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FIRST QUARTER 2019-20 REVENUES

Press release   •   Oct 30, 2019 17:45 CET

  • First Quarter revenues of the Operating Verticals of €316.5 million, down 6.2% like-for-like
  • Coming quarters to benefit from easing comps, new capacity and Broadband ramp
  • All financial objectives confirmed based on nominal deployment plan
  • LEAP 2 cost-savings plan underway
  • Order of EUTELSAT 10B and first nano-satellites for the ELO constellation, paving the way for future growth in Connectivity

  • Paris, 30 October 2019– Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL) reports revenues for the First Quarter ended 30 September 2019.

    Rodolphe Belmer, Chief Executive Officer, commented: “The first Quarter has seen a number of milestones in our Connectivity strategy, with the procurement of EUTELSAT 10B with significant pre-commitments in the mobility segment and the foundations laid for the IoT strategy, notably with the order of our first ELO constellation nanosatellites. Elsewhere, we have added a further lever to our cash flow strategy with the roll-out of the LEAP 2 cost-savings plan, aiming to generate opex economies of €20-25 million by FY 2021-22, which will be reinvested in our future growth verticals whilst preserving our EBITDA margin.

    Despite our expectation that the revenues profile for the current year will be back-end loaded, the outturn of the First Quarter is slightly below our expectations, notably due to worsening trends in Data & Professional Video and the unplanned return of a couple of transponders in Russia. On the other hand, the coming quarters will benefit from easing comps in Government Services and Data & Professional Video, the contribution of new capacity and the ramp-up of African Broadband.

    We therefore confirm our Full Year objective of revenues for the Operating Verticals of between€1,280 million and €1,320 million, albeit with an increased likelihood of a landing in the lower half of this range. All other elements of the financial outlook are also reiterated. These objectives are subject to a nominal deployment plan, and notably the outcome of tests on the condition of the EUTELSAT 5 West B satellite.”

    [1]Change at constant currency and perimeter. The variation is calculated as follows: i) Q1 2019-20 USD revenues are converted at Q1 2018-19 rates; ii) Q1 2018-19 revenues are restated from the disposal of Eutelsat’s interest in Eutelsat 25B which occurred in August 2019.

    [2]Other revenues include mainly compensation paid on the settlement of business-related litigations, the impact of EUR/USD revenue currency hedging, the provision of various services or consulting/engineering fees and termination fees.

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    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 7,000 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 46 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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