Satellite operator Eutelsat’s chairman and CEO Michel de Rosen said the company is on track to meet its full-year objectives after recording respectable first-half organic growth of 4.3%, despite expectations of a tougher second half by comparison with last year and problems in the Russian market.
Overall, Eutelsat reported revenue growth of 11.6%, thanks in part to its Satmex acquisition, taking the first half total to €722.8 million. The group reported EBITDA of €559.6 million, up 11.6%. Group debt increased by 36.3% to €3.8 billion, excluding €537 million related to the Satmex acquisition which was treated as cash in the net debt calculation.
“Eutelsat’s half year results were in line with objectives, with like-for-like revenue growth of 4.3%, and an EBITDA margin of 77.4%. Video revenues are benefiting from additional capacity launched last year and from the positive dynamics of the Latin American market. Revenue trends in Data showed a slight improvement, while Value-Added Services reflected uptake on Ka-Sat. In Government Services new contracts offset the lower renewals of the previous twelve months. A year on from its consolidation, Satmex continues to deliver in line with expectations and contributed positively to all applications,” said De Rosen.
“Based on performance of the first half, we remain on track to meet our full year objectives, in the context of a tougher comparison basis in the second half and the current environment in Russia. Our targets for the next two years are also confirmed. We are confident in the longer-term demand trends in our industry, and we are investing in our future development with industry-leading innovation projects like Eutelsat Quantum.”