Eutelsat meets full-year financial objectives

Eutelsat delivered on its financial objectives for full year 2017/18, despite reporting a decline in revenue and earnings.

For the year ended June 30, the company reported revenue of €1.41 billion, down 4.7% year-on-year but above analyst expectations. EBITDA dropped 5% to €1.08 billion.

Video applications, which account for 66% of the company’s revenues, contributed €897.3 million across the year, down 0.7% on a like-for-like basis.

Eutelsat said that revenues from broadcast were slightly up excluding the impact of the end of the TV d’Orange contract at the Hotbird position, with a “solid performance” in key emerging markets –  notably MENA at the 7/8° West orbital position and Russia at the 36°East and 56°East orbital positions

“Professional Video continued to decline reflecting ongoing pressure on point-to-point services,” said the company’s earnings statement. “Fourth Quarter revenues stood at €223.1 million, broadly flat year-on-year and down 0.8% quarter-on-quarter.”

As of June 30, Eutelsat’s satellites broadcast a total of 6,929 channels, an increase of 299 compared to a year earlier. High definition penetration also continued to increase, representing 21.0% of channels compared to 17.2% a year earlier – a total of 1,455 channels.

“I’m pleased to report that we fully delivered on all of our financial objectives for the second year in a row,” said Eutelsat CEO Rodolphe Belmer. “In particular, I would highlight the progressive improvement throughout the year for the five operating verticals.”

“Moreover, in terms of financial discipline, we are ahead of plan on the LEAP cost savings program. Elsewhere, the successful application of our design-to-cost policy – clearly illustrated in the renewal of the Hotbird constellation – will enable us once again to reduce our capex envelope in the coming years, while the disposal of our stake in Hispasat enhanced our deleveraging efforts.”