Eutelsat’s revenues dipped in the six months to December 2017 but were in line with the company’s and market’s expectations.
At €696.6 million, they were 7.7% lower on a reported basis and 5.7% down like-on-like on the €755.1 million total posted a year earlier.
EBITDA amounted to €544.6 million (-7.4%) and the group share of net income €156.5 million (-18.6%).
Video applications, which accounted for 66% of revenues, fell by 1.2% like-for-like to €449.2 million. However, broadcast revenues were up 0.3% excluding the carry-forward impact of the termination of the TV d’Orange contract last year, with growth coming predominantly from MENA.
On the other hand, second quarter revenues (for the quarter ending December 31) were flat on a q-o-q basis and down 1.6% y-o-y.
As of December 31, the total number of channels broadcast by Eutelsat satellites stood at 6,810, up 7.4% y-o-y. HD penetration continued to increase, standing at 1,275 channels versus 997 a year earlier (+28%), implying a penetration rate of 18.7% compared to 15.7% a year earlier.
Commenting on the results, Rodolphe Belmer CEO of Eutelsat Communications, said: “First half results were in line with our expectations, with the decline in revenues mostly reflecting, as in the first quarter, an unfavourable comparison basis in FY 2017. Profitability was robust, with the EBITDA margin gaining 0.5 points at constant currency to stand at 78.4%, reflecting stronger than expected delivery on the Leap cost savings plan; and we generated an 8% rise in discretionary free cash flow at constant currency, supported by highly effective capex containment. The first half also saw a solid commercial performance, notably in Video and Government services, as well as the entry into service of Eutelsat 172B, both of which will support revenues in the second half. The integration of Noorsat, acquired to optimise video distribution in the MENA region, is progressing smoothly. Looking ahead to the remainder of the year, all elements of our financial objectives are confirmed.”
