Eutelsat Statement on the Suspension of Broadcasting Activities With Respect to Certain Channels in Russia and Iran

Rhea-AI Summary

Eutelsat Communications is implementing broadcasting restrictions as mandated by French and EU regulatory bodies. Effective December 21, 2022, the company has ceased broadcasting three Russian channels—Rossiya One, Pervyi Kanal, and NTV—along with all activities related to Islamic Republic of Iran Broadcasting. The financial impact for FY 2022-2023 is estimated at a revenue loss of €10-15 million and an EBITDA reduction of €15-20 million. In light of these changes, Eutelsat's revenue target for FY 2022-2023 has been adjusted to between €1,135-1,165 million, while confirming a cash flow forecast of €420 million annually.

Positive

• Confirmed objective of Adjusted Discretionary Free Cash Flow at €420 million annually for FY 2022-23 and FY 2023-24.

Negative

• Estimated revenue impact of €10-15 million for FY 2022-2023 due to regulatory measures.
• Estimated EBITDA impact of €15-20 million for FY 2022-2023 due to regulatory measures.
• Estimated impact of approximately €10 million on Adjusted Discretionary Free Cash Flow for FY 2022-2023.

PARIS--(BUSINESS WIRE)-- Regulatory News:

Eutelsat Communications (Euronext Paris: ETL) implements as soon as possible all restrictive measures on broadcasting activities adopted by the competent French and European Union regulatory bodies in line with its commitments. In this context, and as of Wednesday, 21 December 2022, Eutelsat has enforced the following:

With respect to Russia:

• Pursuant to the decision of the French Regulatory Authority for Audiovisual and Digital Communication (ARCOM) dated 14 December 2022, Eutelsat has ended all involvement in the broadcast of three channels, Rossiya One, Pervyi Kanal and NTV, within the prescribed 7-day compliance period.
• Pursuant to the Council of the European Union (EU) Regulation 2022/2474 of 16 December 2022, these three channels as well as a fourth, RenTV, will be subject to sanctions if so confirmed by the Council by 1 February 2023, in accordance with the notice 2022/C 481 I/04 released by the Council on 19 December 2022.
• In the process of implementing or preparing for the implementation of the aforementioned measures, Eutelsat has also ensured that it is not involved in the broadcasting of RT News in Russia. Moreover, Eutelsat reviews on a regular basis its distribution partners globally to ensure that the provisions of Article 2(f) of EU Regulation 2014/833 on the broadcasting prohibition of certain Russian channels are fully respected.

With respect to Iran:

• Pursuant to the Council of the EU Regulation 2022/2428 dated 12 December 2022, Eutelsat has ceased all Islamic Republic of Iran Broadcasting (IRIB)-related broadcasting activity.

For FY 2022-2023, the implementation of these measures is estimated to have a negative combined impact of between 10 and 15 million euros on Group Revenues, and of between 15 and 20 million euros on EBITDA, taking account of related collection costs. The estimated impact on the Group’s Adjusted Discretionary Free Cash Flow for FY 2022-2023 is c. 10 million euros.

The Group’s objective for revenues from the five Operating Verticals for FY 2022-23 is mechanically adjusted to take account of these impacts and is now expected between 1,135-1,165 million euros (based on a EUR/USD rate of 1.00). The objective of Adjusted Discretionary Free Cash Flow expected at an average of 420 million euros per year for FY 2022-23 and FY 2023-24 (based on a EUR/USD rate of 1.00) is confirmed¹.

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.

For more about Eutelsat please visit www.eutelsat.com

¹ This outlook is given for Eutelsat standalone.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221221005662/en/

Press

Anita Baltagi

Tel.: +33 1 53 98 47 47

abaltagi@eutelsat.com

Daphné Joseph-Gabriel

Tel.: +33 1 53 98 47 47

djosephgabriel@eutelsat.com

Investor Relations

Thomas Cardiel

Tel.: +33 1 53 98 46 81

tcardiel@eutelsat.com

Christine Lopez

Tel.: +33 1 53 98 47 02

clopez@eutelsat.com

Source: Eutelsat Communications

FAQ

What broadcasting measures is Eutelsat implementing in relation to Russia?

Eutelsat has ceased broadcasting three channels—Rossiya One, Pervyi Kanal, and NTV—as per the French regulatory authority's decision.

How much revenue loss is Eutelsat expecting due to regulatory measures?

Eutelsat estimates a revenue impact of between €10 and €15 million for FY 2022-2023.

What is the estimated EBITDA impact for Eutelsat in FY 2022-2023?

The estimated EBITDA impact for FY 2022-2023 is between €15 and €20 million.

What is Eutelsat's adjusted revenue target for FY 2022-2023?

Eutelsat's adjusted revenue target for FY 2022-2023 is between €1,135 and €1,165 million.

How does Eutelsat's cash flow forecast look for FY 2022-2023?

Eutelsat confirmed an average Adjusted Discretionary Free Cash Flow of €420 million per year for FY 2022-23 and FY 2023-24.