Eutelsat Communications Reports Record Revenue Growth in the First Quarter 2009-2010: +11.6%

Eutelsat Communications Reports Record Revenue Growth in the First Quarter 2009-2010: +11.6%

PARIS, November 5/PRNewswire-FirstCall/ --

          - Strong Revenue Increase Across All Business Applications:      - Video: +8.5%, Driven by Take-up of Digital TV in Emerging Markets and       by Growth of HDTV      - Data and Value-Added Services: +16%, Continued Solid Demand, Notably in       Africa and the Middle East  

Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL), one of the world's leading satellite operators, today reported financial information for the first quarter ended September 30, 2009.

          Revenues by business application                                               First quarter ended   Change                                                    September 30     In millions of euros                        2008         2009     In %      Video Applications                         166.7        180.8    +8.5%     Data & Value Added Services                 41.1         47.7   +16.0%     Multi-usage                                 15.6         22.9   +46.2%     Others                                       3.2          1.7       -     Total                                      226.7        253.0   +11.6%[1]  

Commenting on performance during the first quarter 2009-2010, Giuliano Berretta, Chairman and CEO of Eutelsat Communications said: "Eutelsat Communications' double digit revenue growth for our first quarter testifies to the success of our in-orbit expansion programme, which in combination with excellent commercial performance, has enabled us to leverage new capacity for markets recording the most buoyant growth. Following the entry into service in the second half of the 2008-2009 financial year of three satellites and the redeployment of five satellites already in orbit, our expansion programme takes a new step forward later this month with the launch of W7 to serve particularly dynamic broadcast and telecom markets in Russia, the Ukraine, Africa and Central Asia. Four more satellites are scheduled for launch by the end of 2011 to drive further growth.

Our commercial efforts are supported by the ongoing dynamic of digital broadcasting and broadband services. Positioned at the heart of our business, these two activities fundamentally require satellites to serve users directly and to feed or complement terrestrial networks. Our video business has also benefited from the expansion of HDTV which requires on average 2.5 times the bandwidth used by a Standard Digital channel. Meanwhile, increased initiatives at national and regional levels to deliver broadband to users beyond range of ADSL are stimulating demand for our value-added broadband services for businesses, communities and consumers.

With the pursuit of our ambitious strategy, backed by strong structural assets and markets showing significant potential for growth, Eutelsat can be confident of meeting our objectives and continuing our trajectory of lasting and profitable growth."

FIRST QUARTER 2009-2010 REVENUE ANALYSIS

Note: Unless otherwise stated, all growth indicators or comparisons are made against the first quarter of the previous fiscal year or September 30, 2008. The share of each application as a percentage of total revenues is calculated excluding "other revenues" and "one-off revenues".

The excellent performance achieved in the first quarter (+11.6%) reflects strong growth across all applications. The period fully benefited from an increase in in-orbit resources following the entry into service of three satellites over the last nine months and the redeployment of five satellites already in orbit. This additional capacity enabled Eutelsat to leverage the strong commercial momentum of buoyant markets in Central and Eastern Europe, the Middle East and Africa.

VIDEO APPLICATIONS (71.9% of revenues)

Video Applications registered sustained increase in revenue (+8.5%) to EUR180.8 million. With 3 329 TV channels broadcast by Eutelsat's fleet at September 30, 2009 (+4.7%), Eutelsat further consolidated the commercial strength of its nine video neighbourhoods.

          This strong performance was driven by the following:      - For European markets, the successful launch of HOT BIRD(TM) 9 and the       redeployment of EUROBIRD(TM) 9A[2] and EUROBIRD(TM) 16[3] further       anchored the leadership of the premium HOT BIRD(TM) video       neighbourhood, and enabled the Group to increase capacity at 9 degrees       East and 16degrees East in order to enhance customer service.        Growth in the first quarter consequently reflects the full effect of       contracts concluded over the last nine months through dynamic       management of in-orbit resources. Significant long-term contracts       include Sky Italia (Italy) and Cyfrowy Polsat (Poland) at the       HOT BIRD(TM) position, contracts at 9 degrees East with Hello HD       (Hungary) and Platforma HD (Russia) and at 16 degrees East with SBB       (Serbia) for the Total TV platform and with Globecast to broadcast       channels produced by TVR, Romania's national public broadcaster.      - In Middle East and African markets, Eutelsat's broadcasting resources       at 7 degrees West almost doubled with the entry into service of       ATLANTIC BIRD(TM) 4A. This satellite equips the Group to capture       opportunities presented by the rapid take-up of digital TV in these       regions within the framework of the strategic agreement concluded with       the Egyptian operator, Nilesat. The number of channels broadcast at       this neighbourhood rose by 64% year-on-year to 247 channels at       September 30, 2009.      - High Definition TV which increased at each of the Group's video       neighbourhoods. In total, the number of HDTV channels broadcast by       Eutelsat's fleet rose by over 60% during the period to break the       barrier of 100 channels. With a share exceeding 40% of HDTV channels       broadcast over Europe, Russia and the Middle East, Eutelsat reinforced       its pole position in this growing market.  

