Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — Q1 2020-21 Earnings Presentation
23 slides from Eutelsat Communications Sa's earnings presentation, Oct 29, 2020
Slide 1: First Quarter 2020-21 Revenues
FIRST QUARTER 2020-21 REVENUES 29 October 2020
Slide 2: Agenda
AGENDA 1. Key Events 2. Q1 2020-21 Performance 3. Outlook 2
Slide 3: Highlights
HIGHLIGHTS • General resilience of our activity in the Covid context Renewal of Sky Italia contract at HOTBIRD securing • broadly stable revenues in the medium term • Significant steps in our Fixed Broadband strategy • All financial objectives confirmed 3
Slide 4: Q1 Revenues: Confirmed Resilience in Covid Context
Q1 REVENUES: CONFIRMED RESILIENCE IN COVID CONTEXT Q1 Y-o-Y revenue bridge (€m) Total revenues of €315m, down 0.7% Negative currency effect -1.9% • €/$ rate of 1.16 vs 1.12 last year +8 Positive swing of €8m in ‘Other Revenues’ • o/w €4m related to hedging (6) (4) Revenues of the Operating V
Slide 5: Sky Italia: Strategic Renewal at HOTBIRD
SKY ITALIA: STRATEGIC RENEWAL AT HOTBIRD ANCHOR CUSTOMER AT KEY TERMS TAKE-AWAYS HOTBIRD Share of total Group Revenues Multi-year agreement Unmatched coverage of HOTBIRD Secured backlog of c.€450m Confirming the ongoing relevance 6% Future extension options of satellite for linear distribution in
Slide 6: Commercial Activity
COMMERCIAL ACTIVITY Broadcast Other applications Renewal with Sky Italia Government Services: Fall 2020 renewal rate with USG at c.80% Extension of contract duration with Tricolor TV (Russia) and Azam TV (SSA) Fixed Broadband: Distribution Agreement with Paratus for South-Africa New contra
Slide 7: Preparing for Return to Growth in Fixed Broadband
PREPARING FOR RETURN TO GROWTH IN FIXED BROADBAND March 20 June 20 Sept 20 Nov 20 MoU with Wholesale agreement BBB Start of progressive Schoolap in with Orange for French acquisition1 entry into service of DRC capacity on adding retail EUTELSAT EUTELSAT KONNECT pillar in Europe KONNECT2 Ongoing test
Slide 8: Agenda
AGENDA 1. Key Events 2. Q1 FY 2020-21 Performance 3. Outlook 8
Slide 9: Q1 FY 2020-21 Revenues by Application
Q1 FY 2020-21 REVENUES BY APPLICATION REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 (€m) YOY CHANGE BROADCAST 62% 191 -1.5% DATA & 13% PROFESSIONAL 40 -6.2% VIDEO GOVERNMENT 12% SERVICES 38 +0.7% FIXED BROADBAND 7% 21 +3.8% MOBILE CONNECTIVITY 6% 18 -7.2% TOTAL OPERATING VERTICALS 307 -1.9% OTHER RE
Slide 10: Broadcast
BROADCAST 62% Q1 revenues of €191m, down 1.5% YoY like-for-like1 785 785 • Impact of the renegotiation of contract terms with Greece’s Forthnet • Positive one-off of circa €2m Q4 196 Channel count Q3 • 6,683 channels at end Sept. 2020, down 4% YoY 199 • HD up from 22.7% to 26.0% implying a 10% Y
Slide 11: Channel Count
CHANNEL COUNT 6,976 -4.2%% 6,683 • Lower line up at 5°W following E5WA end of life in stable orbit CHANNEL • Decrease in Sky Italia line-up COUNT • Negative impact of “technical” events (dual illumination, Sept. 2019 Sept. 2020 contribution) 1,582 1,739 • Double-digit growth in HD +9.9% • HD line-up
Slide 12: Resilience of Core Broadcast
RESILIENCE OF CORE BROADCAST BROAD STABILITY CHANNEL KPIs LEADING TO OF CORE BROADCAST SLIGHT GROWTH IN MBPS (EXCLUDING FORTHNET) CONSUMPTION EVOLUTION OF CORE BROADCAST REVENUES 6,548 + 2% 6,683 197 197 198 197 196 195 197 197 193 192 196 194 190 CHANNEL COUNT June 2017 ex. 25B Sept. 2020 1,739 1,0
