Eutelsat saw a sharp reduction in its Q1 revenues, which fell 9.3% on a reported basis and 6.7% lower like-for-like to €378.7 million.
In the same quarter in 2016, they total stood at €378.7 million. Within the latest figures, video applications, at €223.3 million and accounting for 65% of the total, were 0.8% lower on a like-for-like basis compared to the 2016 total.
As of September 30, the total number of channels broadcast by Eutelsat stood at 6,755, up 6.6% year-on-year. The number of HD channels was 1,210 (940), up 28.7% and representing 17.9%(14.8%) of the total.
Commenting on the results, CEO Rodolphe Belmer said: “First quarter revenues were in line with our expectations. Our key operational metrics were well oriented with a further rise in HD penetration, a stabilisation of the backlog and an improved fill rate on a quarter-on-quarter basis. The fall renewal campaign with the US government yielded a favourable outturn, at some 95% in value while the outcomes of video renewals during the quarter were positive, notably with Polsat on Hotbird. Elsewhere we took further measures to optimise video distribution with the absorption of Noorsat in the MENA region.
“For the remainder of the year, revenues in our core businesses are on track, and mobility will further benefit from the entry into service of Eutelsat 172B in November. However, the late availability of the payload leased on the Al Yah 3 satellite, representing the majority of the capacity dedicated to Konnect Africa, will push out revenues in fixed broadband. In recognition of this delay, revenue expectations for FY 2017-18 are mechanically adjusted from ‘broadly stable’ to between -1 and -2%. This adjustment will not affect our ability to attain our other objectives, in particular EBITDA margin and discretionary free cashflow, which are all re-affirmed for the current and future years.”
