Broadcast shows resilience in tough third quarter for Eutelsat

[tokoroko]

Broadcast shows resilience in tough third quarter for Eutelsat
Details
Editor
| 15 May 2020

Even though its operating verticals’ revenues were down year-on-year, satellite operator Eutelsat has reported what it believes is a satisfying third quarter of its financial year, especially where its broadcast division is concerned.

For the third quarter of the year ended 31 March 2020, Eutelsat announced total revenues of €322.0 million, down 4.4% year-on-year with revenues for its five operating verticals slipping annually 0.5% on a reported basis and by 1.6% on a like-for-like basis. This excluded a positive currency effect of circa 1.1 points.

Yet unlike some of its competitors which saw a continued decline in broadcasting business, Eutelsat revealed a positive quarter for broadcasting which now accounts for 62% of Eutelsat’s overall revenues. Third quarter broadcast revenues were stable at €198.8 million on a year-on-year basis, reflecting said the company the carry-forward effect of the return of a number of transponders in Russia in July and higher revenues notably in MENA and at the prime video neighbourhood of 28.5°East.

On a quarter-on-quarter basis, total broadcast revenues actually rose by 2.1%, including a positive one-off for around €1 million.

As of 31 March 2020, the total number of channels broadcast by Eutelsat satellites stood at 6,867, down 2% year-on-year but stable quarter-on-quarter. On a year-on-year basis, HD channels rose by 10% to 1,667, implying said Eutelsat a penetration rate of 24.3% compared to 21.5% a year earlier. During the quarter, the company’s EUTELSAT 7C entered into service, bringing 19 incremental transponders to the African market and these are expected to gradually ramp-up; elsewhere EUTELSAT 5 WEST B entered into service, replacing EUTELSAT 5 West A.

Eutelsat’s order backlog stood at €4.2 billion at 31 March 2020 compared with €4.3 billion at end-December 2019 and €4.4 billion a year earlier reflecting said the firm natural backlog consumption in the absence of material broadcast renewals. It was equivalent to 3.2 times 2018-19 revenues. Broadcast represented 67% of the backlog.

[tokoroko]

Broadcast remains resilient amid Covid crisis for Eutelsat
May 15, 2020 13.06 Europe/London By Julian Clover
Eutelsat Communications says its full year results are unlike to see a major impact from the Coronavirus pandemic.
The Paris-based satellite operator reported revenues down 1.6% year-on-year; but up 1.2% quarter-on-quarter.
Broadcast in particular helped Eutelsat deliver revenues in line with expectations. The sector returned to quarterly growth thanks to a new DTH platform in Sub-Saharan Africa and the extension of a contract in the Balkans.
Eutelsat 7C has also entered into service in the quarter, bringing 19 incremental transponders to the African market, while Eutelsat 5 West B took over duties from Eutelsat 5 West A.