Satellite operator Eutelsat reported poor first quarter results with revenues down by 2.7% to €335.1 million, and was forced to revise its full-year revenue forecast.
Eutelsat core video business has been affected after a key US government contract renewal was not secured. The DTH business accounts for nearly two thirds of its overall revenue, at €217.2 million. The satellite operator reported that the number of channels of the platform stood at 6,999, with the number of HD channels standing at 1.419, up 17% over last year, despite the first quarter dip in earnings.
Eutelsat said deals with telco operators using their satellite to extend the reach of IPTV services represents a key growth opportunity.
Speaking to the media after the earnings report was published, CEO Rodolphe Belmer commented that “the vast majority” of the company’s broadcast business was stable. He added that Eutelsat had a different geographic exposure and a greater emphasis on DTH contracts than other players in the market.
Belmer said the 28° West orbital slot serving the UK market was “doing very well” and that growth could be expected for the 7-8° West orbital slot serving the Middle East and Africa. Belmer said that he expected the DTH video business would stabilise and grow slightly, despite overall industry slowdown. He added that Eutelsat had more contract with telcos in the pipeline that it expected to close in the coming weeks.