- Operating vertical revenues down -4.2% like-for-like; full
year revenues now expected in the lower half of the guidance
range
- Robust profitability with 76.1% EBITDA margin
- Further high level of Free Cash-Flow generation
- Delayed availability of growth assets leading to mechanical
revision of medium-term revenue objectives
- Discretionary Free-Cash-Flow objectives and dividend policy
confirmed
- Return to growth expected in FY 2023-24
Regulatory News:
The Board of Directors of Eutelsat Communications (ISIN:
FR0010221234 / Euronext Paris: ETL), chaired by Dominique D’Hinnin,
reviewed the financial results for the Half Year ended 31 December
2021.
Key Financial Data
6M to Dec. 2020
6M to Dec. 2021
Change
P&L
Revenues - €m
628.5
572.2
-9.0%
“Operating Verticals” revenues reported -
€m
613.1
568.7
-7.2%
“Operating Verticals” revenues at
constant currency and perimeter - €m
588.1
563.3
-4.2%
EBITDA1 - €m
484.1
435.7
-10.0%
EBITDA margin - %1
77.0
76.1
-0.9 pts
EBITDA margin at constant currency - %
77.0
76.4
-0.6 pts
Group share of net income - €m
137.4
166.0
+20.8%
Financial structure
Reported Discretionary Free Cash-Flow -
€m1
256.9
195.0
-24.1%
Adjusted Discretionary Free Cash-Flow -
€m1
265.9
203.4
-23.5%
Net debt - €m
2,994.4
3,081.0
+€86.6m
Net debt/EBITDA1
3.09x
3.53x
+0.44 pts
Backlog – €bn
4.4
4.2
-4.9%
Commenting on the First Half, Eva Berneke Chief Executive
Officer of Eutelsat Communications, said: “This has been a
satisfactory First Half in financial terms, with strong free cash
flow generation and a further industry leading EBITDA margin,
despite the decline in revenues, testifying to our fundamentally
robust business model and stringent financial discipline. The First
Half has seen a number of important commercial and operational
milestones, notably with the entry into service of EUTELSAT
QUANTUM, strong progress on our Fixed Broadband roll-out, the
cementing of our position in OneWeb and the receipt of the first
tranche of our C Band proceeds. Newly at the helm, I am impressed
by the technical expertise, asset quality and long-term commercial
traction within Eutelsat. Although we have mechanically revised
down our medium-term revenue expectations on the back of delayed
availability of capacity, I am confident we have the elements in
place to enable us to return to growth from FY 2023-24 and continue
to deliver long-term value to our shareholders.”
Notes: This press release contains figures from the consolidated
half-year accounts prepared under IFRS and subject to a limited
review by the Auditors. They were reviewed by the Audit Committee
on 15 February 2022 and approved by the Board of Directors on 16
February 2022. EBITDA, EBITDA margin, Net debt / EBITDA ratio, Cash
Capex, Discretionary Free Cash-Flow and Adjusted Discretionary Free
Cash-Flow are considered Alternative Performance Indicators. Their
definition and calculation are in Appendix 3 of this document. The
comparative financial statements as of 31 December 2020 have been
restated with respect to the CVAE, which has been reclassified from
"Selling, general and administrative expenses" to "Corporate income
tax" for an amount of 2.1 million euros in order to align the
presentation with the consolidated financial statements as of 31
December 2021.
KEY EVENTS
- New Chief Executive Officer, Eva Berneke, took office on 1st
January 2022.
- First Half Operating Vertical revenues down 4.2% on a
like-for-like basis, broadly in line with expectations and within
the range of objectives for the Full Year.
- Industry-leading profitability with a 76.4% EBITDA margin in
the First Half at constant currency, despite revenue decline.
- Adjusted Discretionary Free Cash-Flow of €203m, well on track
to reach full year objective.
- $125m proceeds related to Phase I of C-Band transition received
in December.
- Sustained progress in our Fixed Broadband strategy
- Following recent contracts with Hispasat (Spain) and Deutsche
Telekom (Germany), four of the five most populous European markets
are now covered by wholesale or distribution deals with major
operators, including France (Orange) and Italy (TIM);
- Growing momentum in Africa, evidenced by agreements with
Telecom operators Globacom in Nigeria and Vodacom in Tanzania, and
with the service provider Intersat for Gambia and Guinea
Bissau.