Slide 13: Data & Professional Video
DATA & PROFESSIONAL VIDEO 13% Q1 revenues of €40m, down 6.2% YoY like-for-like1 175 Fixed Data Q4 • Highly competitive environment notably in LATAM 43 • Improved volume trends with notably the carry- Q3 forward effect of new business secured in MENA last FY 45 Q2 45 Professional Video still in
Slide 14: Government Services
GOVERNMENT SERVICES 12% Q1 revenues of €38m, up 0.7% YoY like-for- like1 • Negative carry-forward effect of last year USG 161 161 renewals • Incremental contribution from the EGNOS payload Q4 43 Revenues down 5.8% QoQ Q3 40 • Temporary relocation of the EUTELSAT 7A at 59° E in Q4 Q2 39 Fall 20
Slide 15: Fixed Broadband
FIXED BROADBAND 7% Q1 revenues of €21m, up 3.8% YoY like-for-like1 Covid context favourable to satellite broadband 77 77 Growth in Europe • Positive net adds for the second quarter in a row Q4 Q4 19 • Higher terminal sales in the Summer Q3 19 Q3 Ramp-up of go-to-market capabilities in Africa
Slide 16: Mobile Connectivity
MOBILE CONNECTIVITY 6% Q1 revenues of €18m, down 7.2% YoY like-for-like1 79 79 • Q1 of last fiscal year included a €1m negative one-off 17 Impact of Covid-19 crisis on aero Q4 mobility 21 • Low level of airtime-related revenues on KA- Q3 SAT • Lower revenues from certain service providers Q2 22
Slide 17: Backlog & Fill Rate
BACKLOG & FILL RATE BACKLOG (€BN) OPERATIONAL & UTILIZED TRANSPONDERS Fill rate 69.7% 69.7% 69.9% 4.4 4.2 4.1 1,387 1,376 1,382 966 960 966 Operational Transponders Broadcast 72% 68% 70% Utilized Transponders 30 Sept. 2019 30 June 2020 30 Sept. 2020 30 Sept. 2019 30 June 2020 30 Sept. 2020 • Backlog
Slide 18: Agenda
AGENDA 1. Key Events 2. Q1 FY 2020-21 Performance 3. Outlook 18
Slide 19: Imminent Entry into Service of EUTELSAT KONNECT
IMMINENT ENTRY INTO SERVICE OF EUTELSAT KONNECT Gradual entry into service from early November • 80% of the capacity in service by year-end Covering both Europe and Africa • Circa 55% Europe • Circa 45% Africa Superior economic performance vs existing assets • 75 Gbps of capacity with lower co
Slide 20: Financial Outlook Confirmed
FINANCIAL OUTLOOK CONFIRMED OPERATING VERTICALS ► Between €1,180m and €1220m in REVENUES1 FY 2020-21 ► Not exceeding average of €400m2 CASH CAPEX per year for the period July 2020 to June 2022 ADJUSTED ► Between €420m and €450m DISCRETIONARY FREE CASH FLOW3 in FY 2021-22 ► Maintain investment grade
Slide 21: Targeted Growth Capacity to Progressively Support Topline
TARGETED GROWTH CAPACITY TO PROGRESSIVELY SUPPORT TOPLINE Incremental capacity Key markets CY 2020 CY 2021 CY 2022 CY 2023 Jan. Video 19 Ku Sub-Saharan EUTELSAT 7C Africa Jan. Nov. ‘20 to early ‘21 65 Ka spotbeams Broadband KONNECT 75 Gbps Europe/Africa Q1 Q2 EUTELSAT 8 “QUANTUM” Government QUANTUM
Slide 22: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
Slide 23: Future Launches
FUTURE LAUNCHES KONNECT EUTELSAT EUTELSAT EUTELSAT 10B NAME VHTS HOTBIRD 13F HOTBIRD 13G Orbital 48°East TBD 13° East 13° East 10° East Position Launch date1 Q1 2021 H2 2021 H2 2021 H2 2021 2022 Manufacturer Launcher TBD TBD TBD TBD Coverage Flexible Europe Europe Europe EMEA, Atlantic & Indian Ocea
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