Eutelsat Revenues Up 5.1% to €1.28-B for 2012-2013
Paris, July 30, 2013 — Eutelsat Communications on Tuesday reported a 5.1 percent increase in revenues to €1,284 million (US$1,703 million) and operating income before depreciation and amortization (EBITDA) of €995.3 million (US$1,320.22 million) equivalent to 77.5 percent margins for fiscal year 2012-2013.
The board recommended dividends of €1.08 (US$1.43) per share representing a payout of 67 percent.
The favourable results prompted the company to raise outlook to over 2.5 percent revenue growth for 2013–2014 and an average of over 5 percent for the two following years until 30 June 2016.
Eutelsat said it has order backlog close to €5.4 billion (US$7.16 billion), representing 4.2 years of revenues.
The company said Eutelsat’s EBITDA margin objective is around 77 percent for each fiscal year until 30 June 2016 with capital expenditure of €550 million (US$729.56 million) on average per year.
It is also aiming to maintain an investment grade rating and to deliver dividend payout ratio range of 65 to 75 percent.
Eutlesat's CEO Michel de Rosen said 2012–2013 revenue growth was fuelled by a robust performance from video activity, which rose 4 percent to €865.6 million (US$1.15 billion), but admitted data and multi-usage still face a more challenging environment.
“In value added services, traction is increasing on Ka-Sat for both consumer and professional services, reflecting the success of measures taken to enhance the product offer and distribution.” Rosen said the board’s recommendation of an 8 percent rise in dividend to 1.08 euros (US$1.43) per share reflects their confidence in the future of the business.
“Our industry is continuing to grow, albeit at a lesser pace than in the past decade. Several markets are still developing at a high pace — notably Russia, Central Asia and Africa, where we already enjoy strong positions, and Asia Pacific and Latin America, where we are actively developing our footprint, both organically, with, for example, the procurement of Eutelsat 65 West A announced today, and via targeted acquisitions,” Rosen said.
He said the focus in the coming years will be on expanding their presence in the markets and applications with the highest potential for growth on the back of a targeted fleet development plan, complemented where appropriate by external growth opportunities.
Growth in the past year was in particular driven by two video neighbourhoods — the 7°/8° West neighbourhood serving broadcasters in the Middle East and North Africa was dynamic, with the number of TV channels up 24 percent year-on-year to 662 (+128) and the 16° East neighbourhood, serving broadcasters in Africa, Indian Ocean Islands and Central Europe.
Revenue growth was also supported by contract renewals at the Group's leading broadcasting neighbourhood at 13° East. The number of channels broadcast by the three high-power Hot Bird satellites at this position stood at 1,082 at 30 June 2013, including 145 HD channels (+9%) giving a 13.4 percent HD penetration rate (up from 12.2 percent a year earlier).
Eutelsat said its data services revenues stood at €187.5 million (US$248.71 million), reflecting the integration of Eutelsat 172A into the fleet.
The take-up of the additional capacity provided by Eutelsat 21B and Eutelsat 70B was slower than expected during the year. Markets for point-to-point services remain poor as a result of terrestrial network (fibre) deployment and the increase in supply of satellite capacity, notably in Africa.
Eutelsat observed that demand continues to be dynamic for corporate networks and mobility in fast-growing regions, notably Africa and Asia Pacific, with new and renewal contracts signed with customers that include Algérie Télécom for VSAT networks across Algeria, and Australian Satellite Communications for Panasonic Avionics Corp., the world leader in in-flight entertainment.
Revenues from value-added services, which includes broadband services targeting consumers and businesses, increased by 30.7 percent to €65.3 million (US$86.62 million).
The number of transponders leased on Eutelsat's fleet grew during the fiscal year by 4.8 percent to 635 at 30 June 2013. The fill rate stood at 74.0 percent at 30 June 2013, compared to 75.6 percent a year earlier, after the entry into service of three satellites, two of which (Eutelsat 21B, Eutelsat 70B) brought significant incremental capacity.
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