- Successful entry into service of EUTELSAT QUANTUM bringing
unprecedented flexibility to address government and mobility
markets with four beams out of eight at a well-advanced stage of
commercialization after a few months of operations
- Two beams already secured
- One beam with a customer in the Middle East for maritime
Mobility;
- One beam in government services with a USG service
provider.
- Well-advanced discussions for the commercialization of two
additional beams;
- Strong pipeline of opportunities with both USG and non-USG
customers.
- Investment in OneWeb closed making Eutelsat the number two
shareholder in one of the few global LEO constellations, a critical
infrastructure to serve long-term Telecom needs.
- Updated revenues objectives
- For FY 2021-22, revenues expected in our predicted range,
albeit in the lower half;
- For the medium-term, revenue objectives mechanically revised to
reflect delayed availability of KONNECT VHTS and EUTELSAT 10B;
- Return to topline growth expected in FY 2023-24 on the back of
incremental capacity.
- Adjusted DFCF objectives confirmed.
- Dividend policy (stable to progressive dividend)
confirmed.
ANALYSIS OF REVENUES2
In € millions
6 months to Dec. 2020
6 months to Dec. 2021
Change
Reported
Like-for-like3
Broadcast
378.9
350.5
-7.5%
-7.5%
Data & Professional Video
81.4
77.8
-4.4%
-4.1%
Government Services
76.9
73.9
-3.9%
-3.8%
Fixed Broadband
42.1
30.1
-28.5%
+37.3%
Mobile Connectivity
33.9
36.5
+7.7%
+9.8%
Total Operating
Verticals
613.1
568.7
-7.2%
-4.2%
Other Revenues4
15.4
3.5
-77.3%
NR
Total
628.5
572.2
-9.0%
-4.7%
EUR/USD exchange rate
1.17
1.17
Total revenues in the First Half stood at €572 million,
down 9.0% on a reported basis and by 4.7% like-for-like.
Revenues of the five Operating Verticals (ie, excluding ‘Other
Revenues’) stood at €569 million. They were down by 4.2% on a
like-for-like basis excluding a negative perimeter effect of circa
3 points from the disposal of Euro Broadband Infrastructure (EBI)
on 30 April 2021, only partly offset by the consolidation of Bigblu
Broadband Europe since 1st October 2020.
Second Quarter revenues stood at €285 million down 5.0%
like-for-like. Revenues of the five Operating Verticals stood at
€284 million, down 5.1% year-on-year and by 1.0% quarter-on-quarter
on a like-for-like basis.
Unless otherwise stated, all variations indicated below are on a
like-for-like basis, ie, at constant currency and perimeter.
Broadcast (62% of revenues)
First Half Broadcast revenues were down 7.5% to €351
million, reflecting mostly three items: lower revenues in Europe
due largely to the carry-forward effect of a slowdown in the pace
of new business last year, the temporary headwind of the partial
renewal of capacity with Nilesat at 7/8°West, and a negative impact
of circa one point reflecting a positive one-off booked in the
First Quarter of 2020-21 as well as lower revenues from
Fransat.
Second Quarter revenues stood at €173 million down by
8.6% year-on-year and 3.1% quarter-on-quarter.
The trend is expected to progressively improve as the comparison
basis becomes easier from the Second Half and the available
capacity at 7/8°West is gradually resold.
Data & Professional Video (14% of revenues)
First Half revenues stood at €78 million, down by 4.1%
year-on-year.
In Fixed Data (two thirds of this application), improved volume
trends are now offsetting most of the negative impact of
competitive pressure.
Professional Video (one third of revenues), recorded a
high-single digit decline on the back of the unfavourable phasing
of a specific contract as well as the ongoing structural headwinds
in this application.
Second Quarter revenues stood at €39 million, down 6.7%
year-on-year, but up by 1.4% quarter-on-quarter.
We expect the full year decline for this application to remain
broadly consistent with the trend of the First Half.
Government Services (13% of revenues)
First Half Government Services revenues stood at €74
million, down by 3.8%, reflecting the negative carry-forward effect
of USG renewals with, in particular, a 75% renewal rate in Fall
2021 as a result of the geopolitical context in MENA, partly offset
by new business.
Second Quarter revenues stood at €37 million, down by
5.9% year-on-year and by 2.0% quarter-on-quarter.
The Second Half will reflect the full effect of the
above-mentioned headwinds.
