Largest satellite operator worldwide, number 1 position in Europe in television broadcasting and in the U.S. in cable distribution, best geographical spread in the industry; Good visibility of revenues and cash flow and a backlog of €6.9 billion at June 30, 2004, owing to long-term contracts (10-15 years) and high barriers to entry; High EBITDA margins, currently in the mid 70% range owing to the group's large asset base and low operating expenses; and Very strong track record of transponder availability and operating efficiency. Expansion of new services (such as broadband provision) with unproven business models and higher revenue and cash flow volatility; Overcapacity of the satellite industry, with pricing pressures on point-to-point services and concentration of customers, especially among
