Largest satellite operator worldwide (29 satellites wholly owned), No. 1 position in Europe in television broadcasting and in the U.S. in cable distribution; Good visibility of revenues and cash flow, thanks to long-term contracts (10-15 years) and high barriers to entry; and High EBITDA margins in the 80% range, owing to the group's large asset base and low operating expenses. Strategy to expand in new services such as the provision of broadband services, which have unproven business models and higher revenue and cash flow volatility; Satellite renewal investments that will peak in 2002, at €800 million, resulting in negative free cash flow; and Exposure to customer concentration, with Kirch representing 7% of the backlog and 5% of expected 2002 revenues.
