Latest News
[Satellite TODAY 04-15-13] Arianespace has announced it generated revenues of 1.33 billion euros ($1.74 billion) in 2012, one the highlights of the company’s latest set of annual results. Its aim this year, will be to generate a similar number in terms of overall revenues, according to Jacques Breton, senior vice president, sales & customers, Arianespace.
“In 2012, we reached 1.3 billion euros, which was a record for us. In 2013, we expect to be very close in terms of reaching the 2012 figure for revenues. Could we reach 1.5 billion euros? I think we will be quite close to the figure of 2012. I think 1.5 billion euros could be quite difficult to reach, as it represents around 20 percent year-on-year growth. Our target is derive similar revenues this year,” Breton told SatelliteTODAY.com
It is the second year in a row that the company has achieved one billion euros in revenues. Last year, the company announced that it had revenues of 1.01 billion euros ($1.32 billion) in 2011.
In 2012, the company had another successful seven Ariane 5 launches, three Soyuz launches, and the first Vega launch. The company is also expecting a busy year in 2013, and has ten planned launches: six for Ariane 5 (including one already performed), three Soyuz from CSG (in addition to a Soyuz launch from Baikonur, already performed), and one Vega launch.
In terms of how the company might boost profits, Breton said, “Our first target is to have balanced accounts. We are operating a family of launch vehicles, and we want to make them all profitable. We would like to boost revenues, but it is quite difficult. We have quite significantly increased our prices recently, because the support we have received from governments has reduced over time. Our increased prices have been accepted by the market, because of the reliability of our product. However, this has not really impacted our net profits, due to less government support.”
Since the start of this year, Arianespace has already signed a contract with Eutelsat for the launch of two satellites, a contract with Australian operator NBN for the launch of two satellites, and a contract with Intelsat for three launches. The company hopes to sign a number of new contracts this year. “We should see an average year this year. I think you will see around 20 contracts signed this year. The major satellite operators have finished their replacement programs for their fleet but this is compensated by some new players coming on the market. So, we think the market will remain stable. So far we have signed eight contracts, seven of which have been announced. Our competitors have signed three contracts. The target for Arianespace is to launch six Ariane 5 missions, so this represents 12 contracts of which we already have eight. I hope we can double this number during this year. We believe the market is quite responsive to our efforts,” Breton said.
The launch services market is an interesting one this year. SpaceX will launch its first geostationary satellites, Sea Launch will look to rebound after an early launch failure this year, and ILS – which is under relatively new leadership with Phil Slack – will also hope for an error free year, given the odd issue it has recently experienced with the Proton launch vehicle. In terms of how recent events may impact the market, Chris Baugh, President, NSR said, “Overall, in the launch services market and following concerns on Proton’s reliability, it should support Arianespace’s marketing approach focused on reliability. It should also give a window of opportunity to challengers such as SpaceX, Mitsubishi Heavy Industry and Alcantara Cyclone Space. If the Russian quality crisis is not rapidly addressed in an effective and reassuring way, it should drive launch costs up as the supply is limited.”
Breton believes even though Arianespace is more expensive, it is not losing out on potential business. “The Proton and Zenit vehicles have suffered some setbacks in the recent past. Today, we think customers are making a choice being based on reliability … over price. Our competitors are proposing lower prices, but we are not suffering as a result.”
Get the latest Via Satellite news!
Subscribe Now