DATA AND VALUE-ADDED SERVICES (19% of revenues)

The 17.8% increase in Data Services revenues at EUR36.9 million shows strong demand for capacity for corporate networks and GSM backhaul in Africa, Central Asia and the Middle East and for Internet backbone connectivity for local Internet Service Providers operating in areas unserved by terrestrial networks. Revenue growth reflects in particular:

          - The activation of recently signed contracts, notably with British       Telecom and Hughes Network Systems;      - The entry into service of the W2A satellite whose excellent coverage of       Europe and Africa enabled increased capacity to be leased in particular       by ACS Angola, Globecast, Telespazio, SkyVision and the London       Satellite Exchange (a subsidiary of Astrium Services).  

Revenue from Value-Added Services continued to rise steadily to EUR10.7 million (+10.3%) as a consequence of sustained demand for direct Internet access from enterprises and communities located in areas unserved by terrestrial broadband networks, and also for mobile services. With an installed base of 10,028 terminals at September 30, 2009, the D-STAR[4] service gained further marketshare in the first quarter with new contracts including its selection to deliver a satellite-based broadband service to 470 Moroccan schools in rural areas. The Tooway(TM)[5] consumer broadband service, with 48 distributors in 22 countries at September 30, 2009, is gaining increasing interest from governments and institutions as a solution to the digital divide. Within the framework of Ireland's National Broadband Scheme, Tooway(TM) was recently selected by the Irish mobile broadband provider "3" and Satellite Broadband Ireland in order to offer broadband to the 5 to 8% of Irish homes beyond reach of terrestrial broadband networks.

MULTI-USAGE (9.1% of revenues)

Multi-usage services (up 46.2% to EUR22.9 million) benefited from the entry into service in June 2009, of the EUROBIRD(TM) 4A satellite (redeployment of W1 satellite at 4degrees East) which allowed the Group to activate new contracts for government services, notably in Central Asia and the Middle East.

Other revenues and one-off revenues

The slight EUR1.5 million decrease in other revenues is mainly due to lower currency hedging gains which were relatively high in the first quarter of the previous fiscal year.

UPCOMING SATELLITE LAUNCH: W7

The Group continues to execute its in-orbit expansion programme which encompasses the launch of five satellites by end 2011. The W7 satellite is currently in final stages of preparation for launch on November 23, 2009 from the Baikonour Cosmodrome on a Proton Breeze M rocket operated by International Launch Services (ILS).

Built for Eutelsat by Thales Alenia Space, Eutelsat's newest and most powerful satellite to date will be colocated with W4 at 36degrees East to double resources at one of Eutelsat's fastest-growing neighbourhoods.

Through a configuration of up to 70 transponders connected to five high-performance fixed and steerable beams, W7 will provide coverage of Russia and sub-Saharan Africa for digital broadcasting services including pay-TV, and add significant resources and flexibility for expanding video and telecommunications markets in Europe, Africa, the Middle East and Central Asia. The satellite will also enhance service provided since 2000 by SESAT 1, which after W7's entry into service at 36degrees East will be redeployed at an alternative location.

Financial calendar

The financial calendar below is provided for information purposes only. It is subject to change and will be regularly updated.

