Eutelsat “on track” to meet objectives

The number of HD channels distributed by Eutelsat increased by 30.4% to 940 in the year to September 30.

At the same time, the total number of channels broadcast on the company’s fleet stood at 6,336, representing a year-on-year increase of 8.2%.

Video applications generated 63% of Eutelsat’s revenues in the quarter ending September 30. They amounted to €224.3 million, down 1.3% like-for-like on a year earlier.

Value added services represented 8% of Eutelsat’s revenues in the quarter.

Looking forward, the company says that the loss of Amos-6 on September 1 will impact around €5 million on revenues in FCY 2016/17, €15 million in FY2027/18 and €25-30 million in FY2018/19.

Eutelsat’s total revenues in the three months to September 30 were €384.8 million, a like-for-like increase of 0.7% on a year earlier.

Commenting on the results, Rodolphe Belmer, CEO, said: “First quarter revenues were fully in line with our expectations, and we are on track to meet our objectives for the full year. We have made a number of important steps along our new strategic roadmap, notably the procurement of the Eutelsat 5 West B satellite under the ‘design-to-cost’ policy, generating significant capex savings, as well as progress on non-core asset disposals with Hispasat and Wins. On the operational side, I would highlight the rapid execution of the rationalisation of distribution at the Hotbird orbital position and the strong renewal rate with the US Department of Defence during the Fall round, confirming the stabilisation in Government Services. In connectivity, we have seen a number of positive developments including the launch of the Russian broadband service on Eutelsat 36C, the securing of capacity enabling us to launch our African broadband initiative with limited delay despite the loss of the Ka payload on Amos-6 satellite, and the signing of several contracts for in-flight connectivity highlighting the quality of our in-orbit resources.

“We are focused on optimising the revenue potential of our existing assets and maximising discretionary free-cash-flow generation, and we are working on additional measures to this end, notably operating cost savings, with the objective of reducing leverage, investing selectively in future growth opportunities and delivering an attractive shareholder remuneration.”