Video boosts Eutelsat in fiscal 2014/15

DetailsEditor | 30 July 2015

Leading satellite operator Eutelsat has revealed a solid fiscal 2014/15, with rising revenues driving high levels of profitability.

For the year ended 30 June 2015, Eutelsat posted revenues of 1.476 billion, up 4% on a like-for-like basis, driving an EBITDA margin of 76.7%. On a reported basis revenues were up 9.5%, taking into consideration the impact of changes in perimeter including the acquisition of Satmex and disposal of the KabelKiosk video-on-demand (VOD) division.

Video applications accounted for almost two-thirds (63%) of 2014/15 revenues, up 3.5% on a like-for-like basis to 913 million. This mainly reflected the entry into service of the Express-AT1 in May 2014; contribution from Eutelsat Americas; resources added in September 2013 to the 7/8 West position, covering MENA, and growth at 16 East for Sub-Saharan Africa and Central Europe, 36 East (Russia and Sub-Saharan Africa) and 7 East (Middle East and Africa). Fourth quarter revenues amounted to 235.3 million, up 3.3% like-for-like on a year-on-year basis, and by 3.3% quarter-on- quarter as African contracts ramped up.

That said, there was some revenue slippage due to renegotiation of contracts with Russian customers for around 2 million, as well as lower revenues at 28.5 East and the non-renewal of contracts with some service providers at the HOT BIRD position.

The year ended with Eutelsat broadcasting 5,793 channels, up by 47, with HDTV penetration continuing to increase, now representing 11.9% of channels compared with 10.2% a year earlier. A total of 687 HDTV channels were broadcast across the Eutelsat fleet, up from 584 a year earlier

Commenting on the annual results, Michel de Rosen, chairman and CEO of Eutelsat Communications, said: "The past year has seen a number of significant commercial successes notably renewals at the HOT BIRD and 16 East video neighbourhoods, as well as several contract wins in Africa and MENA, and a strong performance by Satmex, that now operates as Eutelsat Americas. All applications contributed to growth ... Revenues will continue to be underpinned by our solid backlog, representing over four years of revenues, as well as the positive dynamics in our targeted growth markets and applications. We remain committed to generating value for our shareholders, with a proposed dividend this year up 6% to 1.09, representing a payout ratio of 70%."