Eutelsat Reports Double-Digit Growth in Fixed Broadband and Mobility in Q3

Eutelsat’s headquarters in Paris. Photo: Eutelsat

Eutelsat Communications reported double-digit growth in both Fixed Broadband and Mobility segment in the third quarter of 2022, which the operator said highlights “significant potential” in connectivity. 

Eutelsat reported its third quarter financials for the 2021-22 fiscal year on May 12, with operating vertical revenues of 284.7 million euros ($296 million), down about 3% compared to the same time last year. 

Broadcast, Eutelsat’s largest segment, reported 172.5 million euros ($180 million) in revenue in Q3, down about 6.8% compared to the same time last year, like for like. This was an improvement compared to the second quarter, which saw 8.6% year-on-year decline. Eutelsat said revenue declined due to a partial capacity renewal with Nilesat and a slight erosion in the underlying business in Europe.

Data & Professional Video reported 40 million euro ($42 million) in revenue, down about 3% compared to the same time last year, like for like. 

Government Services saw the largest drop compared to last year’s revenue, at 35 million euro ($26.4 million) in Q3, down 11%. This reflected a negative carry-forward effect of U.S. government renewals, driven by the withdrawal of troops from Afghanistan. 

Fixed Broadband and Mobile Connectivity both saw double-digit growth. Fixed Broadband reported 17 million euros ($17.7 million) in Q3, up 30% from the same time last year, like for like. Growth reflected wholesale agreements with TIM and Hispasat, strong African operations, and the ramp-up of the multi-beam agreement signed on Eutelsat 65 West A with several Mexican service providers. 

Mobile Connectivity, with 21 million euros ($22 million) in revenue, was up 25% from the same time last year, like for like. This is due to the carry-forward effect of the Anuvu contract signed last year, and growth in Maritime, driven by the ramp-up of contracts with service providers in recent years.

Eutelsat’s nine-month operating verticals total revenue of 853 million euros ($888 million) is down 4% year-on-year and in line with the company’s expectations. The operator confirmed full year guidance of revenue between 1.11 billion euros and 1.13 billion euros ($1.16 billion t0 $1.18 billion). 

“The third quarter saw robust delivery, with an improvement in Broadcast trend and strong double-digit growth in both Fixed Broadband and Mobile Connectivity, whereas Government Services inevitably reflected the geopolitical environment in the Middle East. Recent months have seen meaningful progress on the commercial front in particular with the successful commercialization of Eutelsat Quantum, said new CEO Eva Berneke.

The operator made a statement about business exposure to Russia in light of Russia’s invasion of Ukraine. The operator derived about 6.3% of its revenues from Russian customers in fiscal year 2020-21 and has no material revenue exposure to Ukraine. Eutelsat also leases capacity on four satellites owned by the Russian operator, RSCC, representing a net present value of 322 million euros ($335 million) as of 31 December 2021. 

“Eutelsat upholds a commitment to neutrality and is therefore guided by sanctions and by the decisions of its competent regulatory bodies, which it strictly applies. In this context, Eutelsat immediately implemented EU Council Regulation 2022/350, suspending the broadcasting activities of Russian television stations such as Russia Today,” the operator said. 

Eutelsat did not make any changes to its fleet deployment schedule.