Fixed Broadband (5% of revenues)
First Half revenues stood at €30 million, up 37.3% on a
like-for-like basis. This reflected the contribution from the
wholesale agreements with Orange, TIM and, from November 2021,
Hispasat as well as, to a lesser extent the growth of our African
operations.
Second Quarter revenues stood at €16 million. On a
like-for-like basis, they were up 24.7% year-on-year, and 5.9%
quarter-on-quarter.
The First Half saw material progress in the roll-out of our
Fixed Broadband strategy with four of the five most populated
countries in Europe now covered by distribution or wholesale
agreements with major operators. A distribution agreement was
signed with Deutsche Telekom on the EUTELSAT KONNECT satellite for
the German coverage as well as a multi-year wholesale commitment
from Hispasat for the Iberian capacity on EUTELSAT KONNECT. Both
agreements could be extended to KONNECT VHTS in the future.
In Africa a multi-year, multi-Gbps wholesale capacity contract
was secured with Globacom, Nigeria’s second largest telecom
operator as well as a service agreement with Vodacom Tanzania, the
country’s leading telecommunications company. A contract was also
signed with Intersat for the entire capacity covering Gambia and
Guinea Bissau. In addition, several spotbeams on the HTS payload of
the EUTELSAT 65 West A satellite were selected by Mexican service
providers to address Internet connectivity needs under a
government-sponsored rural schools connectivity project.
These tailwinds will benefit the Second Half which will see a
continuation of significant double-digit organic growth.
Mobile Connectivity (6% of revenues)
First Half revenues stood at €37 million, up 9.8%
like-for-like, reflecting in particular the contribution of the
contract with Anuvu. Maritime mobility also continued to record a
sound performance driven by the ramp-up of contracts with service
providers signed in previous years and the above-mentioned
agreement on EUTELSAT QUANTUM.
Second Quarter revenues stood at €19 million, up 19.6%
year-on-year and by 11.0% quarter-on-quarter.
On the commercial front, the global partnership with Marlink has
been extended to Asia-Pacific and the Americas, including
incremental capacity commitments on multiple satellites across our
fleet. This comes on top of the agreement with a customer in the
Middle-East on EUTELSAT QUANTUM for maritime mobility.
This positive dynamic is expected to translate into double-digit
growth for the Full Year.
Other Revenues
In the First Half, Other Revenues amounted to €4 million
versus €15 million a year earlier. They included a €2 million
negative impact from hedging operations versus a positive effect of
€6 million a year earlier.
OPERATIONAL AND UTILIZED
TRANSPONDERS
The number of operational transponders at 31 December 2021 stood
at 1,380, broadly stable year-on-year and compared to end-June
2021, with no entry into service of any new regular capacity or end
of stable-orbit life of any satellite over the last 12 months.
The number of utilized transponders stood at 974, up by seven
units year-on-year and down by seven units compared to end June,
the latter reflecting notably the return of capacity by
Nilesat.
As a result, the fill rate stood at 70.6% compared to 70.1% a
year earlier and 71.2% at end-June.
31 Dec. 2020
30 June 2021
31 Dec. 2021
Operational transponders5
1,380
1,377
1,380
Utilized transponders6
967
981
974
Fill rate
70.1%
71.2%
70.6%
Note: Based on 36 MHz-equivalent transponders excluding
high throughput capacity, EUTELSAT QUANTUM and satellites in
inclined orbit.
BACKLOG
The backlog7 stood at €4.2 billion at 31 December 2021 versus
4.4 billion a year earlier and at end June 2021. The natural
erosion of the backlog in the First Half more than offset the
contribution of the partial renewal with Nilesat and the wholesale
contract with Hispasat.
The backlog was equivalent to 3.4 times 2020-21 revenues, and
Broadcast represented 64% of the total.
31 Dec. 2020
30 June 2021
31 Dec. 2021
Value of contracts (in billions of
euros)
4.4
4.4
4.2
In years of annual revenues based on
previous fiscal year
3.4
3.5
3.4
Share of Broadcast application
67%
64%
64%
PROFITABILITY
EBITDA stood at €436 million at 31 December 2021 compared
with €484 million a year earlier, down by 10.0%. The EBITDA
margin stood at 76.4% at constant currency (76.1% reported)
versus 77.0% a year earlier, reflecting lower revenues. Opex were
€8m lower than last fiscal year reflecting the favourable effect of
changes in perimeter, lower Bad Debt and continued strict cost
discipline in the legacy businesses. In the context of the LEAP 2
cost-saving program, €24 million savings have been fully secured
for current fiscal year, in the high end of the 20-25 million
annual savings target range.
