Eutelsat

With capacity commercialized on 27 satellites, Eutelsat is firmly established as one of the three leading satellite operators worldwide in terms of capacity, coverage and revenues. In fiscal year 2008-2009, the company generated over 940 million euros turnover and an EBITDA margin of 78.9 per cent, the highest in the satellite sector. Prospects for FY 2009-20010, backed by positive results for the first quarter of the year, are equally promising, with an expected turnover in excess of 1 billion euros.

The company's commercial success rests on the combination of a modern, reliable and flexible satellite fleet, strategically placed orbital locations covering some of the most dynamic markets in the world, a comprehensive and innovative portfolio of solutions, more than 25 years of operational experience and a highly professional, multinational staff.

Eutelsat's fleet is one of the youngest in the commercial satellite sector. The company launched three new satellites during the second half of FY 2008-2009, and a fourth one in the first quarter of the current fiscal year (W7). Four additional satellites will be launched in 2010 and 2011, two in the "W" series, one in the ATLANTIC BIRD series while the fourth, KA-SAT, will operate exclusively in Ka-band.

Video applications: Eutelsat's core market

Eutelsat is a major actor in satellite video applications, which represent almost three-quarters of its total revenue and over 3,300 TV channels broadcast at 30 September 2009. The HOT BIRD^TM position at 13 degrees East, with its 1,100+ TV channels, is one of the most successful video neigbourhoods in the world. In combination with the EUROBIRD^TM 1 satellite, it serves mainly the European Union countries, but also North Africa and the Near East, and is home to blue-chip pay-TV platforms such as Sky Italia, BSkyB, Cyfra + and Polsat (Poland), Telesat (Belgium) or Nova (Greece).

Eutelsat has also pursued its strategy aimed at developing major new video positions (at 5 and 7 degrees West, and 7, 9, 16, 25.5 and 36 degrees East) for central and eastern Europe, Russia, the Middle East, North Africa, Sub-Saharan Africa and the Indian Ocean.

Meanwhile and in just over two years, Eutelsat's new broadcasting neighbourhood over Europe, 9 degrees East, has brought together more than 200 channels, several pay-TV platforms and [16] HDTV channels, making this orbital position into a remarkable success story.

The take-up of High Definition Television (HDTV) continued to meet and exceed the company's expectations. 30 September 2009 was marked by the launch of the 100^th HDTV channel on Eutelsat, and additional channels have begun broadcasting since. With 40% of the HD channels in Europe, Russia and the Middle East broadcast via its satellites, Eutelsat has strengthened its leadership in this growth segment.

Data and value-added services

Eutelsat's second largest market is data and value-added services, which account for almost 18 per cent of revenues.

During FY 2008-2009, Data Services registered double-digit growth, confirming sustained demand from fixed and mobile telecommunication and Internet markets, in particular in Africa, Central Asia and the Middle East. Satellite remains in these markets the most cost-effective solution for feeding or interconnecting local networks spread over large territories.

The performance of Data Services also reflects the entry into service in the spring of 2009 of the Ku-band and C-band payloads on the W2A satellite which offers privileged coverage for interconnectivity between Europe, Africa, South and Central Asia and South America. These resources enabled Eutelsat to activate a number of new contracts with major clients. The successful launch of W7 in November 2009 offers significant potential for data and voice solutions using small ground terminals, in particular for the oil and gas sector in Russia, Central Asia and West Africa.

Value-added services registered a growth of 11.9 per cent over FY 2007-2008, mainly driven by increased demand for direct Internet access from companies and communities. By end-September 2009, there were more than 10,000 installed D-STAR terminals, with Africa and the Middle East representing the main areas of expansion. The D-STAR solution was recently chosen to provide Internet connections for almost 500 rural schools in Morocco.
Eutelsat also continued to develop the distribution network of the TOOWAY^TM consumer broadband service. A number of distribution contracts were signed during FY 2008-2009 and in the first quarter of the current fiscal year, in particular with Telecom Italia and Fastweb in Italy, "3" in Ireland, El Corte Inglès in Spain and Hellas On Line in Greece.

Multi-usage leases

Representing just over 9 per cent of Eutelsat revenues, this segment benefited from the introduction in June 2009 of the EUROBIRD^TM 4A satellite (re-deployment of the W1 satellite to 4 degrees East), with the activation of new governmental contracts in Central Asia and the Middle East.

Innovation and in-orbit infrastructure

The availability next year of the KA-SAT spacecraft will be the cornerstone of a major new satellite and ground infrastructure that will significantly expand capacity and accessibility for consumer broadband services across Europe and the Mediterranean Basin, while also providing new opportunities for local and regional TV markets. KA-SAT will be able to deliver broadband services comparable to ADSL to more than one million households. Equipped with more than 80 spotbeams, each covering a region spanning approximately 250 kilometres, its innovative design which employs extensive frequency re-use by groups of beams covering distinct regions, will afford record levels of operational efficiency and capacity by a single satellite. KA-SAT will be positioned at 13 degrees East where it will join the HOT BIRD ^TM satellites. This co-location at Eutelsat's flagship neighbourhood will allow the company's customers to enrich service by offering consumers equipped with dual-frequency antennas the opportunity to receive TV channels in the Ku-band and triple play services in the Ka-band.

Satellite in-orbit control and operations

Eutelsat operates two teleports, one in France near Rambouillet and one in Turin, Italy, and offers a complete range of in-orbit operating services, ranging from post-launch manoeuvres to de-orbiting.

The Eutelsat teleports are also used for broadcasting and broadband ground services, including the operation of value-added services.