Eutelsat Communications SA · EURONEXT:ETL
Eutelsat Communications SA — Q1 2018-19 Earnings Presentation
24 slides from Eutelsat Communications SA's earnings presentation, Oct 30, 2018
Slide 1: First Quarter 2018-19 Revenues
FIRST QUARTER 2018-19 REVENUES 30 October 2018
Slide 2: Agenda
Agenda 1 Key Events 2 Q1 2018-19 Performance 3 Outlook 2
Slide 3: Key Events
Key Events Disposal of non-core interest in ETL 25B satellite for €135m Refinancing of Jan 2019 Bond, extending debt maturity and reducing cash interest by €24m Launch of EUTELSAT CIRRUS hybrid satellite-OTT turnkey solution Progressive roll out of Konnect Africa broadband service Member of C-Band A
Slide 4: Q1 Revenues
Q1 Revenues Q1 YOY REVENUE BRIDGE (€M) ► First Quarter revenues of €335m ► Revenues down 2.7% at -1.8% constant perimeter, currency +1 and accounting standards (4) • Consolidation of Noorsat (5) • Deconsolidation of Eutelsat 25B (6) • Adoption of IFRS 15 349 ► Operating verticals down 1.8% 335 exclu
Slide 5: Agenda
Agenda 1 Key Events 2 Q1 2018-19 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% 217 -1.7% -0.7% Government 13% 10% 42 +4.2% +1.4% Services Fixed Data 10% 33 -12.1% -5.7% CONNECTIVITY Fixed 6% 20 -7.3% -2.7% Broadband Mobile 6% 21 +10.9% +1.9% Conn
Slide 7: Video
Video REVENUES (€M) ► Revenues of €217m, down 1.7% y-o-y like-for-like1 • High-single digit decline in Professional Video • Lower revenues from FRANSAT 871 ► Core Broadcast excluding FRANSAT Q4 stable… 216 ► …and set to improve in coming Q3 218 quarters with • Contract with Orange Slovensko Q2 219 •
Slide 8: Focus on HOTBIRD KPIs
Focus on HOTBIRD KPIs 1,002 -4 998 Stable -43 channel count June 2018 Sept. 2018 329 +4% 341 Sustained HD ramp-up, outpacing MPEG4 Penetration 33% 34% June 2018 Sept. 2018 574 +1% 578 MPEG-4 more advanced than HD Penetration 57% 58% June 2018 Sept. 2018 88
Slide 9: Government Services
Government Services REVENUES (€M) ► Revenues of €42m, up 4.2% y-o-y like-for-like1 • Incremental business at 174°East 158 ► USG renewal rate of c.70% in Fall Q4 40 round • Non-renewal of a single sizeable Q3 38 contract with a specific service provider Q2 39 • Not reflective of underlying market tre
Slide 10: Fixed Data
Fixed Data REVENUES (€M) ► Revenues of €33m, down 12.1% y-o-y like-for-like1 143 ► Highly competitive environment Q4 34 ► Ongoing price pressure Q3 35 ► Latin America the main contributor to revenue decline Q2 36 Q1 37 Q1 33 2 FY 2017-18 FY 2018-19 1 At constant currency, perimeter and accounting st
Slide 11: Fixed Broadband
Fixed Broadband REVENUES (€M) ► Revenues of €20m, down 7.3% y-o-y like-for-like1 ► Contract expiry for one spotbeam on ETL 3B • Re-contracted to Taqnia in Mobile 84 Connectivity Q4 21 ► Lower revenues for European Broadband Q3 21 • Scarcity of available capacity in Western Europe Q2 21 ► Progressive
Slide 12: Mobile Connectivity
Mobile Connectivity REVENUES (€M) ► Revenues of €21m, up 10.9% y-o-y like-for-like1 ► YoY variation reflecting: 74 • New contract with Taqnia at 3°East and 70°East 20 Q4 • Carry-over effect of entry into service of EUTELSAT 172B Q3 18 • Ongoing ramp up of capacity contracts on KA-SAT Q2 19 ► H2 reve
Slide 13: Backlog and Fill Rate
Backlog and Fill Rate BACKLOG (€BN) OPERATIONAL AND LEASED TRANSPONDERS 1374 1427 1416 5.2 4.6 4.7 971 976 940 % 86% 83% 77% Video 30 September 30 June 2018 30 September 30 Sept. 2017 30 June 2018 30 Sept. 2018 2017 2018 Fill rate 68.4% 68.1% 69.0% Operational transponders leased transponders ► 3.4
Slide 14: Agenda
Agenda 1 Key Events 2 Q1 2018-19 performance 3 Outlook 14
Slide 15: Update on our key priorities for FY 2018-19
Update on our key priorities for FY 2018-19 Deliver full benefits of LEAP On track to deliver on €30m target Secure further interest cost €24m savings in FY 20 secured thanks savings to successful Bond issue Maximise cash HOTBIRD constellation replacement at Achieve further capex compelling terms ge
Slide 16: Robust asset disposal program
Robust asset disposal program H2 2016 H1 2017 H1 2018 H2 2018 H1 17 H2 17 H2 18 H1 19 49% of 34% stake in Interest Wins/DHI European Hispasat in Eutelsat Broadband 25B €60m €132m €302m €135m Over €600m of asset disposals in two years 16
Slide 17: Launch of Eutelsat CIRRUS…
Launch of Eutelsat CIRRUS… ► State-of-the art, cloud-based Turnkey TV distribution service technology ► Turnkey end-to-end video distribution ► Seamless multi-screen end-user experience enabling combined DTH/OTT offers ► Modular, evolving feature-set • Subscriber management and Multi-screen via clou
Slide 18: …benefiting both Eutelsat and its customers
…benefiting both Eutelsat and its customers MAIN BENEFITS TO OUR CUSTOMERS MAIN BENEFITS TO EUTELSAT ► Simplified delivery logistics ► Improved customer knowledge ► Mutualized cost ► Increased customer loyalty ► Off-the-shelf solutions ► Seize new revenue opportunities • New platforms or projects to
Slide 19: Progressive launch of Konnect Africa
Progressive launch of Konnect Africa ► Entry into service of Al-Yah 3 capacity at the end of Q1 ► Progressive launch of commercial service ► Konnect Africa now available in eight countries ► Strong interest both from traditional Telecom-related service providers and capillary local partners ► Gradua
Slide 20: Financial outlook
Financial outlook OPERATING VERTICALS REVENUES ► Broadly stable in FY 2018-191 (At constant currency, perimeter and ► Return to slight growth from FY 2019-20 accounting standards) EBITDA MARGIN ► Above 78% from FY 2018-19 (At constant currency) Taking into account impact of IFRS 15/16 standards ► FY
Slide 21: To Sum Up
To Sum Up Global performance of the operating verticals in line with expectations at this stage in the year Core Broadcast revenues stable Concrete measures to maximize cash generation Connectivity strategy progressing Current year topline objective adjusted to take account of one-off contract loss
Slide 22: Appendix
APPENDIX
Slide 23: Future launches
Future launches EUTELSAT EUTELSAT KONNECT EUTELSAT EUTELSAT Name 7C 5 WEST B KONNECT VHTS HOTBIRD HOTBIRD 13F 13G Orbital 7° East 5° West TBD TBD TBD 13° East 13° East Position Launch date1 Q1 2019 Q1 2019 H2 2019 H2 2019 2021 2021 2021 Manufacturer Launcher TBD TBD TBD MENA Europe Flexible SSA Euro
Slide 24: 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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