FIRST HALF 04-05 RESULTS

Results in line with objectives

First Half revenues of 723 million up 4.3% on a like-for-like basis1

High level of profitability: EBITDA margin of 77.4%

Net attributable income of 161 million up 9.1%, net margin of 22.2%

Strong backlog of 6.1 billion, 4.4 years of revenues

Full-year and three-year financial targets confirmed

Paris, 12 February 2015 - The Board of Directors of Eutelsat Communications (ISIN: FR0010221234 - NYSE Euronext Paris: ETL) has reviewed the financial results for the half-year ended 31 December 2014.

Reminder: First Half 2013-14 revenues have been restated. Please refer to table in the appendix.

Key financial highlights 6 months to Dec 2013 6 months to Dec 2014 Change

Revenues

Reported - m 647.4 722.8 11.6%

Restated - m 687.6 722.8 4.3%1

Profitability

EBITDA 2 - m 501.3 559.6 11.6%

EBITDA margin - 77.4% 77.4% n.c.

Group share of net income - m 147.3 160.7 9.1%

Diluted earnings per share - 0.670 0.729 8.8%

Financial structure

Net debt - m 2,793.9 3 3,807.0 36.3%

Net debt / EBITDA 2.8 4 3.5 -

Backlog - bn 5.3 6.1 14.4%

1 At constant currency and perimeter and excluding non-recurring revenues; 2 Operating income before depreciation and amortisation, impairments and other operating income/(expenses); 3 Excluding 537.3 million still in escrow at 31 December 2013 relating to Satmex acquisition which was treated as cash in the net debt calculation; 4 On a proforma basis, taking into account the acquisition of Satmex, the ratio would have been 3.3x.

Commenting on the first half, Michel de Rosen, Chairman and CEO of Eutelsat Communications, said: Eutelsat's half year results were in line with objectives, with like-for-like revenue growth of 4.3%, and an EBITDA margin of 77.4%. Video revenues are benefiting from additional capacity launched last year and from the positive dynamics of the Latin American market. Revenue trends in Data showed a slight improvement, while Value-Added Services reflected uptake on KA-SAT. In Government Services new contracts offset the lower renewals of the previous twelve months. A year on from its consolidation, Satmex continues to deliver in line with expectations and contributed positively to all applications.

Based on performance of the first half, we remain on track to meet our full year objectives, in the context of a tougher comparison basis in the second half and the current environment in Russia. Our targets for the next two years are also confirmed. We are confident in the longer-term demand trends in our industry, and we are investing in our future development with industry-leading innovation projects like Eutelsat Quantum .

This press release contains unaudited condensed consolidated half-year accounts prepared under IFRS which were reviewed by the Audit Committee on 10 February 2015 and approved by the Board of Directors of Eutelsat Communications on 11 February 2015.

REVENUES[1]

In millions

Reminder: reported H1 2013-14 Restated H1 2013-14 ReportedH1 2014-15 Actual change vs. reported Actual change vs. restated Like-for-like change1 vs. restated

Video Applications 430.5 435.8 452.4 5.1% 3.8% 3.5%

Data Services 83.8 106.1 107.4 28.1% 1.2% -0.7%

Value-Added Services 43.2 43.2 51.4 19.0% 19.0% 18.8%

Government Services 73.6 87.5 92.2 25.4% 5.5% 2.7%

Other revenues 15.8 14.5 19.4 ns ns ns

Sub-total 646.9 687.1 722.8 11.7% 5.2% 4.3%

Non-recurring revenues 0.5 0.5 - - - -

Total 647.4 687.6 722.8 11.6% 5.1% 4.2%

1 At constant currency and perimeter

Total first half revenues for the Group stood at 722.8 million, up 4.3% on a pro-forma basis at constant currency and excluding non-recurring revenues. The appreciation of the dollar relative to the euro added 0.9 points to top-line growth, particularly represented in Government Services and to a lesser extent Data.

VIDEO APPLICATIONS (65% of revenues)

Revenues from Video Applications were up 3.5% in the first half to 452.4 million. This reflected the entry into service of the Express-AT1 satellite, which was operational for the full semester, resources added at the 7 /8 West position in September 2013 and the good performance of Satmex.

Significant contracts included the multi-year renewal of seven transponders at Eutelsat's HOT BIRD video neighbourhood by nc , the Polish Pay-TV operator.

At 31 December 2014, the total number of channels broadcast by Eutelsat satellites stood at 5,741. Excluding Satmex (307 channels broadcasting at 31 December 2014), the channel count was up 13% year-on-year. HDTV penetration continued to increase, representing 11.4% of channels at 31 December 2014 compared to 10.6% a year before. A total of 657 channels were broadcasting in High Definition across Eutelsat's fleet at the end of the first half, up from 508 a year earlier.

Research published at the beginning of January by the Eutelsat TV Observatory showed that the number of homes receiving channels broadcast by eight of Eutelsat's flagship television neighbourhoods serving Europe, Russia, North Africa and the Middle East now stands at 274 million, up by 32% since 2010, of which 138 million receive channels from the HOT BIRD neighbourhood. Direct-to-Home remains the leading reception mode across the combined Europe, Russia, North Africa and Middle East footprint. The number of Direct-to-Home households is growing, up by 44% to 160 million homes between 2010 and 2014.

DATA SERVICES (15% of revenues)

Data Services first half revenues stood at 107.4 million, down 0.7% year-on-year. The take-up of capacity on EUTELSAT 3B with clients including some telecom operators in the Middle-East, and the ongoing solid performance of Satmex offset less favourable trends in general in the EMEA region.

On a sequential quarterly basis, the underlying trend showed

LINK:	http://news.eutelsat.com/pressreleases/first-half-2014-2015-results-11...
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