Third Quarter revenues of €337 million, down 3.3% like-for-like (-7.4% reported)
- Improving overall trend for the operating verticals, down 1.1%
- Nine month revenues of €1,034 million, down 5.0% like-for-like (-7.6% reported)
- Procurement of KONNECT VHTS, a major step in the Connectivity growth strategy
- Full Year revenues outturn subject to materialisation of ‘Other Revenues’ (ie non-recurring and non-capacity) during Q4; all other current year and medium-term objectives fully confirmed
Paris, 14 May 2018 – Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL) today reported revenues for the Third Quarter and Nine Months ended 31 March 2018.
Revenues for the three months to 31 March 2018
Rodolphe Belmer, Chief Executive Officer, commented: “In the third quarter, the overall revenue trend of our five operating verticals improved further at -1.1% after -1.8% at the half-year stage. Video continued to progress, notably with improving trends at our HOTBIRD video position, while in Government Services the outcome of the latest US Department of Defense renewals was positive once again, at above 95%. On the other hand, ‘Other Revenues’ are running behind expectations following the outturn of the Third Quarter.
We are working on a handful of active “Other Revenues” opportunities in the pipeline which would enable us to land at the low end of our Full Year total revenues objective of -1 to -2%. However, in the event that none of these “Other Revenues” materialize in the fourth quarter, the decline in revenues could be up to c. -3.5%. This has no impact on our other objectives for the current and following two years which are fully confirmed.
The year to date has seen significant headway on our strategic roadmap. In particular the procurement of KONNECT VHTS, represents a major milestone in our growth strategy in Connectivity and comes with major multi-year distribution commitments with Orange and Thales. Elsewhere, the disposal of our stake in Hispasat will contribute to accelerating our deleveraging in line with our commitment to financial optimisation.”
Since the start of 2018, Eutelsat has made further headway on its strategic roadmap with:
- The procurement of KONNECT VHTS, a major milestone in the Group's growth strategy in Connectivity with significant multi-year distribution commitments with Orange and Thales and representing the optimum solution from a commercial, technical, financial and operational perspective;
- Closing of the sale of the Hispasat stake for €302m, an important step in the rationalization of the Group’s portfolio, maximizing cash and accelerating deleveraging;
- Landmark MoU with China Unicom to address the satellite communications market in the framework of the “Belt and Road” initiative, followed up by the commercialization of the remaining HTS capacity on EUTELSAT 172B to UnicomAirNet, representing a backlog of over $100 million;
- Several other commercial highlights including:
- In Government Services, the favourable outcome of the Spring 2018 renewal campaign with the US Department of Defense with a renewal rate above 95%;
- Further contracts secured in Government Services at the 174° East orbital position following the relocation of EUTELSAT 172A;
- The reservation of a significant portion of the capacity on EUTELSAT QUANTUM by Peraton, meaning the satellite is now largely reserved;
- On HOTBIRD, a multi-year capacity agreement with Mediaset to accelerate its transition to High Definition as well as a multi-year, multi-transponder renewal with TVN, one of Poland’s leading broadcasters.
Evolution of Revenues at constant currency and perimeter, excluding Other revenues.
At constant currency and perimeter. The variation is calculated as follows: i) Q3 2017-18 USD revenues are converted at Q3 2016-17 rates; ii) Q3 2017-18 revenues are restated from the net contribution of Noorsat.
Other revenues include mainly compensation paid on the settlement of business-related litigations, the impact of EUR/USD currency hedging, the provision of various services or consulting/engineering fees and termination fees.
About Eutelsat Communications
Founded in 1977, Eutelsat Communications is one of the world's leading satellite operators. With a global fleet of satellites and associated ground infrastructure, Eutelsat enables clients across Video, Data, Government, Fixed and Mobile Broadband markets to communicate effectively to their customers, irrespective of their location. Over 6,800 television channels operated by leading media groups are broadcast by Eutelsat to one billion viewers equipped for DTH reception or connected to terrestrial networks. Headquartered in Paris, with offices and teleports around the globe, Eutelsat assembles 1,000 men and women from 44 countries who are dedicated to delivering the highest quality of service.
Eutelsat Communications is listed on the Euronext Paris Stock Exchange (ticker: ETL).
For more about Eutelsat go to www.eutelsat.com
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