          - November 10, 2009: Annual Shareholders' Meeting      - February 18, 2010: earnings for the first half ended December 31, 2009      - May 12, 2010: financial report for third quarter ended March 31, 2010      - July 29, 2010: earnings for the full year ended June 30, 2010  

About Eutelsat Communications

Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is the holding company of Eutelsat S.A.. With capacity commercialised on 27 satellites that provide coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, Eutelsat is one of the world's three leading satellite operators in terms of revenues. At 30 September 2009, Eutelsat's satellites were broadcasting 3,300 television channels and 1,100 radio stations. More than 1,000 channels broadcast via its HOT BIRD(TM) video neighbourhood at 13 degrees East which serves over 123 million cable and satellite homes in Europe, the Middle East and North Africa. The Group's satellites also serve a wide range of fixed and mobile telecommunications services, TV contribution markets, corporate networks, and broadband markets for Internet Service Providers and for transport, maritime and in-flight markets. Eutelsat's broadband subsidiary, Skylogic, markets and operates services through teleports in France and Italy that serve enterprises, local communities, government agencies and aid organisations in Europe, Africa, Asia and the Americas. Headquartered in Paris, Eutelsat and its subsidiaries employ 615 commercial, technical and operational employees from 28 countries.

http://www.eutelsat.com

                                        Appendix      Revenue breakdown by application (in percentage of revenues)*      3 months ended 30 September               2008         2009      Video Applications                       74.6%        71.9%     Data & Value-Added Services              18.4%        19.0%     ........of which Data Services           14.1%        14.7%     ........of which Value-Added Services     4.3%         4.3%     Multi-usage                               7.0%         9.1%     Total                                     100%         100%      * excluding other revenues and one-off revenues (EUR3.2 million in Q1       2008-2009 and EUR1.7 million in Q1 2009-2010)  

          Quarterly revenues by business application                                          3 months ended      In millions    30/09/2008  31/12/2008  31/03/2009  30/06/2009  30/09/2009     of euros      Video Applications  166.7       169.8       172.3       170.8       180.8     Data & Value-Added     Services             41.1        43.2        42.3        46.4        47.7     ....of which Data    31.4        33.1        33.1        36.6        36.9         Services     ....of which          9.7        10.1         9.2         9.8        10.7         Value-Added         Services     Multi-usage          15.6        19.3        19.7        20.8        22.9     Other                 3.2         4.5         2.2         0.8         1.7     Sub-total           226.7       236.8       236.5       238.8       253.0     One-off revenues[6]     -           -           -         1.8           -          Total               226.7       236.8       236.5       240.5       253.0  

          Estimated satellite launch schedule      Satellite            Expected orbital   Estimated launch    Transponders                              position      W7                    36degrees East    23 November 2009       70 Ku     W3B                   16degrees East        Q2 2010        53 Ku / 3 Ka     KA-SAT                13degrees East        Q4 2010        > 80 Ka beams     W3C                    7degrees East        Q3 2011            56 Ku     ATLANTIC BIRD(TM) 7    7degrees West        Q4 2011            50 Ku      Note: Satellites generally enter into service one to two months after     launch.      Eutelsat's fleet changes since Q4 2008-2009:      - April 2009: entry into service of ATLANTIC BIRD(TM) 4A at 7degrees West       to serve North Africa and Middle-East ;      - May 2009: entry into service of W2A at 10degrees East for Data and       Value-Added Services in Ku-band and C-band ;      - May 2009: redeployment of ATLANTIC BIRD(TM) 4 (renamed EUROBIRD(TM) 16)       at 16degrees East for Central Europe ;      - June 2009: redeployment of W1 (renamed EUROBIRD(TM) 4A) at 4degrees       East for Multi-usage services.      ---------------------------------      [1] At constant exchange rate, revenue growth would have been 11.9%      [2] Previously HOT BIRD(TM) 7A      [3] Previously ATLANTIC BIRD(TM) 4      [4] The D- STAR service provides Internet access and Virtual Private         Networks to enterprises and institutions in regions with inexistent         or unreliable terrestrial broadband infrastructure.      [5] The Tooway(TM) service, both in Ka-band and Ku-band, provides broadband         access to homes beyond range of terrestrial networks.      [6] Non-recurring revenues comprise late delivery penalties and outage         penalties.  

          For further information      Press      Vanessa O'Connor        Tel: +33-1-53-98-38-88      voconnor@eutelsat.fr                             Frederique Gautier      Tel: +33-1-53-98-38-88               fgautier@eutelsat.fr                             Investors      Gilles Janvier          Tel: +33-1-53-98-35-30     investors@eutelsat-communications.com  

Source: Eutelsat Communications

For further information: Press: Vanessa O'Connor, Tel. : +33-1-53-98-38-88, voconnor@eutelsat.fr; Frederique Gautier, Tel. : +33-1-53-98-38-88, fgautier@eutelsat.fr; Investors: Gilles Janvier, Tel. : +33-1-53-98-35-30, investors@eutelsat-communications.com

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