The strong development of digital broadcasting markets
shows once again the validity
of Eutelsat’s strategy to allocate
significant in orbit resources to video applications.
Leveraging the ability of satellites to address large audiences at costs far lower than terrestrial platforms, video applications give the Group a high level of profitability and excellent visibility for its long term revenues. On 30 June 2009, the share of video applications in the company’s turnover stood at 73.3%. Their weight in the backlog was 92%, with an average residual contract duration close to eight years.
GROWTH DRIVEN BY AVAILABILITY OF NEW RESOURCES IN THE SECOND HALF OF THE YEAREutelsat has recorded a new year of growth of its video applications with revenues of 679.7 M€. This represents 4.7% growth, which is all the more remarkable as new in-orbit resources dedicated to this business only went into operation with the entry into commercial service of the HOT BIRD™ 9 satellite in the third quarter and ATLANTIC BIRD™ 4A in the fourth quarter. Thanks to a cascade effect, these satellites have facilitated the relocation of HOT BIRD™ 7A (renamed EUROBIRD™ 9A) at 9° East and ATLANTIC BIRD™ 4 (renamed EUROBIRD™ 16) at 16° East. While securing Eutelsat’s flagship HOT BIRD™ position for television broadcasting, these orbital operations have also enabled the company to significantly increase resources for Central Europe, the western part of Russia, the Middle East and North Africa, in order to capitalise on rapid growth in these markets. 2009-2010 will benefit from the full year effect of these new resources, reinforced by the launch in November of the W7 satellite, which will double the Group’s broadcasting capacity in Russia and Sub-Saharan Africa.
Services combining profitability
and long-term visibility.
The number of homes worldwide equipped for satellite TV reception is constantly growing, and Eutelsat has benefited from strong presence in the most dynamic markets. With growth of 10% over the past two years, the audience of homes receiving television from a Eutelsat satellite has gone from 173 to 190 million homes. The HOT BIRD™ position, covering 45 countries in Europe, the Middle East and North Africa, has consolidated its leadership with 123 million homes receiving either Direct-to-Home or via a terrestrial network.
The 16° East and 36° East neighbourhoods have benefited from the spectacular growth of Direct-to-Home reception in Central and Eastern Europe, which has seen the number of satellite homes progress from 11 to 18 million in two years. Their respective audiences stand at 11 and 12 million homes. In the Middle East and North Africa, the rapid expansion of satellite reception has taken the audience at 7° West to over 24 million homes, in a joint operation with Nilesat, the Egyptian national operator. The W3A satellite at 7° East, covering Turkey, has topped the six million home mark, growing by 104% between 2006 and 2008.
ALMOST 3200 CHANNELS ON EUTELSAT SATELLITESOn 30 June 2009, the total number of channels carried by Eutelsat's fleet was 3 191. Underscoring a development driven by pay-TV in all the Group’s markets, the spread between free-to-air and pay services stood respectively at 39% and 61%, compared to 42% and 58% in June 2008. As a consequence of additional resources, the Middle East, Russian and African markets now represent 54% of the total number of channels carried by the fleet.
This geographic balance between Europe and the rest of the world consolidates Eutelsat’s business model by anchoring activity across a wide range of distinct markets. Growing by 76% over the year, High Definition channels have gone from 49 to 86 in Eutelsat’s fleet. In terms of satellite capacity, this represents the equivalent of 100 new Standard Definition channels.
