Eutelsat H1 revs rise slowly as it passes 6,000 TV channel milestone


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Joseph O'Halloran

| 17 February 2016




Just as it reports that first-half revenues were up 1.5% on a like for like-for-like basis, satellite operator Eutelsat is celebrating passing the 6,000-channel landmark for its craft.



RTVN 17 Feb 2016 EutelsatFor the first half of the year ended 31 December 2015, Eutelsat posted revenues of €774 million with an EBITDA margin of 77.5%. Net attributable income was €188 million, up 17.0% with a net margin of 24%. The company also said that it now has an order backlog of €5.8 billion, almost four years’ worth of revenues.

Video applications account for almost two-thirds of these and this vertical sector’s revenues were up 1.5% year-on-year at constant currency to €468.9 million. Eutelsat attributed this rise to the entry into service of EUTELSAT 8 West B at the beginning of the second quarter, bringing incremental capacity to the MENA region. Growth was also driven by positive trends at Fransat, Eutelsat’s direct-to-home (DTH) platform serving TV homes in France, and at the 7° East (Turkey, East Africa) and 16° East (Central Europe, Sub-Saharan Africa) orbital positions.

Balancing this though was what the company called the ‘negative impact’ of contract renegotiations with Russian customers as well as lower revenues at the HOT BIRD position following the non-renewal of contracts with some service providers in 2015.

Also at 31 December 2015, the total number of channels broadcast by Eutelsat satellites had crossed the threshold of 6,000, up 4.6% (or 263 channels) year-on-year. HDTV penetration stood at 757 channels versus 657 a year earlier, representing a penetration rate of 12.6% compared with 11.4% a year earlier. Three Ultra HD channels are now broadcasting on the fleet, one at the HOT BIRD position (FunBox 4K) and two at 36° East (Insight UHD and Tricolor UHD).

Commenting on the new milestone of 6,000 channels and the performance of the video business, Michel Azibert, commercial and development director at Eutelsat, said: “Broadcasting is at the heart of Eutelsat’s DNA ... In the fast-evolving world of video content distribution we are continually focused on supporting broadcasters to enhance their relationship with viewers and expand their reach. The milestone of 6,000 channels sets a new record for Eutelsat and reflects our resolve to be the satellite company of choice for the broadcasting community.”