Eutelsat Communications revenue up 4.6% in Q3 FY12

Telecom Lead Europe: Eutelsat Communications, one of the
world’s leading satellite operators, has posted 4.6 percent increase in its
revenue at 308.7 euros million for the third quarter, against 295.2 million
euros last year.


The company posted 211 million euros for its
Video Applications, up 6.3 percent, as compared to 198.5 million euros a
year earlier.


Data & Value-Added Services fetched 57.9
million euros, declined by 1.6 percent as compared to 58.9 million a year


The company said that the video business reported strong
growth fuelled primarily from new in-orbit capacity that became operational in
late calendar 2011.


The in-orbit capacity at 7° west, a video neighborhood
for the Middle East and North Africa and 16° East for Central Europe and Indian
Ocean Islands helped in driving the growth of revenues.


Revenues from Multi-usage services rose 13.3 percent
to €37.0 million. The company said that this activity benefited from strong
commercial performance from contracts signed in 2011.


However, the February/March 2012 contract renewals
campaign proved more challenging than previous ones, resulting in a decrease in
volume relative to the high levels of previous years in certain regions.

Moreover, following the high level of activity in the
previous quarters, the fleet had limited available capacity for coverage in the
regions of highest demand, a situation which will also benefit from the launch


“Third quarter revenues were up 4.6 percent
with growth underpinned by a strong performance from our largest business,
Video Applications, which rose 6.3 percent. Eutelsat continues to benefit
from a resilient business model, while at 5.36 billion euros, our order backlog
assures our long-term visibility,” said Michel de Rosen, CEO of Eutelsat Communications.


The company said that some factors, however, are proving
more challenging, notably a more competitive environment in the Balkans and in
Africa, partial delays in the rollout of Ka-band professional services, and a
significant slowdown in the Multi-usage activity following the latest contract
renewal campaign.


The company expects revenues for the full year to be in
the region of 1.22 billion euros, compared with our previous estimate of above
1.23 billion euros. EBITDA should be around 955 million euros, implying a
robust EBITDA margin of 78 percent.


Eutelsat Tooway satellite service to boost broadband in France
for SFR affiliate


A few months back, NomoTech, a provider of wireless
broadband services, and Eutelsat Communications inked a deal to rollout the
Tooway satellite broadband service in France.


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