Group share of net income stood at €166 million versus
€137 million a year earlier, up by 20.8% and representing a margin
of 29%. This reflected:
- Lower depreciation and amortisation ((€243) million at
31 December 2021 compared with (€260) million a year earlier) as a
result in particular of the disposal of the KA-SAT satellite and of
the end of the amortization period of certain in-orbit assets.
- Other operating income of €84m (compared to expenses of
€8 million last year) including the $125m payment related to Phase
I of C-Band proceeds, partly offset by some asset impairments.
- A net financial result of (€35) million (versus (€47)
million a year earlier), reflecting a favourable evolution of
foreign exchange gains and losses.
- A tax rate of 24% (versus 15% last year) reflecting the
30% tax rate applied to the C-Band proceeds.
- Negative income from associates ((€13) million)
reflecting the contribution of the stake in OneWeb since
September.
CASH FLOW
In H1 2021-22, net cash flow from operating activities
amounted to €363 million, €72 million lower than a year earlier due
principally to the decline in EBITDA.
Cash Capex amounted to €98 million (versus €117 million
last year); it reflects the phasing of satellite program milestones
and is not representative of the expected Full Year figure.
Interest and other fees paid net of interest received
amounted to €70 million versus €61 million last year. All the
coupon payments related to our bond issuances now fall due in the
First Half (four maturities representing a nominal amount of
€2.3bn) whereas in FY 21, a coupon on a €500 million issue fell due
in the Second Half.
Discretionary Free Cash-Flow amounted to €195 million on
a reported basis, down €62 million. Adjusted Discretionary Free
Cash-Flow as per the financial outlook definition8 stood at €203
million, down €62 million or 23.5%.
FINANCIAL STRUCTURE
At 31 December 2021, net debt stood at €3,081 million, up
€426 million versus end-June. It mainly reflected, on one hand,
€195 million in Discretionary Free Cash-Flow generated in the First
Half and C-Band proceeds of $125 million, and on the other, the
dividend payment of €222 million (including minority interests) and
the outflow in respect of inorganic investments of €495m, mostly
OneWeb. Other items (mostly variations related to leases,
structured debt and the foreign exchange portion of the
cross-currency swap) contributed to the increase in net debt for a
net impact of €14 million.
The net debt to EBITDA ratio stood at 3.53 times,
compared to 3.09 times at end-December 2020 and 2.88 times at
end-June 2021. As a reminder, December represents a peak in the
annual leverage profile reflecting the timing of the dividend
payment. The picture is exacerbated this year by the timing of the
investment in OneWeb whereas only a quarter of C-Band proceeds have
been received.
The average cost of debt after hedging stood at 2.5% (2.3% in H1
2020-21). The weighted average maturity of the Group’s debt stood
at 4.5 years, compared to 4.3 years at end-December 2020.
Liquidity remained strong, with undrawn credit lines and cash
around €1.5 billion.
DIVIDEND
The Annual General Meeting of Shareholders of 4 November 2021
approved the payment of a dividend of €0.93 per share in respect of
the Financial Year ended 30 June 2021. The dividend was paid on
November 18, 2021.
INVESTMENT IN ONEWEB
On 8 September 2021, Eutelsat completed its initial investment
in OneWeb of 550 million U.S. dollars announced in April. On 6
October, a call option on a portion of the latest OneWeb funding
round subscribed by Bharti was exercised for a consideration of 165
million9 U.S. dollars.
As a result, Eutelsat now owns 22.9% of OneWeb10.
FLEET DEPLOYMENT
Nominal deployment programme
Compared to the last quarterly update in October 2021, the entry
into service of KONNECT VHTS has been delayed from the first half
to the second half of calendar 2023. Furthermore, while still
expected within the H1 2023 window, the entry into service of the
EUTELSAT 10B satellite has been delayed versus our previous
expectations. This reflects the impact of both manufacturing delays
and their knock-on effects, including pairing difficulties, related
to launch rescheduling, in the context of global Covid crisis.
All other data remains unchanged.
