2012,
€10.3 million in Q3 2012-2013 and €9.6 million year-to-date 2011-2012, €15.7
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

    7degree(s)/8degree(s) West  North Africa, Middle East               553          649
    7degree(s) East             Turkey                                  214          228                    
    16degree(s) East            Central Europe, Indian Ocean islands    534          625
    36degree(s) 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.)

                            Estimated launch
    Satellite               (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

SOURCE Eutelsat Communications

Contact: 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
 
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