Eutelsat raises FY sales target; Q3 sales up

(Refiles to make clear that Berretta is also CEO)

PARIS, May 14 (Reuters) - France's Eutelsat (ETL.PA), the world's third largest satellite operator, said it is banking on increasing demand for home and mobile television services, as it raised its full year sales targets on Thursday .

In an interview with Reuters, Eutelsat chairman and CEO Giuliano Berretta said the group's resilience was due to the strong growth expected in digital television and broadband in the coming years, as crisis-wary customers turn to home entertainment.

"Video applications are our speciality, we are the main video provider in the zone covering Europe, Africa and the Middle-East. People will always want to watch football games," Beretta said. Satellite usage by public administrations, like the U.S. Department of Defense, also provides growth opportunities, he said.

"We are very present in the Iraq and Iran zone. The U.S. army uses civil satellites in complement to military ones. That should help them in logistics when they withdraw troops from these countries in the future," the chairman said.

ALLIANCE OPPORTUNITIES

Asked about potential acquisitions this year, Berretta said the group favoured alliances rather than external growth, but that he did not rule out acquisitions of "small companies" that were available.

The company, which on Thursday posted third-quarter sales of 236.5 million euros, up 5.6 percent, said it now expected full year sales of 925 million euros, against 910 million euros previously forecast.

The group had already raised its revenue guidance from 900 million to 910 million three months ago.

The group's debt, which stood at 2.4 billion euros at the end of 2008, was not seen as a problem: "This level has decreased and is totally acceptable. We are valued at 8.7 times EBITDA," said Chief Financial Officer Catherine Gouillard.

"And with a backlog up 300 million euros at 3.8 billion, we have the equivalent of four years of sales," Berretta added.

Video applications, which account for three-quarter of the group's sales, were up 4.5 percent, at 172.3 million euros.

The group also announced it had selected Astrium, an EADS (EAD.PA) division, for the construction of its new Atlantic bird 7 satellites, which will be launched in the fourth quarter of 2011.

Shares in Eutelsat were up around 2 perecnt in morning trade on Thursday, at 17.23 euros, giving the company a market value of 3.7 billion euros. The stock has remained virtually unchanged so far this year, after losing 13 percent in 2008.

Eutelsat is 31 percent owned by Spain's Abertis (ABE.MC) and France's Caisse des Depots et Consignations (CDC) has a 26 percent share.