Satellite
Orbital
position
Estimated entry into service
(calendar year)
Main
applications
Main geographic
coverage
Physical Transponders/
Spot beams
Of which expansion
EUTELSAT 10B
10° East
H1 2023
Mobile Connectivity
EMEA Atlantic & Indian
Ocean
12 Ku 10 C >100 Ku spot
beams
-48 Ku c. 35 Gbps
EUTELSAT HOTBIRD 13G
13° East
H1 2023
Broadcast
Europe MENA
80 Ku2 EGNOS payload
EGNOS payload
KONNECT VHTS
To be
confirmed
H2 2023
Connectivity
Europe
~230 Ka spot beams
500 Gbps
EUTELSAT HOTBIRD 13F
13° East
Q2/Q3 2023
Broadcast
Europe MENA
80 Ku2
None
EUTELSAT 36D
36° East
H2 2024
Broadcast Government
Africa, Russia, Europe
70 Ku UHF payload
UHF payload
1 Nominal capacity corresponding to the
specifications of the satellites. Total operational capacity at the
HOTBIRD orbital position will remain unchanged with 102 physical
transponders operated, once regulatory, technical and operational
constraints are taken into account.
Changes in the fleet since 30 June 2021
- EUTELSAT QUANTUM was launched on 30 July 2021 and entered
service in November 2021.
- The lease agreement for capacity on the YAHSAT 1B and Al Yah 3
satellites was terminated in the first quarter of fiscal year
2021-22.
- EUTELSAT 48E, which was in inclined orbit, terminated its life
in October 2021.
- EUTELSAT 174A is operating in inclined orbit since January
2022.
FINANCIAL OUTLOOK
First Half revenues were broadly in line with expectations,
albeit at the lower end of our guidance range for FY 2021-22. The
geopolitical situation in the Middle East has resulted in a
headwind for Government Services which already partly materialized
in the Fall 2021 renewal campaign with the US Department of
Defence, and is also expected to impact the Spring 2022 campaign.
Elsewhere, although the available resources are drawing strong
commercial interest, the resale of capacity at 7/8°West is taking
slightly longer than expected to materialize and will therefore
contribute lower than expected to revenues in FY 2021-22. As a
result, we now expect an outturn in the lower half of our Operating
Verticals Revenue guidance range for the Full Year of €1,110 to
€1,150 million11 and are reducing the top end of this range to
€1,130 million.
Elsewhere, the delay in the availability of both KONNECT VHTS
and EUTELSAT 10B has a mechanical effect on our expectations for
subsequent years.
As a result, return to topline growth in FY 2022-23 is no longer
achievable, although the trend will materially improve relative to
FY 2021-22.
Revenues are now expected to return to growth in FY 2023-24 on
the back of incremental capacity.
All other objectives are confirmed as follows:
- Cash Capex12 not exceeding €400 million per annum for each of
the next three fiscal years (FY 2021-22 / FY 2022-23 / FY
2023-24).
- Adjusted Discretionary Free Cash Flow of between €400 million
and €430 million in FY 2021-22 at a €/$ rate of 1.20. Adjusted
Discretionary Free Cash Flow is expected to grow in FY 2022-23 and
in FY 2023-24.
- The LEAP 2 plan aimed at generating €20-25 million in annual
savings by FY 2021-22.
- Commitment to a sound financial structure to support our
solicited investment grade credit ratings targeting a medium-term
net debt / EBITDA ratio of around 3x.
The dividend policy of a stable to progressive dividend is also
reiterated.
This outlook is based on the revised nominal deployment plan
outlined above.
CORPORATE GOVERNANCE
Appointment of Eva Berneke as Chief Executive Officer
The Board of Directors appointed Eva Berneke as Chief Executive
Officer, with effect from 1st January 2022. Eva Berneke was also
co-opted as a member of the Board. She replaced Rodolphe Belmer
whose office terminated on 31 December 2021.
Annual General Meeting
The Ordinary and Extraordinary Shareholders’ Meeting of 4
November 2021 renewed the mandates of Esther Gaide, Dominique
D’Hinnin and Didier Leroy. BPIFrance Investissement was appointed
as a Board Member and is represented by Paul François Fournier.
The Board is composed of 10 members, 50% of whom are women and
70% of whom are independent.
The Combined General Meeting also approved all the other
resolutions, including the accounts, the dividend in respect of FY
2020-21, compensation of corporate officers and compensation
policy.
