28 East loss hits Eutelsat video revenues

May 16, 2014 11.07 Europe/London By Julian Clover

Eutelsat - Communications System Control Centre (Rambouillet, France)The loss of frequencies at 28 degrees East hit video revenues at Eutelsat Communications, but the operator was able to compensate by growth at its new Latin American foothold Satmex.

The frequencies, held through the German operator Media Broadcast, are used to broadcast to the UK, largely for the BSkyB and Freesat platforms. A long running dispute with SES came to an end on October 4, when the Luxembourg-based SES took over the running of the frequencies.

Excluding Satmex video revenues for the quarter fell by 1.2%, there were also issues with frequency availability, but overall the sector climbed to €219.7 million. The important sector contributed to overall revenues of €342.3 million.

“In the third quarter, Video Applications revenues reflected the impact of the suspension of operations on certain frequencies at 28.5 degrees East and the lack of available capacity at other key video neighbourhoods,” Michel de Rosen, Chairman and CEO of Eutelsat Communications, said. “The integration of Satmex is progressing well and the Latin American market continues to confirm its potential, with two multi-year contracts signed for the sale of High Throughput Payloads serving the Brazilian market, while Satmex’s order backlog has almost doubled over the last 12 months.”

The group confirmed its full year objective of above 2.5% organic revenue growth, excluding Satmex, which the company says is well on track to add around US$70 million to revenues in the current fiscal year.