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Eutelsat Revenue Dips 6% in the First Half of FY 2022-23

By Rachel Jewett | February 17, 2023
Eutelsat's headquarters in Paris. Photo: Eutelsat

Eutelsat’s headquarters in Paris. Photo: Eutelsat

Revenue at Eutelsat Communications dipped 6% in the first half of fiscal year 2022-23, the operator reported Feb. 17, due to a decline in broadcast revenue. Eutelsat reported total revenues in the first half of 574 million euros ($613 million), down 6% like-for-like. The operator said first half revenues were within the range of its objectives for the year. 

Broadcast, which makes up 58% of Eutelsat’s revenues, declined 7% like-for-like compared to the prior year, to 339 million euros ($362 million). Eutelsat said this reflects partial renewal with Nilesat at ⅞ degrees West, and a non-renewal with Digitürk, as well as lower revenues in Europe.

Full year Broadcast revenue is expected to be even worse as Eutelsat feels the impact of complying with broadcast sanctions against Russia and Iran in the second half of the year. 

Fixed Broadband and Mobile Connectivity were a bright spot in revenues as the company is working to pivot from primarily a broadcast capacity provider to a telecoms company. Fixed Broadband grew 17% like-for-like compared to the prior year to 37 million euros ($40 million), and Mobile Connectivity grew 33% like-for-like compared to the prior year to 56 million euros ($60 million). 

Eutelsat said Fixed Broadband is benefiting from wholesale agreements with Orange, TIM, Hispasat, and Swisscom as well as growth in its Africa operations. Mobile Connectivity growth reflects the commercial success of the QUANTUM satellite for maritime mobility. 

Eutelsat confirmed its financial objectives for fiscal year 2022-23 with operating revenues between 1.135 billion euros to 1.165 billion euros ($1.2 billion – $1.24 billion). 

“Eutelsat delivered a solid first half, with revenues from our operating verticals within the range of our full year objectives and industry-leading profitability maintained with a 73% EBITDA margin. This financial performance enables us to confirm our standalone outlook for the full year 2022-23, and for the outer years,” CEO Eva Berneke commented. 

In an update on the ongoing OneWeb combination, Eutelsat said the deal is not considered for an EU referral, and France and U.S. approval is still ongoing. The deal is expected to close in the second or third quarter of this calendar year. 

“OneWeb continues to deliver positive commercial ramp-up, and the proposed deal to combine our two companies is on track for closing in calendar Q2/Q3 2023,” Berneke said. “In the long term, our new orbital assets as well as the projected combination with OneWeb will unlock significant potential in markets where the demand for connectivity is booming.”