*******
Results presentation
Eutelsat Communications will present its results on Thursday,
February 17th, 2022 by conference call and webcast at 9:00
CET.
To join the call, please dial the following numbers:
- + 33 (0)1 70 72 25 50 (from France)
- + 44 (0)330 336 9125 (from Europe)
- +1 720 543 0214 (from USA) Access code: 7259725#
A live webcast will be available here.
A replay will be available from 17 February, 13:00 CET to 24
February, 13:00 CET by dialling the following numbers:
- + 33 (0) 1 70 48 00 94 (from France)
- + 44 (0) 203 859 5407 (from Europe)
- +1 719 457 0820 (from USA) Access code: 7259725#
Documentation
Consolidated accounts are available at:
https://www.eutelsat.com/en/investors/financial-information.html.
Financial calendar
The financial calendar below is provided for information
purposes only. It is subject to change and will be regularly
updated.
- 12 May 2022: Third Quarter 2021-22 revenues
- 3 August 2022: Full Year 2021-22 results
About Eutelsat Communications
Founded in 1977, Eutelsat Communications is one of the world's
leading satellite operators. With a global fleet of satellites and
associated ground infrastructure, Eutelsat enables clients across
Video, Data, Government, Fixed and Mobile Broadband markets to
communicate effectively to their customers, irrespective of their
location. Around 7,000 television channels operated by leading
media groups are broadcast by Eutelsat to one billion viewers
equipped for DTH reception or connected to terrestrial networks.
Committed to promoting all facets of sustainable development across
its business activities, Eutelsat leverages its in-orbit resources
to help bridge the digital divide while maintaining a safe and
uncluttered space environment. As an attractive and socially
responsible employer, Eutelsat assembles 1,200 men and women from
50 countries who are dedicated to delivering the highest quality of
service. Eutelsat Communications is listed on the Euronext Paris
Stock Exchange (ticker: ETL).
For more about Eutelsat go to www.eutelsat.com
Disclaimer
The forward-looking statements included herein are for
illustrative purposes only and are based on management’s views and
assumptions as of the date of this document.
Such forward-looking statements involve known and unknown risks.
For illustrative purposes only, such risks include but are not
limited to: risks related to the health crisis; operational risks
related to satellite failures or impaired satellite performance, or
failure to roll out the deployment plan as planned and within the
expected timeframe; risks related to the trend in the satellite
telecommunications market resulting from increased competition or
technological changes affecting the market; risks related to the
international dimension of the Group's customers and activities;
risks related to the adoption of international rules on frequency
coordination and financial risks related, inter alia, to the
financial guarantee granted to the Intergovernmental Organization's
closed pension fund, and foreign exchange risk.
Eutelsat Communications expressly disclaims any obligation or
undertaking to update or revise any projections, forecasts or
estimates contained in this document to reflect any change in
events, conditions, assumptions or circumstances on which any such
statements are based, unless so required by applicable law.
The information contained in this document is not based on
historical fact and should not be construed as a guarantee that the
facts or data mentioned will occur. This information is based on
data, assumptions and estimates that the Group considers as
reasonable.
APPENDICES
Appendix 1: Additional financial
data
Extract from the consolidated income statement (€
millions)
Six months ended December 31
2020
2021
Change (%)
Revenues
628.5
572.2
-9.0%
Operating expenses
(144.4)
(136.5)
-5.5%
EBITDA
484.1
435.7
-10.0%
Depreciation and amortisation
(260.2)
(243.0)
-6.6%
Other operating income (expenses)
(7.7)
83.7
n/r
Operating income
216.3
276.4
+27.8%
Financial result
(47.4)
(34.6)
-27.0%
Income tax expense
(24.9)
(56.9)
+128.5%
Income from associates
-
(12.5)
n/r
Portion of net income attributable to
non-controlling interests
(6.6)
(6.4)
-3.0%
Group share of net income
137.4
166.0
+20.8%
Change in net debt (€ millions)
Half-year ending
31/12/2020
31/12/2021
Net cash flows from operating
activities
435.1
363.0
Cash Capex
(116.9)
(98.2)
Interest and Other fees paid net of
interests received
(61.4)
(69.7)
Discretionary Free Cash-Flow
256.9
195.0
(Acquisitions) / disposals
(56.1)
(494.9)
C-band proceeds
-
109.4
Distributions to shareholders
(204.9)
(221.5)
Other
9.1
(13.5)
Decrease (increase) in net debt
5.0
(425.5)
Appendix 2: Quarterly revenues by
application
Quarterly Reported revenues FY 2020-21 and FY 2021-22
The table below shows quarterly reported revenues.
