Eutelsat’s Shift from Video Revenues Continues

Eutelsat’s headquarters in Paris. Photo: Eutelsat

Eutelsat Group is seeing encouraging signs in its mobility business, but video revenues continue to decline. These are two of the highlights of the operator’s latest results, announced Feb. 16. Overall revenues remained largely flat. In the six months to the end of December 2023, the operator generated revenues of 572.6 million euros ($615.4 million), which was virtually the same as the figure the previous year.

The transition from video-dominated revenues is in full effect. Video revenues saw a sharp fall in the six months to the end of December 2023. In this time period, Eutelsat achieved revenues of 331.1 million ($355.8 million), a near 10% drop off compared to the same stage the previous year. Video now accounts for less than 60% of Eutelsat’s overall revenues, which is significant.

However, its business in mobility is looking stronger. In the six months to the end of December, it generated revenues of 71.2 million euros ($76.5 million), an increase of over 27% compared to the same stage the previous year. Its government business also saw a double-digit percentage increase clocking in at 74.2 million euros ($79.7 million). Government services and fixed mobility now account for a quarter of Eutelsat’s overall revenues.

Eutelsat’s combination with OneWeb has been effective since September last year. The space segment of the constellation is fully up and running. OneWeb’s order backlog continues to grow, now standing at 700 million euros ($752.3 million), up by 23% over one quarter. Eutelsat says it is seeing strong commercial traction with several deals activated with major customers. It says it is also making progress on the ground roll-out following recently reported delays and it is on track for 90%  network coverage by mid-2024.

“The Eutelsat GEO business is performing in line with expectations, confirming the return to top line growth for Eutelsat historic scope for FY 2023-24, driven by the availability of EUTELSAT 10B and KONNECT VHTS. The LEO activities of OneWeb are progressing well, with 100 percent of the constellation in place and a secured and growing backlog. Delays in the availability of the ground network have impacted revenues, with a mix more oriented towards the sale of user terminals affecting margins, leading us to adjust our expectations for FY 2023-24,” Eva Berneke, Eutelsat CEO, said in a statement.

Eutelsat recently released a trading update that it is lowering revenue guidance for fiscal year 2023-24. Revenues are now expected in a range of 1.25 billion euros to 1.3 billion euros, versus previous guidance of 1.32 billion euros to 1.42 billion euros.