Broadcast shows resilience in tough third quarter for Eutelsat | Satellite | News | Rapid TV News
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Even though its operating verticals’ revenues were down year-on-year, satellite operator Eutelsat has reported what it believes is a satisfying third quarter of its financial year, especially where its broadcast division is concerned.
eutelsat 10August2018
For the third quarter of the year ended 31 March 2020, Eutelsat announced total revenues of €322.0 million, down 4.4% year-on-year with revenues for its five operating verticals slipping annually 0.5% on a reported basis and by 1.6% on a like-for-like basis. This excluded a positive currency effect of circa 1.1 points.

Yet unlike some of its competitors which saw a continued decline in broadcasting business, Eutelsat revealed a positive quarter for broadcasting which now accounts for 62% of Eutelsat’s overall revenues. Third quarter broadcast revenues were stable at €198.8 million on a year-on-year basis, reflecting said the company the carry-forward effect of the return of a number of transponders in Russia in July and higher revenues notably in MENA and at the prime video neighbourhood of 28.5°East.

On a quarter-on-quarter basis, total broadcast revenues actually rose by 2.1%, including a positive one-off for around €1 million.

As of 31 March 2020, the total number of channels broadcast by Eutelsat satellites stood at 6,867, down 2% year-on-year but stable quarter-on-quarter. On a year-on-year basis, HD channels rose by 10% to 1,667, implying said Eutelsat a penetration rate of 24.3% compared to 21.5% a year earlier. During the quarter, the company’s EUTELSAT 7C entered into service, bringing 19 incremental transponders to the African market and these are expected to gradually ramp-up; elsewhere EUTELSAT 5 WEST B entered into service, replacing EUTELSAT 5 West A.

The third quarter results showed that Eutelsat’s order backlog stood at €4.2 billion at 31 March 2020 compared with €4.3 billion at end-December 2019 and €4.4 billion a year earlier reflecting said the firm natural backlog consumption in the absence of material broadcast renewals. It was equivalent to 3.2 times 2018-19 revenues. Broadcast represented 67% of the backlog.