Eutelsat bottom line sees the benefit of added capacity
| 01 November 2014
A 3.2% rise in its core video business, due mainly from capacity added in the past year, has seen Eutelsat turn in a solid first quarter of 2014-2015.
eutelsatFor the first quarter ended 30 September 2014, the leading satellite operator reported that the video line brought in €227.6 million of total revenues of €357.6 million, which were up 4.2% on a like-for-like basis. The increase in video applications revenues reflected the entry into service of the Express-AT1 satellite, which was operational for the full quarter, additional resources added at 7°/8° West in September 2013 and a good performance from Satmex video applications. These offset the impact of the suspension of operations on certain frequencies at 28.5° East in October 2013.
At 30 September 2014, the total number of channels broadcast by Eutelsat satellites stood at 5,788. Excluding Satmex’s 322 channels as of the end of the quarter, the channel count was up 16% year-on-year to 753. Including Satmex, 629 channels were broadcast in high definition, up from 439, implying a penetration rate of 10.9%, compared with 9.3% at 30 September.
Commenting on the first quarter, Michel de Rosen, Eutelsat chairman and CEO, said: “Like-for-like revenue growth of 4.2% for the first quarter was in line with our objectives, and we are on track to deliver on our full-year financial targets. Our core video activity saw a further pick-up in revenue growth reflecting capacity added in the past year serving high-growth markets…Our order backlog stood at €6.3 billion, representing over 4.5 years of revenues and continuing to lend strong visibility to our business. The Satmex acquisition and the rollout of our targeted fleet deployment plan mean we are well positioned to capture the growth opportunities we have identified in our sector. The underlying drivers in our core applications remain positive.”
Rosen also pointed to more revenues from Nilesat’s long-term lease on the EUTELSAT 8 West B satellite to be launched in 2015, confirming the continued strong potential at 7°/8° West, which is the leading video neighbourhood in the Middle East and North Africa.