In € millions
Q1 2020-21
Q2 2020-21
Q3 2020-21
Q4 2020-21
FY 2020-21
Q1 2021-22
Q2 2021-22
Broadcast
190.6
188.3
182.0
180.1
741.0
177.6
172.8
Data & Professional Video
39.5
41.9
39.5
40.6
161.4
38.4
39.4
Government Services
38.4
38.5
36.7
37.7
151.4
37.0
36.8
Fixed Broadband
20.5
21.6
20.5
17.7
80.2
14.6
15.5
Mobile Connectivity
17.7
16.2
15.7
17.6
67.2
17.1
19.4
Total Operating Verticals
306.7
306.4
294.4
293.7
1,201.2
284.8
283.9
Other Revenues
8.6
6.8
6.9
10.4
32.7
2.6
1.0
Total
315.3
313.2
301.3
304.1
1,233.9
287.3
284.9
Quarterly Proforma revenues FY 2020-21
For comparability purposes, the table below shows proforma
quarterly revenues, which exclude the contribution of EBI from 1st
July 2020.
In € millions
Q1 2020-21
Q2 2020-21
Q3 2020-21
Q4 2020-21
FY 2020-21
Broadcast
190.6
188.3
182.0
180.1
741.0
Data & Professional Video
39.4
41.8
39.4
40.5
161.1
Government Services
38.4
38.5
36.7
37.7
151.4
Fixed Broadband
5.6
12.3
12.6
14.9
45.4
Mobile Connectivity
17.3
15.9
15.5
17.5
66.3
Total Operating Verticals
291.3
296.8
286.2
290.8
1.165.2
Other Revenues
8.6
6.8
6.9
10.4
32.7
Total
300.0
303.6
293.1
301.2
1,197.9
Appendix 3: Alternative performance
indicators
In addition to the data published in its accounts, the Group
communicates on three alternative performance indicators which it
deems relevant for measuring its financial performance: EBITDA,
Cash Capex and Discretionary free cash flow (DFCF). These
indicators are the object of reconciliation with the consolidated
accounts.
EBITDA, EBITDA margin and Net debt / EBITDA ratio
EBITDA reflects the profitability of the Group before Interest,
Tax, Depreciation and Amortization. It is a frequently used
indicator in the Fixed Satellite Services Sector and more generally
the Telecom industry. The table below shows the calculation of
EBITDA based on the consolidated P&L accounts for H1 2020-21
and H1 2021-22:
Six months ended December 31
(€ millions)
2020
2021
Operating result
216.3
276.4
+ Depreciation and
Amortization
260.2
243.0
- Other operating income and
expenses
7.7
(83.7)
EBITDA
484.1
435.7
The EBITDA margin is the ratio of EBITDA to revenues. It is
calculated as follows:
Six months ended December 31
(€ millions)
2020
2021
EBITDA
484.1
435.7
Revenues
628.5
572.2
EBITDA margin (as a % of
revenues)
77.0
76.1
At constant currency, the EBITDA margin stood at 76.4% as of 31
December 2021.
The Net debt / EBITDA ratio is the ratio of net debt to
last-twelve months EBITDA. It is calculated as follows:
Six months ended December 31
(€ millions)
2020
2021
Last twelve months EBITDA
968.6
873.4
Closing net debt13
2,994.4
3,081.0
Net debt / EBITDA
3.09x
3.53x
Cash Capex
The Group on occasion operates capacity within the framework of
leases, or finances all or part of certain satellite programs under
export credit agreements or through other bank facilities, leading
to outflows which are not reflected in the item “acquisition of
satellites and other tangible or intangible assets”. Cash Capex
including the outflows related to these elements is published in
order to reflect the totality of Capital Expenditures undertaken in
any financial year.
In addition, in the event of a partial or total loss of
satellite, as previously reported cash Capex included investment in
assets which are inoperable or partially inoperable, the amount of
insurance proceeds is deducted from Cash Capex.
Cash Capex therefore covers the acquisition of satellites and
other tangible or intangible assets, payments in respect of export
credit facilities or other bank facilities financing investments as
well as payments related to lease liabilities. If applicable it is
net from the amount of insurance proceeds.
