The 38th meeting of the Advisory Committee (AC) of EUTELSAT IGO was held last 9 December in Paris, chaired by Poland (Piotr Dmochowski-Lipski)
It was attended by six of the seven countries in the AC, i.e. France, Italy, Luxembourg, Poland, Portugal (which simultaneously took part as chair of the Assembly of Parties (AP)) and Switzerland. Azerbaijan and Montenegro participated as observers.
EUTELSAT IGO executive secretary Christian Roisse of France reported on activities that took place from the last Committee meeting in March up to the present, especially regarding oversight of the company Eutelsat SA, which is monitored by the IGO, and whose financial situation continues to assure conditions enabling fulfilment of the basic principles and public service obligations incumbent upon the operator.
The poor financial results of the operator Eutelsat SA nevertheless stand out with respect to financial year 2015-2016, which saw revenue grow by only 0.2 percent versus the expected rise of between 2 percent and 3 percent. Those results were justified by downturns in two business segments (data and government services) and lower demand in developing markets owing to economic problems and lack of payment capacity in countries such as Russia, Angola, Nigeria, Brazil, Mexico, Colombia and Latin America in general.
The company’s deputy CEO, Michel Azibert, reported to the AC as usual, admitting that the last year was “disappointing” and that Eutelsat SA had been unable to achieve the set growth target. For financial year 2016-2017 the growth predictions are negative, between -3 percent and -1 percent (versus the forecast of between +4 percent and +6 percent); recovery is expected to show next year. He stressed, however, that competitors are also facing problems, with the Société Européene de Satellites posting growth of between -4 percent and -2 percent in the last year.
The company is currently reviewing its organisation and strategic priorities so it can achieve stability next year and return to growth in 2018-2019. A sign of this repositioning may be the divestment in July 2016 of the company’s 34 percent stake in Hispasat as well as the sale in the third quarter of a 70 percent stake in Wins/DHI (maritime mobility).
Azibert confirmed rumours that the tender for operation in the next decade of a constellation of 30 Galileo satellites had been won by Spaceopal, a joint venture between the German Space Agency (DLR) and Italy’s Telespazio - information released on 15 December by the European GNSS Agency (GSA), at GSA Signs Galileo Service Operator Contract https://www.gsa.europa.eu/newsroom/news/gsa-signs-galileo-service-operator-contract. Note that the company Eutelsat SA was among the bidders that did not win.
The ES informed the Committee about the current shareholder structure of the Eutelsat group. BPI France Participations (ex-FSI), a public investment bank formed by the French state and the Caisse des Depôts, is still the main shareholder, controlling 26 percent of the company. The investment firm Fonds Stratégique de Participations (FSP), held by the top six French insurers, has become the second biggest shareholder, controlling a 7.5 percent stake; ranking third is China’s sovereign wealth fund CIC, with 6.6 percent. Nearly two-thirds of Eutelsat’s shares, about 57 percent, float freely on the market. The Eutelsat SA fleet comprises 39 geostationary satellites covering two-thirds of global population. It is today the world’s third biggest satellite operator.
The AC also analysed results from the financial year between July 2015 and June 2016, during which the operating costs of EUTELSAT IGO stayed within budget and the organisation saved nearly 97,500 euros in expenses. The ES-reviewed budget for financial year 2016-2017 was also noted.
At the beginning of the AC session the ES gave a presentation on long-term sustainability of space activities. It referred to pertinent developments within the scope of the United Nations Committee for Peaceful Use of Outer Space. Another presentation was given by Christian Cazaux of the National Centre for Space Studies, focusing on the current situation and future constellations.
The next AC meeting has been scheduled for 26-27 January 2017.
