Solid quarter for Eutelsat

Satellite operator Eutelsat reported another solid set of quarterly results, with revenues up 3.4% year-on-year to €295.4 million.

Video applications remains the largest sector in terms of revenues, contributing revenues of €198.2 million in the first quarter 2012, up 1.4%. The number of TV channels broadcast across Eutelsat’s fleet continued to increase, reaching a total of 3,952 at the end of September 30, up 252, from the same period last year. The number of HD channels broadcast by Eutelsat’s fleet reached 239, up from 192.

The operator saw strongest growth from its multi-usage segment, which saw revenues increase 25.8% year-on-year to 36.2 million. It put the growth down to strong demand for government services, driven by the renewal of capacity from existing contracts as well as new contracts signed during the quarter on satellites covering North Africa and the Middle East.

Commenting on the first quarter, Michel de Rosen, Eutelsat CEO said, “Eutelsat generated revenue growth of 3.4% in the first quarter. This reflects a temporary transitional period for the Group until current capacity constraints, resulting from two years of stronger than expected up-take of our in-orbit resources, are alleviated. Two new satellites, Atlantic Bird 7 and W3C, will enter into full commercial service during the second quarter. Both of these satellites cover fast-growing video markets including the Middle East, North Africa and central Europe. The W3C satellite will also significantly expand our capacity to serve data markets in Europe, Africa, the Middle East, and central Asia. The availability of these replacement and expansion resources, and a further five satellites to be launched between now and June 2014, will enable us to meet continued solid underlying demand in our markets. We therefore confirm our revenue target for the current year of above €1,235 million, and of above 7% CAGR for the 2011-2014 outlook period accompanied by an EBITDA margin of above 77%.”