Eutelsat Sees Q1 2019 Revenue Dip, Attributes Data and Video
Eutelsat Communications reported financial results for the First Quarter (Q1) 2019, ended Sept. 30. The company saw Q1 revenues drop to $352.6 million (316.5 euros), or a 6.5 percent decrease, like-for-like, compared to Q1 2018.
Eutelsat CEO Rodolphe Belmer commented that this decrease in revenue was “notably due to worsening trends in Data and Professional Video and the unplanned return of a couple of transponders in Russia.” Eutelsat’s Data and Professional Video saw a dip to $47.9 million (43 million euros), a 19.6 percent decrease like-for-like compared to Q1 2018.
“The first Quarter has seen a number of milestones in our Connectivity strategy, with the procurement of Eutelsat 10B with significant pre-commitments in the mobility segment and the foundations laid for the Internet of Things (IoT) strategy, notably with the order of our first ELO constellation nanosatellites. Elsewhere, we have added a further lever to our cash flow strategy with the roll-out of the LEAP 2 cost-savings plan, aiming to generate opex economies of 20-25 euros million by FY 2021-22, which will be reinvested in our future growth verticals whilst preserving our EBITDA margin,” Belmer said. “We therefore confirm our Full Year objective of revenues for the Operating Verticals of between 1,280 million euros and 1,320 million euros, albeit with an increased likelihood of a landing in the lower half of this range. All other elements of the financial outlook are also reiterated. These objectives are subject to a nominal deployment plan, and notably the outcome of tests on the condition of the Eutelsat 5 West B satellite.”