The quality of this year’s
results underscores the strength
of our business model.
The growth and continuity that characterise the performance of our Group in the 2008-2009 financial year are all the more relevant in the current economic downturn.
Eutelsat has achieved remarkable growth this year. It bears witness both to the success of our in-orbit expansion programme and to strong sales performance that has enabled us to extract value from additional resources serving markets with proven and solid dynamic. With increased business across all our activities, we have exceeded our objectives in all the regions around the world where we are present.
From year to year, Eutelsat has strengthened the quality of our infrastructure business model, which is centred on digital broadcast and broadband markets. It is a model based on a combination of high capital intensity and exceptional visibility on revenues through contracts which are requently signed for the operational life of our satellites. The consequence of these features is that they have flattened out the impact of the current economic environment on our business.
We can be confident for the short term, and have every reason to be so for the long term. The growth of our business will be buoyed by the rapid expansion of digital television and communications. Throughout the world, satellites are an indispensable source of bandwidth in these markets for serving large audiences on a Direct-to- Home basis, as well as for feeding and interconnecting terrestrial networks, and complementing their reach.
Eutelsat's balance sheet as of 30 June 2009 is particularly robust, with revenues increasing by 7.2% to €940 million. Our 78.9% EBITDA margin remained among the highest of leading satellite operators and our Group share of net income increased by 43.6%, to €247 million. Operating cash flow rose by 15.6%, allowing us to entirely self-finance our in-orbit expansion programme for the period 2008 to 2011, to maintain net debt within 3 to 4 times EBITDA and to distribute an attractive remuneration of 0.66 euros per share to our shareholders. This corresponds to almost 59% of Group share of net income.
A smooth transitionto ensure
continuing success.
In order to accompany growth on the long term, I am delighted that Michel de Rosen has joined our Group as a Member of the Board and Chief Executive Officer. A smooth transition is now underway to ensure continued success for Eutelsat. After a remarkable career at the head of international corporations, Michel de Rosen assumed the management of our Group following the General Shareholders’ Meeting on 10 November 2009, bringing with him his energy, enthusiasm and talent as a leader. As Chairman of the Board, my objective is to ensure strong, vigilant governance that fully plays its role in terms of analysis, control and strategic directions, in a climate of mutual trust.
Over three decades, Eutelsat has built a model that has firmly stood the test of time. By developing its reactivity and its capacity for anticipation, our Group has further consolidated the values it has inherited, evolving into one of the most significant success stories in European industry. It has been able to attract and unify teams who have earned a worldwide reputation for technical excellence and innovation.
We are as proud of this reputation as we are of our results. It sits at the core of the confidence that our customers and shareholders have in us which enables us to build our long-term strategy.
>Read Michel de Rosen