Tough Q1 for Eutelsat as Nilesat renews long-standing contract | Satellite | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Even though it has extended its partnership with a key client in the MENA region, leading satellite operator Eutelsat has posted a mixed set of first quarterly results showing yet again how video business is sinking as connectivity gains a higher orbit.
Eutelsat 28 oct 2021
For the first quarter ended 30 September 2021, the company posted total revenues of €287.3, million down 8.9% on a reported basis and by 4.4% like-for-like compared with at the end of the same period a year ago. Revenues from the five operating verticals stood at €284.8 million. They were down by 3.4% on a like-for-like basis excluding a negative currency effect of around 0.7 points and a negative perimeter effect of almost 3 points deriving from the disposal of Euro Broadband Infrastructure (EBI) on 30 April 2021, only partly offset by the consolidation of Bigblu Broadband Europe since 1 October 2020.

At the end of the quarter, the company’s broadcast business accounted for 62% of its total revenues but the segment’s €177.6 million revenue, represented an annual fall of 6.5% year-on-year. The revenues were said to reflected the carry-forward effect of the slowdown in the pace of new business against the Covid backdrop which Eutelsat said notably affected resellers across Europe during FY 2020-21, as well as a negative impact of circa 1.5 points stemming mainly from a tough comparison basis, as the first quarter of FY 2020-21 which included a positive one-off of around €2 million, and to a lesser extent from lower revenues from Fransat. On a quarter-on-quarter basis, revenues were down by 1.7%.

Yet more optimistically, Eutelsat said on the commercial front in the quarter it had experienced some signs of a return to normality, notably in Europe with a multi-year agreement signed with the Polish national commercial broadcaster, TVN, for an additional transponder at the HOTBIRD neighbourhood and a contract with Zeonbud, Ukraine’s nation-wide DTT operator for capacity at the 9°East orbital position.

Moreover, in a deal that it said reflected the “unparalleled” coverage of Eutelsat’s in-orbit assets over the MENA region it had agreed partial renewal terms with Nilesat, Egypt’s premier satellite operator, for Ku capacity at Eutelsat’s 7° West position, part of the 7/8° West video hotspot, for broadcast services across the Middle East.

The multi-year, multi-transponder agreement represents the partial renewal of capacity by Nilesat at enhanced terms. Eutelsat said that the 7/8° West video hotspot represented the most powerful, widespread and dense footprint in the Middle East and North Africa, reaching 90% of TV homes in the region. The neighbourhood boasts over 60 million homes and 1,000 channels.