SHAREHOLDER INFO :: BECOME A SHAREHOLDER
WHY INVEST IN EUTELSAT COMMUNICATIONS?
To be a partner of one of the world's leading satellite operators
Eutelsat Communications is Europe's leading satellite operator and one of the top three global providers of Fixed Satellite Services (FSS). Operating a fleet of 26 satellites covering two thirds of the world, Eutelsat Communications generates 80% of its business from digital broadcasting and broadband markets. Via our HOT BIRD™ satellites at 13° East, Eutelsat manages the leading video neighbourhood for channel broadcasting, with over 1,100 channels and interactive services.
The Group's operational and financial performance highlights the exceptional attraction of our satellite neighbourhoods and our ability to capitalise on digital broadcasting and broadband services, the two most dynamic activities in the Fixed Satellite Services sector.
To join a long-term profitable growth strategy
Created in 1977, Eutelsat has built a privileged competitive position thanks to a high quality client base and key market shares both in Western Europe and in emerging markets. Since our IPO in 2005, the Group has pursued a strategy focused on enhancing in-orbit resources for video applications and developing a pole of value-added services.
Eutelsat Communications is the reference provider of Fixed Satellite Services, and will remain so for the years to come. With continual investment to maintain the fleet at its highest level, the Group will always have the best satellites to serve the markets with the highest potential. This strategic direction is founded on the prospect of long-term growth in digital broadcasting and broadband markets.
To invest in a highly profitable business model, that is sustainable and has strong visibility
73% of Eutelsat Communications revenues are generated by video applications with long-term contracts. Visibility on revenues is strong: the backlog represents over 4 times annual revenues, with the average residual duration of leases exceeding eight years. Many contracts are signed for the satellite’s lifetime, generally a period of 15 years. The Group’s EBITDA margin of 78.9% is maintained as the highest of leading satellite operators, reflecting excellent commercial performance and strict cost control.
Based on the regularity of our performance, which demonstrates the effectiveness of the business model and the quality of strategic vision, Eutelsat Communications has clear objectives: average annual growth of 7% for the next 3 fiscal years, with an EBITDA margin exceeding at least 77% of revenues.
To take advantage of promising new sources of growth
The growth potential of Fixed Satellite Services is huge. According to Euroconsult, the global number of channels broadcast via satellite should double before 2016, to reach 34,000, and the Group has other new sources of growth:
> of the 34,000 channels predicted by 2016 in the Euroconsult study, high definition (HDTV) will represent 20% of this digital offer, with nearly 7,000 HD channels worldwide. HDTV channels are developing progressively. At the end of June 2009, Eutelsat Communications was broadcasting 86 HD channels, up from 49 a year ago;
> consumer broadband market: Eutelsat's Tooway solution is designed to bring consumer satellite broadband services in line with ADSL in terms of cost and speed. This unique technological solution for regions not served by terrestrial broadband networks has already established itself in a market with strong potential, which is predicted to involve more than 15 million households across Europe and the Mediterranean Basin in 2010. It will also provide new opportunities for local and regional television markets. The objective of this new infrastructure is to generate average annual revenues of around 100 million euros beyond the 2011-2012 fiscal year.
To enjoy an attractive remuneration
The Group’s sound financial structure, high-quality performance and visibility on its future, not only enables us to lead a significant investment programme that supports long-term growth, but also to offer an attractive remuneration policy to our shareholders.
Our policy is to pay a dividend representing between 50% and 75% of net income Group share over the 2007-2010 period. The dividend paid for the 2008-2009 fiscal year amounted to €0.66 per share, up 10% compared to the previous fiscal year.