The table below shows the calculation of Cash Capex for H1
2020-21 and H1 2021-22:
Six months ended December 31
(€ millions)
2020
2021
Acquisitions of satellites, other
property and equipment and intangible assets
(67.5)
(83.1)
Insurance proceeds
6.6
-
Repayments of ECA loans, lease
liabilities and other bank facilities 14
(56.0)
(15.2)
Cash Capex
(116.9)
(98.2)
Discretionary Free Cash-Flow (DFCF)
The Group communicates on Discretionary free cash flow which
reflects its ability to generate cash after the payment of interest
and taxes. DFCF generally and principally serves the shareholder
remuneration and debt reduction.
Reported Discretionary free cash flow is defined as Net cash
flow from operating activities less Cash Capex as well as Interest
and other fees paid net of interest received.
Adjusted Discretionary free cash flow (as per financial
objectives) is calculated at constant currency and excludes one-off
impacts such as Hedging, effects of changes in perimeter when
relevant, and one-off costs related to specific projects in
particular to the LEAP 2 program and to the move to new
headquarters.
The table below shows the calculation of Reported Discretionary
Free Cash-Flow and Adjusted Discretionary Free Cash-Flow for H1
2020-21 and 2021-22 and its reconciliation with the Cash-Flow
statement:
Six months ended December 31
(€ millions)
2020
2021
Net Cash-Flows from operating
activities
435.1
363.0
Cash Capex (as defined above)
(116.9)
(98.2)
Interest and other fees paid net
of interest received
(61.4)
(69.7)
Reported Discretionary Free
Cash-Flow
256.9
195.0
Currency impact15
-
0.9
Hedging impact
(6.1)
2.3
One-off costs related to “LEAP 2”
program and move to new headquarters
15.1
5.2
Adjusted Discretionary Free
Cash-Flow
265.9
203.4
______________________________________
1 Please refer to Appendix 3 for
definition and calculation.
2 The share of each application as a percentage of total revenues
is calculated excluding “Other Revenues”.
3 Change at constant currency and
perimeter. The variation is calculated as follows: i) H1 2021-22
USD revenues are converted at H1 2020-21 rates; ii) the
contribution of BigBlu Broadband Europe (BBB) is excluded from H1
2021-22 revenues; iii) the contribution of Eurobroadband
Infrastructure (EBI) is excluded from H1 2020-21 revenues; iv)
Hedging impact is excluded.
4 Other Revenues include mainly the impact
of EUR/USD revenue currency hedging, the provision of various
services or consulting/engineering fees and termination fees.
5 Number of transponders on satellites in stable orbit, back-up
capacity excluded. 6 Number of transponders utilised on satellites
in stable orbit. 7 The backlog represents future revenues from
capacity or service agreements and can include contracts for
satellites under procurement. 8 Please refer to Appendix 3.
9 Of which $30m called at end-December
2021.
10 Subject to the completion of the
investment announced by Hanwha in August 2021. As of 31/12/2021,
Eutelsat held a 25.13% stake.
11 Based on a €/$ rate assumption of 1.20
and current perimeter.
12 Including capital expenditure and
payments under existing export credit facilities and other bank
facilities financing investments as well as payments related to
lease liabilities.
13 Net debt includes all bank debt, bonds
and all liabilities from lease agreements and structured debt as
well as Forex portion of the cross-currency swap, less cash and
cash equivalents (net of bank overdraft). Net Debt calculation is
available in the Note 6.4.3 of the appendices to the financial
accounts.
14 Included in lines “Repayment of
borrowings” and of “Repayment of lease liabilities” of cash-flow
statement
15 H1 2021-22 discretionary Free Cash-Flow
has been converted at H1 2020-21 rates.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216006023/en/
Media
Joanna Darlington Tel.: +33 1 53 98 31 07
jdarlington@eutelsat.com Marie-Sophie Ecuer Tel.: +33 1 53 98 32 45
mecuer@eutelsat.com Investors
Cédric Pugni Tel.: +33 1 53 98 31 54 cpugni@eutelsat.com Joanna
Darlington Tel.: +33 1 53 98 31 07 jdarlington@eutelsat.com
Alexandre Illouz Tel.: +33 1 53 98 46 81 aillouz@eutelsat.com
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