Eutelsat Communications SA · EURONEXT:ETL
Eutelsat Communications SA — Q1 2017-18 Earnings Presentation
21 slides from Eutelsat Communications SA's earnings presentation, Oct 26, 2017
Slide 1: First Quarter 2017-18 Revenues
FIRST QUARTER 2017-18 REVENUES 26 October 2017
Slide 2: Agenda
Agenda 1 Key events 2 Q1 2017-18 performance 3 Outlook 2
Slide 3: Key events
Key events First Quarter revenues of €349m Well-oriented operational metrics: stable Backlog rising Fill Rate and increased HD penetration quarter on quarter Positive outcome of Video renewals, notably with Polsat at HOTBIRD Streamlining of Video distribution in MENA with integration of Noorsat Favo
Slide 4: Q1 Revenues
Q1 Revenues Q1 YOY REVENUE BRIDGE (€M) -1% ► Q1 revenues of €349m • -9.3% reported (5) • -6.7% at constant perimeter and (6) currency (21) ► Underlying businesses down 385 (4) 1% excluding ‘Other’ revenues 349 Reported Currency Perimeter Change in Operational Reported Q1 2016-17 Other trend Q1 2017-
Slide 5: Agenda
Agenda 1 Key Events 2 Q1 2017-18 performance 3 Outlook 5
Slide 6: Q1 Revenues like-for-like by application
Q1 Revenues like-for-like by application REVENUE REVENUES LIKE-FOR-LIKE2 CHANGE CONTRIBUTION1 (€m) YoY QoQ CORE BUSINESSES Video 65% 223 -0.8% +0.7% Fixed Data 11% 37 -11.7% -4.7% Government 12% 41 +1.1% -2.0% Services CONNECTIVITY Fixed 7% 22 -9.7% -3.5% Broadband Mobile 5% 19 +33.3% +5.1% Connecti
Slide 7: Video
Video REVENUES2 (€M) ► Revenues of €223m, down 0.8% y-o-y like-for-like1 ► Broadcast up [0.5]% excluding carry- forward impact of termination of tV 908 d’Orange contract: • Growth in Russia at 36°and 56° East Q4 224 • And MENA at 7/8° West and 7° East ► Renewal with Polsat at the HOTBIRD Q3 228 posi
Slide 8: Focus on HOTBIRD KPIs
Focus on HOTBIRD KPIs 1,044 End of TV d’Orange 1,016 -43 Others Resilient channel count +15 Sept. 2016 Sept. 2017 +29% 290 225 Sustained HD ramp-up Penetration 21.6% 28.5% Sept. 2016 Sept. 2017 +9% 544 500 MPEG-4 more advanced than HD Penetration 47.9% 53.5% Sept. 2016 Sept. 2017 88
Slide 9: Acquisition of Noorsat: Streamlining Video distribution
Acquisition of Noorsat: Streamlining Video distribution INCREASE DIRECT CUSTOMER ACCESS BY INTEGRATING DISTRIBUTION Noorsat in a snapshot ► Increase our control over the commercial development of MENA ► One of the largest distributors Hotspots of video in MENA ► Increase our direct access to the end
Slide 10: Fixed Data
Fixed Data REVENUES2 (€M) ► Revenues of €37m, down 11.7% y-o-y like-for-like1 168 ► Ongoing tough environment in all Q4 41 geographies Q3 42 ► Continued price pressure Q2 41 Q1 43 Q1 37 FY 2016-17 FY 2017-18 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications at actu
Slide 11: Government Services
Government Services REVENUES2 (€M) ► Revenues of €41m, up 1.1% y-o-y like- for-like1 ► Stabilization of revenues reflecting 176 solid commercial performance in FY 2016-17 Q4 45 ► USG Renewal rate at almost 95% in Fall round Q3 45 • Volumes almost stable • Slight decline in price Q2 44 Q1 42 Q1 41 FY
Slide 12: Fixed Broadband
Fixed Broadband REVENUES2 (€M) ► Revenues of €22m, down 9.7% y-o-y like-for-like1 ► Y-o-Y variation reflecting mainly the absence of a one-off recognized last year: 96 • Related to the phasing of payments by Q4 23 a specific customer ► Definite delay to launch and entry into Q3 24 service of Al-Yah
Slide 13: Mobile Connectivity
Mobile Connectivity REVENUES2 (€M) ► Revenues of €19m, up 33% y-o-y like-for-like1 ► YoY variation reflecting: • Full-quarter impact of Taqnia contract • Continued growth on Widebeam 69 capacity with customers including Gogo, Hunter and Panasonic Q4 19 ► Revenues to benefit from entry into Q3 17 ser
Slide 14: Backlog and Fill Rate
Backlog and Fill Rate BACKLOG (€BN) OPERATIONAL AND LEASED TRANSPONDERS 1,327 1,372 1,374 5.4 5.2 5.2 0.8 0.8 0.7 948 931 940 Video 4.6 4.4 4.5 30 September 30 June 2017 30 September 30 Sept. 2016 30 June 2017 30 Sept. 2016 2016 2017 Fill rate 71.5% 67.9% 68.4% ► 3.5 years of revenues Operational tr
Slide 15: Agenda
Agenda 1 Key Events 2 Q1 2017-18 performance 3 Outlook 15
Slide 16: Progress on our priorities for FY 2017-18
Progress on our priorities for FY 2017-18 Return to broad stability at Polsat renewal with favourable HOTBIRD outcome Stimulate HD ramp-up HD penetration up c. 3 pts in Q1 and optimise Video distribution Integration of Noorsat Grow Cash Flow Stabilise Fill Data capacity Some improvement in volume re
Slide 17: 2017-18 revenue path back-end loaded
2017-18 revenue path back-end loaded Y-o-Y revenue trend to improve in future quarters QUARTERLY PROFORMA REVENUES IN FY 2016-17 ► Comparison base to become easier in coming quarters 379 • Lower ‘Other’ revenues 370 364 27 359 • End of TV d’Orange on 31 Dec 14 7 6 • Easier comps for Fixed Data ► Upl
Slide 18: Financial outlook
Financial outlook ► -1% to -2% in FY 2017-181 REVENUES Versus ‘broadly stable’ previously (At constant currency, and perimeter) ► Return to slight growth from FY 2018-19 EBITDA MARGIN ► Above 76% in FY 2017-18 (At constant currency) ► Above 77% from FY 2018-19 ► FY 2017-18 to FY 2019-20: CAPEX avera
Slide 19: Appendix
APPENDIX a eutelsat
Slide 20: Future launches
Future launches EUTELSAT EUTELSAT AFRICAN BROADBAND Name 7C 5 WEST B SATELLITE Orbital 7° East 5° West TBD TBD Position Launch date1 H2 2018 H2 2018 2019 2019 Manufacturer Launcher MENA Europe Flexible SSA Coverage SSA North Africa Video Video Government Broadband Applications Services Total Capacit
Slide 21: 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
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