Eutelsat’s Revenues See Small Fall, but Mobile Connectivity gets Stronger
Eutelsat released its Q1 2018-2019 results, in which the operator lowered its full-year outlook. Total revenues for the three months until the end of September reached $380.7 million (335.1 million euros), a fall of just under three percent compared to the same stage last year. This dip in revenue is partially attributed to the loss of a key U.S. government contract. However, while revenues saw a fall, there were plus points in the results. Mobile connectivity revenues saw a significant growth in the quarter compared to the same stage last year. The government services business also saw a slight increase in revenues compared to the same stage last year. Its video business was also surprisingly resilient, with revenues falling less than two percent compared to the same stage last year.
Eutelsat is working on cash generation through the launch of Eutelsat Cirrus, entering service of the capacity leased on the Al-Yah 3 satellite, disposing of its interest in a non-core asset (Eutelsat 25B) to its co-owner Es’hailSat, among other initiatives.
“The underlying performance of the five operating verticals is globally in line with our expectations at this stage of the year, where the revenue profile is back-end loaded due to the ramp of African Broadband and the China Unicom contract in the second half,” said Eutelsat Chief Executive Officer (CEO) Rodolphe Belmer “Recent months have seen the successful refinancing of our January 2019 bond, securing significant future savings in financial costs, and the disposal of our non-core interest in Eutelsat 25B.”