Eutelsat loses Flix TV
September 18, 2018
By Chris Forrester
The announcement by Eutelsat that it had secured a 38 channel, “multi-year” contract from Orange Slovensko is being well received by the market. But a few hours later the news emerged that another Eutelsat client, Flix TV, is to close.
First, the good news: Orange Slovensko will use satellite capacity on Eutelsat 16A to serve homes not covered by Orange’s FTTH network. However, the closure of Flix TV means 98 channels will be lost on 16A which occupies an estimated 4-5 transponders, and its commensurate revenues. Flix reportedly had just 5000-10,000 subscribers in Slovakia and the Czech Republic.
Equity analysts at investment bank Exane/BNPP believe that the Orange deal is worth about 2 to 3 transponders (about half of the capacity booked is for HD channels) and that the value will be around €1 milllion – €1.5 million annually per transponder.
The bank’s note adds: “This deal underpins our view that satellite infrastructure is -and likely will remain – complimentary to fibre-based video broadcasting. It also supports Eutelsat guidance of a return to Video revenue growth in FY19. We forecast Eutelsat Video organic revenue growth of 0.5 per cent or €4.5 million in FY19.”